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

Ladies and gentleman we are ready to start our meeting and we will have legislative audit give the audit findings for the department of higher education. And then we will continue with the rest of the program with Mrs Walton presenting Harriet. Would you state your name please for the record. Thank you madam chair name is Christy Sanders with legislative audit in your packet you you have the higher ed findings for the fiscal year eighteen audit since then we have completed the nineteen and it was presented at the October L. Jack meeting so I will go over those findings instead. And there was only one for nineteen is a repeat finding. Agencies are required to record amounts to for student loans in accordance with Arkansas code annotated nineteen dash to dash three oh four. Additionally a state agency set out diligently and actively pursue the collection of their accounts and notes receivable. Arkansas department of higher education overseas several state funded student loan programs. Students who receive the loans may be eligible to have the loans forgiven if they meet certain criteria students not meeting the criteria are placed in repayment status the agency is required to maintain student loan subsidiary ledgers to track changes in total loan balances throughout the year the subsidiary ledgers are then used to adjust longs receivables an asus during the fiscal year end closing process. Review of thirty one active individual student loan files reveal the following deficiencies and loans receivable. For instances totaling a hundred and forty thousand six hundred nineteen dollars of student loan balances for which it was unclear if collections should have been pursued or forgiveness was warranted due to insufficient documentation. For instances totaling thirty five thousand six hundred twenty four dollars of student loan balances in which the documentation provided did not match the subsidiary ledgers resulting in an understated receivables balance. One incidence of loan forgiveness totaling twenty two thousand seven hundred forty one dollars that the auditor was unable to reach calculate due to insufficient documentation. There's also review of thirty two in active student loan files which revealed the following deficiencies and loans receivable. For instances totaling thirty six thousand a student loan balances that should have been placed into repayment status and collection pursuit as a result of recipients not meeting the long requirements. Three instances totaling ten thousand one hundred ninety six dollars a student loan balances which the documentation provided did not match the subsidiary ledgers resulting in an overstated receivables balance. In three instances totaling four thousand five hundred of understated student loan balances that were placed into repayment status. Follow up on the prior year eighteen audit deficiencies in inactive accounts received receivable read revealed two of the three two of the seven deficiencies remained on corrected as of completion of field work on the nineteen audit. We recommend the agency continue to reveal the set review the subsidiary ledgers to ensure receivables are properly reported and actively pursued for collection in addition we recommend the agency maintain procedures to ensure stay long files are maintained and regularly monitored and updated. This concludes our finding. All right any questions from the committee. Seeing none thank you so much for your report alright ladies and gentleman we are going on with the division of higher education and doctor of mark come if you were in the audience and then of I don't know if first secretary key wants to come. With her and the Mister Rogers if he would like to come as well. Right. When you're settled. State your name for the record and the you're recognized thank you madam chair Maria Markham director of higher education. Johnny key sector of education. All right A Katie you. Walden. What you are reading thank you madam chair. Good afternoon members the division of higher education the budget is also a manual five they request begins on page two ninety two. The department of education division of higher education services the administrative staff for the Arkansas higher education coordinating board additionally eighty H. E. reviews academic programs and Mister state wide financial aid programs and contracts with the southern regional education board for support of graduate and first professional study outside of Arkansas their department appropriation is on page two ninety five of the manual you can see they have twenty two total appropriations totaling ninety six point three million dollars for each year the biennium eight of those included change level request. They receive general revenue federal revenue special revenue trust funds in cash funds they have forty nine positions. And I will review the eight appropriations with change levels. For you the first one is on page two ninety nine. This is the general operations appropriation this provides for the administrative functions of the division it is payable by general revenue as well as lottery proceeds the appropriation request totals three point nine million dollars each year and includes the following changes. A transfer of six positions to the shared services appropriation with associated salaries in match along with thirty four hundred in operating costs and three hundred and forty in conference in trouble to shared services. They also request to reallocate fifty thousand dollars an appropriation from from professional fees to operating costs this is just a reclassification of existing expenditures that are associated with the universal application scholarship website. They also request to restore fifty thousand capital outlay to replace aging servers networks storage storage and network printers each year. Finally the requested to have their D. category finding that was cut restored the executive recommendation provides for the agency request an appropriation. The next section with changes on page three of two. This is student assistance grants and scholarships this appropriation provides for the board to award financial aid based on academic performance and some programs financial need. This is funded with a combination of funding sources including general revenue the total request is for sixty four point sixty two point four five million each year and this includes. A decrease of four million dollars in grants in aid. This is for the A. R. future program and this is to just more accurately reflect scholarship funding availability. Also a decrease of one million each year and the H. E. opportunities grant due to the phasing out of this program. And family they ask for an increase in fourteen point two million dollars in general revenue funding to continue to be able to find all qualified applications without limitation. The executive recommendation provides for the request an appropriation. The third appropriation with change levels is on page three of five. This is the ten F. appropriation. This federally funded appropriation total seven point one million dollars each year and provides for the administration and aid of the Arkansas career pathways program. The total appropriation is as I said seven point one million this includes a decrease of one thousand dollars in operating expenses and ten thousand and professional fees to accurately reflect spending of available funding. And in this case the agency needs they have a set amount of funding each year and so anytime they have to make MALOCH matching adjustments to their salaries are matching they have to correspondingly decrease from other lines to be able to maximize that funding the executive recommendation provides for the agency request. Page three of seven this is the eighty H. E. scholarship administration appropriation. This provides for the administration of the Arkansas academic scholarship program it is funded with lottery proceeds. The total appropriation is seven hundred and seventy thousand each year and includes the following changes. A reallocation of a hundred and twenty thousand dollars each year from professional fees to operating and this is for I. T. services that are no longer classified as professional services. And the restoration of thirty five thousand dollars in capital outlay for replacement and upgrade of IT equipment the executive recommendation provides for the request. Page three oh nine is the technical education federal programs this appropriation provides for the administration of the Carl Perkins funding for post secondary portion of the Perkins act funding including career and technical education services. The request is for four hundred ninety six thousand dollars each year and this includes increases of thirty thousand each year and operating expenses thirty nine thousand conference and travel and twenty five thousand professional fees and all these increases are due to additional funding received from the federal government. Executive recommendation provides for the agency request. On page three fifteen. You'll find the eighty H. E. private career education board cash appropriation. This provides for administration of a grant received from the Winthrop Rockefeller Foundation it pays tuition payments for students participating in career and training programs associated with the private career and board the agency request is for twenty thousand dollars each year this includes a twenty thousand dollar decrease in operating expenses and an almost three thousand dollar decrease in conference and travel and three thousand professional fees and this is just to match available funding. Executive recommendation provides for the agency request. Page three twenty nine. Is the americorps operations appropriations. This provides for the operations of the americorps program and it is funded by general revenue that is the state match. Portion. The agency request is for six hundred and forty two thousand dollars for each year. And for a hundred and seventy thousand each year in general revenue. This includes an increase in a hundred and forty thousand dollars in operating expenses and an increase of eighty two thousand conference and travel expenses and this is to reflect actual funding levels for the program and the executive recommendation provides for the agency request. And the final appropriation with change level this page three thirty one this is the americorps grants appropriation. This provides for the grant program is given to volunteer americorps programs across the state. This is actually federal funding. And the agency's request of two million dollars each year includes a change level decrease of five hundred thousand and this is to more accurately reflect funding levels. The executive recommendation provides for the agency request. Thank you madam chair. Thank you Senator hammer you're recognized for a question. Thank you madam chair of first question head is on the Arkansas governor scholarship in a I believe I had a conversation OR one affirm this there's been thanks of delays caused ACT test been put off has a has have the deadlines been pushed back for applicants to apply for the Arkansas governor's scholarship for can you update now we did typically the the deadline for that scholarship is in February we gave an additional month because there is a February ministration of the ACT so that students would have one additional chance to take that exam before the deadline okay and then I had a question on the Your. It's on the web based applications. And I'm not page three twenty two were manual on its the Why eighty five web based applications. I noticed in the explanation. That it says that you're requesting a hundred thousand appropriation. Five hundred of the. Is general revenue but when I look at your actual expenditures it only accounts for sixty thousand eight twenty four and the staff pulled for me over. The break that so far shows a chill haven't spent anything this year so I was wondering. The sixty thousand eight twenty four second to be the ceiling or can you give me some understanding why were given five hundred in general revenue but haven't spent but sixty thousand and nine as of today. At yes Senator hammer the reason for that is we are I am in the midst of developing and IT upgrade for our web based application we're hearing proposals for providers to do that at this point so we have the plan we're hearing proposals we just have an expense any funds toward this effort yet okay what what was the original estimate of what the contractor come in for. We've only gotten one proposal and so far. And A think it was around five hundred thousand dollars for the development and the infrastructure upgrades. Okay and that's intended to handle the grant applications for the students for the department or or for yes it's it's our universal scholarship being system it is. Limping along and it's time for an upgrade so we're gonna have to do basically a complete rebuild of that system with it's built on some old technology and so we were entertaining a couple of proposals that were about to make choose a vendor to to do that that parades okay thanks for the explanation thank you Mr. The senator bond you're recognized for a question. Thank you very much I didn't expect to be in the queue that quick so appreciate it is looking at page three of two and three of three. In the book and and I just maybe I got a couple questions about the this so if you go across the bottom one three of three on total funding. Maybe if somebody can help with that so we see were gone agency. And then executive and we're down on the executive to. To forty six million to thirty three three thirteen is that correct. Marina rye. And the access appropriations been gone up. And staffs number can just trying to make sure I understand the. Can you. Clarify the question what the question is the our what is our our funding is decreased I guess my reading this correctly by nine teen. Well thirteen million dollars. I believe the I believe the difference there is the agency requested forty two million in general revenue. And the executive records for thirty engine engine or of any city executive recommendation with less than the agency recommendation. Why is a. We're spending down the fund balances. They're fund balances of built up there that this reflects but this been them. Are referred suspender nine so going back of we reduce the Arkansas futures program by four million dollars we were asking to reduce the appropriation for that because we were spending that much when we talked about this in the break I have a report on that for you said that we've we've approximately doubled they I take on the Arkansas future grant the last year of but it still. Quite a bit shy of the email I believe we had eight million dollars initially appropriated for that and we're closer to four and a half so we we've eliminated some excess appropriation shifted things around. Well done and I agree there's been progress made on that we passed a our features and set and twenty seventeen is my recollection and that was of significant part of the governor's higher ed package and he the projection was nine million. And. I guess my you know we weren't getting that take very much of taking them we allowed for some marketing and we got more of take in this time where we have declining two year four year college going rates in Arkansas why are we not trying to. Expand the use of that scholarship instead of cutting it back. That's a great question senator bond and just for a little bit of history in eighteen we had about four hundred eighty one thousand dollars S. been either that it was one point two last year and we're up to about one point six this year so it incrementally going that we're we're awarding every student who is is eligible at this point we haven't cap that or had any to turn students away so there's been some discussion on broadening the lanes for students to be able to qualify for this adding some additional programs but there are some limitations you know it had to be in certain disciplines for students to be able to qualify so by broadening some of those categories it's possible that will have better uptake we've done quite a bit of out reach in marketing and it is growing I think the nine million projection was once it was fully implemented then we had students in the pipeline it you know various levels freshman's A sophomores and so on and so. Yeah we're slowly getting there but we're still a long ways from nine million dollars to Justin want to tie all that money up for one scholarship if it was gonna be utilized in the coming year. Well not to and I I won't be today horse on the that it seems to me that we we just a services program at nine million we have a lot of focus on it we broadened at some just in the last legislative session to allow to be used in different areas if you recall the program the the the executive branch also put the program some things where you have to have a guide and somebody in the committee help you and there's a lot of hurdles in that program. for people to comply with that which we try to reduce but it's targeted at nontraditional is in part and people who may already have some college you can go back and get their certificate and I'm I don't think we ought to be devaluing encouraging these people to go to school we ought to be. Trying to ramp that up on a just a I'm concerned that we're we're sort of becoming a accepting of the fact that we run forty seven forty eight and forty ninth in our level of education of our people as opposed to trying to. The set a new goal and achieve it thank you backing on that what we have that twenty twenty plan right was at the time Arkansas higher and twenty twenty do we have a new plan about expanding at yes we did well we're working on it we have to have it done by the end of the calendar year so we have our next five year strategic plan that we are in the final phases of development now and a big part of that is affordability so there's going to be of a lot of recommendations on scholarship being and affordability issues as well all toward moving ahead on our goals for attainment and I would want to circle back to the Arkansas future grant as well I think one of the reasons we've had a well expenditures on this is because we have added additional scholarships in our state this being a last dollar scholarship a lot of our participants by the time they tap into Arkansas future they've already expended or they've already satisfied all of their their funds needed funds for the programs that they're in so we've had a lot of students have already got it all paid for by whatever dissipate and then also have to do the community service in the mentor ship it they didn't see the benefits that we had some opt out because of that and then others you know just that they're they stay in the program but the average expenditure per student is very low if the if the students are attending a two year college between Pell grant and lottery scholarship and other things they don't have a lot of unmet need left. Well and that's your brown that's part of my concern of the quote we're bouncing around from a our futures and seventeen and now I know there's a new plan for needs based scholarships it'll be passed this year and that that long range planning to target house what are we shooting for you know do we have those targets set yet for how much growth we're gonna have or they have those been set for the next five years yes Sir they have so we have a we were targeting fifty five percent of all adults and in our state having a post secondary credential marketable credential by twenty twenty twenty thirty we've made that ahead of it to twenty thirty so we are breaking that down we're getting very regionally specific and industry specific so we set targets based on what region the state we're we're looking at and then also the occupation so we know where our biggest gaps are and we're focusing on those gaps in our in our economy and our work force so we we have that will be ready to present that sometime after the first that you're to this great I thank you not I do always appreciate you that always very candid in your responses to me and I appreciate that thank you. All right senator Elliott you're recognized for a question. Unfortunately is along the same lines I. One of the things that's been a problem that was a problem from the time we set this up and it sounds like it's kind of reversed itself from was a lot of us were concerned that this indeed was the last dollar amount and so there are people out there who never could could not even access it because of that and so are we in a position now where you're saying those folks are probably have found some other way to fund to college and that this is not even something they're exploring or do we know that we just lost people because they had to wait until this was the last dollar. I would. I think I would have to make some assumptions to say that we've lost people because the cost for these programs at the two year colleges are so low of those who are have the highest need usually covering those costs with their their Pell grant there's really not much benefit for for people who already have established unmet need they get other sources of assistance to explore this program. Is this is is if you were my made this is also the same program that does not include private colleges do I remember that correctly that's correct okay and so and there are is that it is an issue with that kind of the think will think about because so because at least you know two of those colleges where a lot of uh kids could benefit are the H. B. C. use I'm of the vote A private colleges are eligible however it's the program of study says the phone so we like we have some of eligible programs that Williams Baptist we have some of the Jefferson school of nursing which is not private but it's not a college and so it that the issue is I don't have any of those short term credential programs in the areas that we've identified right and so since we don't have those and there are people in the H. B. and these colleges I mention who are interested in other areas I think we really ought to. Thank about. Talking with finding out from students who want to pursue that credential find out more of what is it they're they're wanting to do as opposed to our dictating what you have to do which I thought was you know kind of a a problem in the first place and we said only if you pursue this this and this and I think and and you probably know more about this and that but I do what I've been reading the latest research. Receive the latest is the thing now is you need it you need to get a credential even god for bid if it is a little arts credential. Matters and so the fact that the that's not an eligibility I think is a real problem so I would just like to ask if I don't know how you answer this question. That would be not be a. The prudent and not make in this this cut right now but less less to do some research in the meantime and we can always make that change from what we come to a of a budget you know in the and though they come to the session. Because I'm really concerned that we're cutting back on something that I think we maybe happened sufficiently explored what people really need and what they want to do. I was just let me just make a motion to do that but I just want to have some discussion to see if you have any thoughts about it because I I don't see on a need to hurry but I do see a need to do some further exclamation exploration. I think that's definitely worth worth some exploration I think we left sufficient appropriation and funding there for for some growth we just did cut it back some and we can also and we kept the money and their pressure appropriation within our scholarships and grants funded so we could we could transfer of funds and appropriations back to that if we saw that we were having increased demand on that are in and So you're saying if we do the exploration believes explore this further but if we go ahead now and do the decrease and we find out we need it we can put it back in the and and what kind of generations would that include. We have to convince other than us and you have to convince in the executive branch. Well obviously governor and the Legislative Council I believe would be the entities that typically and I'm. Dalby with the you'd be for that if we are for cutting it now you're telling me. And if we saw the need for it you would be allies and yeah we really think this is something we ought to do if it's I'm not just saying **** nilly but something that we can justify. skews me senator thank one of the things we need to keep in mind too is that what we were saying in the first year of the biennium one of the last biennium unemployment rates of three and a half percent. And just to historically when you have nearly full employment People don't have the incentive for the needs they don't see the need they have it but they don't see it to go on pursue these types of opportunities I think that's one of the contributing factors to the low participation rate yes I agree not gets back to something I think Senator bombs man talk about two is that they have a job that we haven't created aspirational pitcher to to distinguish the difference between having a job. And a job that pays is which is traditionally been our problem in Arkansas I love the low unemployment that look at what the jobs are you know for so many people is what I'd like to support. What I'll do this with the I will I will You know I won't make a motion to to not decrease it but I. Really do want this to be on record for all of us and we get to the point we need the rest of that money. After we. Make people aware of the difference for example of having a job and having a job that where you have a great credential because I think that's part of what we've been talking about with the Making sure people are made aware of of what's possible here I'll explore with you and just to have to circle back on your questions the most we spent so far is just under two million dollars on this program we had nine million appropriated were asking to cut that back to five so it would have to double in the at taken the next by and to even get to that so but we would definitely be the open test shifting funds back into that program if we need. All right thank you thank you madam chair. Of we're going to them hear from representatives Springer. Ready for question yes thank you madam chair I'm going back to of page three twenty three Senator hammer follow up on some of the questions that he asked earlier. Of I believe as I recall you indicated that DO you head of beaded this particular appropriation out of will base applications for I am. The item number and so you indicated that you were head bid out and I'm kind of following up on the point that senator Chesterfield has been making so how many of these have you received with respect to this and of the number that you receive how many of those were from minority contractors. This this didn't Was a bit out in that manner it was built out I mean is the service provider currently is designed I they have a new name now but the formerly known as information network of Arkansas so I think we're waiting for them to they have it ready we seven scheduled time to meet for them to go over the they're propulsion so what was in what makes this not be eligible for be it. It was it was originally done by I am a I don't know that is not eligible for a bit but it was already I am a was already the entity that to have this and you say they submitted of the in the amount of five hundred thousand dollars I don't think that was we haven't seen their **** so I thought that's what I heard director. Markham say the rate up front there's an element of up front programming and then there's on going so the five hundred thousand is correct for the up front programming bin then there's some ongoing expenses that are factored in and I don't think either one of us have those that information. So would reach a million dollars is going to reach that a that number. I feel comfortable that over time we will reach that number I don't know if the up front investment is going to be at that and it may not all be contained in this portion of our appropriation some of it may be you know personnel related adding people to our our agency to administer some of these databases and December the development in house so I really don't feel comfortable yes we can to the particulars of what that budgets going to look like it okay but they're not they're not indicated any additional persons are not indicated for twenty one twenty two north twenty two twenty three not at this time okay also you you say that that may take place this alright thank you. All right thank you. Representative hammer your record amend sorry Senator hammer you're recognized. Thank you ma'am chair couple questions I'm on page three eighteen. It's a. The forty two private career ed. Are there any of the schools. That have not paid their licensure fees. Not to my knowledge Sir. So all the murder. Have paid their fifteen years and then we don't have anybody out there not. Not to my knowledge I would have to follow up with The administrator for that program to see if we have anybody that hasn't paid but to my understanding everyone is current okay is that amount sufficient. With regards to the potential what the need may be or deal monitor that I guess from time to time we do we have to keep a minimum of three hundred thousand dollars in the fund balance to ensure against any claims for students and then anything over that we can transfer into our scholarships and loans program we have a couple of things that are would be funded out of excess funds there so it flows over into scholarships okay and then back to page three oh two. The student assisting grants. The secretary key made a statement while ago the trawler spending down your fund balances and that's. the rationalization for what's presented on three oh two. What is your current fund balance now. it looks like. We have a rail owns fourteen million dollars in fund balance. Yes. Is it is the intent to spend. All of that down or what's the what's the the floor that you're going to go down to. We keep a fine balance you know we would for fire report fund balance because that is how we cash flow a lot of our scholarships at the fund balance has allowed us to fund all eligible students without caps were rationing out those scholarships so we have been so deficit spending from our funds every year into that fund balance we had to do quite a bit of deficit spending in the previous year so the reason we ask for the increase was to make up for some of that deficit spending. It is the I'm just trying to my mind around it is is it that we've been spending down the fund balance and now we realize that we spent too low and that's why we're having to come back in in fusion some money into it help me understand that because it sounds like we're going one direction now we're reversing go back the other way and I'm just trying to understand well fund balances DO eleven flow depending on the number of participants in each of these programs and so when you look at the wide variety of programs that we have and the the different targeted populations within those programs some years you may have higher numbers some years you have lower numbers but over time you know that that the fund balance it was created we've seen more activity I would say in a number of these programs so Dr Martin you're looking to make sure we don't get into a situation where you know if we get to short on law enforcement officer dependents or any of these other types of programs that that there's sufficient funds in the balance to be able to to meet those needs we have to a scholarship programs in particular that we typically do deficit spend and those are the governor his English scholarship because it was originally established with a certain number of students that we thought we would find and that this is a ten thousand dollar your scholarship without tripled the number of students who are eligible for that and then the other is our military dependent scholarship that's grown quite a bit in the last several years students taking advantage of that opportunity so we have dipped into that fund balance quite a bit. Okay alright thank you thank you Mr. Can you Representative would. You're recognized. I have a. Two three questions of the Accounts receivable for our ships or no scholarships but loans that you all have made do you know how many what's what's the dollar amount of those that are delinquent and how many the number. I do not know I would have to get of my sister director for finance up to speak to that if you would like that information or I can get that to you later the. Only up. Health education grants and loans will page two thirty two and Three thirty two and three thirty three. Hello hello to you determine how you pay the institutions like the university of Tennessee dental school and the others is that only her student base is a do we have the X. number of slots over there if we're not feel we don't pay of those that were that's correct we contract through the S. R. AV for these medical education programs that we don't have they had they use the S. sorry be average cost and that's how much we pay for slot but if there's not a student in that slot we don't pay. Is no do you know how many spots this so you have at the university of Tennessee. For dental school yes dental school and we have. We have a hundred nineteen students total that are participating in that program. Not sure how many we have it Tennessee. We have twenty three slots there. At the university of Tennessee in Memphis for dentistry. and that means we have twenty three students who are at each level of the program so it's more than twenty three students but it's twenty three slots says I believe a three year program so twenty three in each year. There has been taluk. And I may have missed it but what is the status of the vet school we pay in Oklahoma state or L. issue who are we who are we paying. Of for our students we pay we have slot thank you so much for bringing this and we have started Ellis you we have a slide into ski Alabama one in Missouri and Columbia and want to Stillwater Oklahoma seven nine flights at Ellis you in three of the rest of what we have planned at work had requests to add a slot at Mississippi state and that's one of the reasons we've asked for additional funds for scholarships it takes about a hundred thirty four thousand dollars a year to add a slot for that is that the. This seems to be more schools there than dental dental schools. Is that because the students can select where they won't go when we funded is that how that one works that well yes so the the school has to participate in the slot program so they have to be a member of the S. sorry be programs and then we have to have a student who is accepted into that program and then that institutions selects which of our students get the slot so we don't get to pick the student the vet school actually picks the student. No not to F. for dentistry we have several schools as well Tennessee is our largest okay primarily Tennessee is the money more yes. Yes we have a. Twelve other slot the other schools for dentistry besides tennis the what is the status of the veterinarian school in this state. Of there are conversations with one of our four year universities to create a veterinary school much like the osteopathic model that we have a issue so at that you know it has to come online yet but there is momentum in that direction should that happen we would be able to phase out or veterinary program for the other state. Thank you thank you for your answers thank you madam chairman carrying of A along the same line of I couldn't find where the rule medical school loans Wallace for those medical students of the with a list on. That is not in our appropriation medical school is UAMS administers that program and I think all of that appropriation assist them all right this good explanation thank you all right the senator bond. Well I couldn't resist on my way out the door here we had Senator Davis and Representative Whitaker were kind enough to have a higher read subcommittee meeting about this idea of having a one Arkansas portal where you go and applies to all colleges in Arkansas that want to participate in you receive information from them at one location. Anybody who's ever help the kid a plow which I've done recently and have to fill out all the paperwork monitor all the deadlines I think in Arkansas would appreciate if we can establish that system our state colleges and we made anymore progress on that idea to make it easier on students and families to apply and receive costs and scholarship information. Those conversations to continue you know we had I in a come in and do a kind of a a concept presentation for us after that when we realize that are universal system was going to have to receive a lot of attention and funds before we could move in that direction that really took the focus away from that but it is something that we're gonna continue to have conversations with them about if we can create an infrastructure that will pull a lot of our data systems together and allow us to do that so yes very much so on our radar of we've got to fix the financial aid issue first and hopefully be able to tie that in with an admissions application process as well I just think that would empower students and families and right now the all the burden is on the students and families really not the institution so I think it would make it easier thank you. All right representatives fund your record recognized for a question thank you madam chair and this may be a question for either you madam chair or someone in the bureau I'm back on the of beating. Process do the criteria regarding whether or to obtain be it's for services in the different departments of the state do they very from department to department or is there one of procedure that applies to all departments. Thank heavens going to try to answer that question alright thank you the. The office the transformation is the office of procurement and there are as procurement laws for all state agencies that are established in in law in code and there are procedures rules that they have set out their office procurement so they they are uniform. Thank you. All right to ladies and gentlemen that concludes the questions on this particular part of I need a motion for executive break in a seven and a second. Okay all those in favor say aye all those opposed motion passes all right to for the next the. Of portion of this of the northwest technical institute and is Walt and you're recognized. Thank you madam chair. The division of higher read northwest technical institute appropriation begins on page three thirty four of manual five the northwest technical institute which is part of the division of higher ed is located in Springdale Arkansas and functions as a secondary career center providing classes to high school students offering eighteen technical career diploma programs and they also serve as an adult education center for the northwest Arkansas area the department appropriation summary. Is on page three thirty five of the manual. You'll see they have three total appropriations. That include nine point two million dollars each year of the biennium they do receive general revenue federal revenue and cash funds they have seventy five positions and a hundred and three X. two hundred and thirty three hundred thirty five extra help positions so all review the three appropriations with you now the first one is the northwest technical institute state appropriation it's on page three thirty seven. This appropriation provides for the operations of anti I and is funded by general revenue and adult ed grants received from the division of work for services and transfers from the work force two thousand fund. The request is for five point two million dollars for each year of the biennium. This includes a one transfer of operating expenses at forty six hundred dollars each year and four hundred and sixty dollars and conference in travel to shared services for the whole department they also request to restore twenty thousand dollars in capital outlay for equipment and this will be funded with adult education grant funding the executive recommendation provides for the agency request. On page three thirty nine you have the northwest technical institute federal appropriation. This provides for the utilization of Carl Perkins grant federal funding for job training programs they request three hundred and thirty nine thousand dollars for each year of the biennium and this includes an increase of ninety thousand dollars each year in extra help and associated matching costs. They receive additional federal funding and a request to use this extra funding to hire faculty to teach an increased number of family literacy classes and adult education in the executive recommendation does provide for the agency request. The final appropriation FOR NT eyes on page three forty one. This provides for the expenditure of funds received in tuition costs resale from the bookstore and apprenticeship programs and is used to just supplement their general revenue appropriation the request is for three point six million dollars for each year the biennium and this includes the restoration of two hundred thousand dollars in capital outlay for equipment expenses for instruction as well as plant maintenance the executive recommendation does provide for the agency request as well as one reclassification the position thank you madam chair all right to amend if you would like to come on up and take a seat and the. This. Introduce yourself for the record. Herman my name is John Rawlins as of July one of this year I became president of the northwest technical institute it's been a great experience of the last four months I have with me today our financial officer miss from my camera and our director of apprenticeship development Mister Tom fracking all right thank you for being here A we have a question from senator Elliott. Thank you madam chair for general and so glad to see you haven't actually retired. still serving that's great I just I just have one but I think it's a simple question about adult add on an of where we are and if their budget implications for the cost of the students who were who were taken the higher the adult ed on the adult a test to see if the a pass or or whatever the board is we use these days Senator I apologize fund and hear all of that but let me tell you just a little bit house bill to the program I believe is perhaps the very finest and state prior to code we were serving well over a thousand students a year and our adult in program these are amazing young people who are finding themselves through the personalized approach of adulterated graduation rates are excellent and we just want to continue that we need to obviously the content upgrade our equipment and our capital outlay request today Is to have an effect on I ask at the end of the chorus when they take the test don't they still take a test at the end of the course to see if they're going to they're proficient yes that's right okay side are date pan for that test themselves or his or something built in our budget that pays for that test because of three or four years ago that became a big issue where are they had to start paying for taxpayers before they had not. Understanding the funds are available to help with the cost of those tests to help with that yes Sir covered okay and secondly they they take that test in Spanish yes okay yes that that someone needed or congratulations to I guess both you would northwest art. Madam chairman I appreciated Representative Wilkins questions earlier about. Courses of study offered and the Jim let me come back to that for just a moment to give you a feel for the breadth of the offerings in our program hi hello health program is one of the finest in our state I have a wonderful personal experience just last few days a graduate of a local high school. Went on to the university of Arkansas governor bachelor's degree in biology and came back to northwest technical institute for her specialty training in surgical technologies. This kind of story that we need to tell and propagate across our entire state so a lot of health program touches nursing of preparation last meal peons we do the nursing assistance program we do surgical technology the list goes on and on and on so are a lot health programs one of our very finest. You might be a lawyer that schools like ours are built on partnerships which I think is a great model for any school. But with local industry in our region Tyson foods as an example are mon you refrigeration program is home its way to becoming the finest in the nation we're expanding the mon your fridge Russian facilities that are now they're more than tripling the the size of that facility and we we serve and students from around the nation and that's very important house food science process. Obviously our students level of technology they love diesel technology center for years our schools primarily in eight to for school but because of the need in the area and because of our partners asking for additional systems and because of student interest we're expanding those program madam chairman this point an automotive technology diesel technologies her school very quickly will extend its programs to the common day program then moving to a full evening program as well. We intend to be allowable role the program in our region I think for well on her way to doing that you can imagine in our state certainly in our region Saville licensing is extremely important we have a private provider on our campus today but again in the midst and and with the help of following members partners were bringing on line a school wide CDL program which will prepare well over a hundred drivers per semester some we're very excited about that for sure. Electronics robotics is on everyone's mind again working in partnership with local industry to build that offering as well industrial maintenance of I was introduced to this program as we brought of the correction Ford in the new don Tyson school of innovation it was an offspring of what was already employees and in the beauty I so again that area of need that gap and workforce development is really being addressed Mr fracking in just a moment might have the opportunity to talk with you more about the role of NWT working in partnership with the state to bring on more and more certified and information technology specialist our governor had talked openly over the last year about training sixteen hundred or more students in the area of information technology entity is now becoming the sole provider for the state in terms of that preparation experience and the beautiful part of it however the students involved that program will have access to a nationally recognized promptly it based instruction which many was very familiar with and they're able to do it in partnership with the state has no cost of them that is a beautiful formula for addressing technology readiness in our area. The welding technology please Jim is a major part of our curriculum we just again because of the influence of marvelous partnerships opened a brand new willing center that was built on private donations partnerships partnership partnerships partnerships with our state well legislature our governor and certainly would local industry is what helps make our system what it is H. rack of which is literally in literacy and mathematics I've already spoken to the adult ed program and what I want to emphasize to each of you we have sixteen major school districts in our region we have articulation agreements partnership agreements with each of them and how other providing curriculum instruction is roller campus or they come to ours so I hope I'm painting a picture of a. School that is emerging in terms of being really I knew northwest technical institute serving the students of our area and and helping me to workforce needs of our area. Chairman of be glad to address any questions you have all right thank you senator rice to work you're recognized for a question thank you appreciate you being here today I'm a fan of the anti got to tour with other legislators few years ago on former president in October store many times to people in business that one of the instructors happened to be the ammonia division got a phone call we should go and take the phone call we stopped thirty came back and he said that was one of our major industry to name them set for some ammonia students and I had a terrible early two weeks in the course my question is with call would are you still having a good percentage of pre placements across the board from what industries change or is that changed a lot of short term courses have clearly been impacted industry is very slow with the. Issues that we're dealing with with the pandemic to allow workers to come from their work place in the private sector back to their workplace so that's been slowed significantly. Maybe it's just a stroke of luck but as I say there were two point now of expanding our facilities for a major construction phase I thank as things these with a code red has our new facility is completed brought online we can readily make up for the lost time that we've had instruction so that my work out and in very reason why. And and I've told many people when when people graduate they're they're ready to going to workforce make good money you pay taxes review to work thank you thank you all right to. Senator hammer you're recognized for a question thank you manager over here all I to your left on give me a little background because I guess I should've been better prepped for this but as far as northwest how are you a standalone facility working in conjunction with the other colleges or what your what's the basis please we are considered to be a state agency we're group under higher education So we are we are a higher is part of the yeah could you speak into the Mike this week we are a standalone in the sense that we're kind of one of a kind or as Jim alluded to earlier we will we perhaps for the last career and technical training institute in our state. And you you cater only to those that have graduated high school the adult population is that correct well actually we have secondary students enrolled in our in our on our campus as well as the post secondary so we've got a really good blend that's of that are taking with articulation agreements and I spoke to a we have a high school students on our campus and welding and and and our certified nursing practitioner programs for sure. Okay do you have the the high school students in the adult population there to same time or you run split program it is a split program there on campus at the same time but they have their own instructional setting. Okay thank you thanks for. All right the Representative Wooten you're recognized for a question. For a point. Personal privilege madam chairman all right. Yeah hello my name most of my colleagues I'm sure we're doctor Rollins but let me share this with the Springdale school districts losses the state to guy thank you Mr Mendis yes it to the state of Arkansas and you involved with this program and just want to know that support you and support your institution and the need is so great. Not not not just for higher is in the state before vocational technical trying like your group is a forty and I just commend you for that and commission you congratulate you own on the change thank you very much thank you thank you madam chairman alright thank you a. We have one more question A it's in seat twelve who with the okay. Yes alright you're recognized thank you madam chair of doctor Rollins good so you and your team here today and I appreciate the great job you all are doing down there. What what we need more programs like this for the young people that that need a career and for the businesses that need these workers out there what what with that being said I understand as a state agency back earlier in the last year when we just of the budget down the started covert G. all take five percent to just like everybody else did house in the governor's budget that was not restored do you all plan on asking or applying for for that the cap that you took earlier to be reinstated if possible yes Sir we desperately need those funds to be restored our budget and we will make that request okay that amounts to about a hundred fifty thousand dollars yes Sir in that range okay thank you. All right to the no other questions but to a senator of eaves you're recognized thank you and you're like to make a motion this is a proper time this is the proper time manager like to make a motion for executive wreck with the exception of on in cash that they have an additional miscellaneous operations appropriation of two point five million for each year of the biennium for some additional funding that they have that they could be receiving. All right thank you ladies and gentleman you have heard that motion I have a second. All those in favor say aye. All those opposed the motion passes thank you very much appreciate you being here. All right the. Of miss one then school for the blind. Thank you madam chair the Arkansas school for the blind appropriation begins on page three forty two of manual five the Arkansas school for the blind provides education and training for children and young people from birth through age twenty one OR visually impaired so that they will possess the required skills to become personally productive and self sufficient citizens. Services include vocational training residential living extracurricular activities low vision evaluation services physical and occupational therapy life skills training braille publications adaptive technology and evaluation and weekly statewide transportation for residential students there department appropriation summaries on page three forty three. You'll see they have five total appropriations and the request is for eight point seven million dollars for each year of the biennium finding consists of general revenue existing fund balances federal revenue and some cash funds and they have a hundred and one full time positions and seventeen extra help. The first appropriation of for your review today is their operations appropriation it is on page three forty five. This is funded with general revenue and provides for the main operations of the school for the blind including their main campus which is a residential facility as well as the agencies out reach and vision testing programs and most of the positions of the agency the request is for seven point two million each year and includes the following changes the transfer of four positions to shared services. With associated salaries in matching also transferring sixty eight hundred in operating expenses and six eighty six and conference and travel also shared services. The request an increase of a hundred and fifty five thousand each year in salaries in match for various teacher pay stipends in the past the school for the blind used separate lines line items of appropriation for the shift in differential and extra duty pay but in order to prelicense efficiencies there bring all those expenses under the salaries in matching lines. So the same payments is just under different line item. Also they're asking for an increase in forty three thousand and professional fees due to increased costs and contracts with medical professionals for example optometrists that might come to the school. And they asked for restoration of their category de funding the executive recommendation provides for the agency request an appropriation. The next appropriations on page three forty seven. This is the federal operations appropriation it provides the authority for the agency to spend federal past three dollars or grant funding name out received as well as Medicaid reimbursements and an adaptive technology grant from the department of ed. The request seven hundred ninety five thousand dollars each year and this includes restoration of eighty five thousand dollars each year in capital outlay this is to purchase adaptive technology and to replace aging equipment and their holdings library executive recommendation does provide for the agency request. Next. Appropriation is the braille textbooks this is on page three forty nine. This is funded the general revenue and is used by the school to purchase and distribute braille textbooks at the school for the blind as well as to all school districts around the state they serve as a clearinghouse for all districts for braille and large print textbooks a request to continue this appropriation at two hundred and twenty three thousand dollars for each year the biennium. And increase general revenue funding by seventy three thousand to meet additional demand for braille textbooks and adaptive technology the executive recommendation provides for the agency request an appropriation only. Page three fifty one. Is the cash appropriations for school for the blind this is funded with USDA reimbursements interest on cash investments and donations a request a total of four hundred seventy four thousand dollars for each year the biennium this includes an increase each year in capital outlay for the purchase of equipment the potential donations and executive recommendation provides for the agency request. And the final preparation for your review for AS be is the ASB demolition fund is on page three fifty three. This appropriation was funded with a one time release of money from the attorney general's consumer education. Find it was used for the demolished mint and as best as removal of the former Easter seals building on their campus that building is demolished but there were some funds left over and so the agency request to use the remaining fund balance of two thousand eighty dollars for site improvements on the same site just to spend that balance down in the executive recommendation does provide for the agency request thank you madam chair. Right of do we have for the. Superintendent James Kattan. Come to the table please. If you would identify yourself for the record. You can. James Kate and superintendent of the school for the blind Mr Caton of. Senator Elliott. You're recognized for a question. I thank you up missed K. not doctor Kate and which one is it doctor Mr but I never corrected when you lay on Dr okay all right I my question about the budget depends on the answers with the first part of this question when a student graduates from school for the blind are they are often like a student who might graduate from any other K. twelve school are they usually position they need to go further to to acquire skills to be a self sufficient yes ma'am we actually find that a large percentage of our kids go on to pursue secondary post secondary education in various colleges around the state to gain additional skills we also work in partnership with the division of services for the blind on further training after they graduate from us and as well as World services for the blind also worked very closely with us and with some of our kids I know you there right down the street from me so I know that says so my question are there any implications any budgetary implications do we do anything to help with that or date of they just seek the same source of funds for higher ed pursued store later persons to assess any other student just as any other student you know of course we uh they have transition plans before they graduate you know from the school helping to support them and the direction that they're wanting to go as far as our our specific budget so we don't have that built in you know after that because usually they're working through DSP and do you help them apply for ages well before there as part of the yes is on with our school counselor on campus helps them with whatever aid they need to apply for okay so forth. Alright thank you the twenty two now appreciate. Okay Senator hammer you're recognized for a question. Thank my appear I'm just curious at I've got a. Up. Establishment of state agency in my district and I'm the cost to tear down the building that involved as best you member the total price tag on that run off. A no Sir I don't I'm sure I could get that for you that happened right I think back in about two thousand fifteen sixteen when I took over superintendent. but I don't remember the the price tag on that are was issued a side bar because of what do comparison and you mention that you work with the World services for the blind of are they the only organization you work with as far as trying to coordinate services for for your population is or anybody else. Well services and and division of services for the blind or the two main ones that we we do work with because they're blindness a specific that are here in Arkansas okay and do you have any affiliation with any up. Of. Counselors are support staff that works with the blind population say in public schools or in schools outside of your own. In the sense of Well I mean in the sense of a working through division of services for the blind then the kids would all have like a vocational counselor okay you know but again those things are specific to the blind and and visually impaired In in in that sense okay a I was become under the impression maybe there was uh into the out in Malmo or somewhere that a population of students have been going to you don't know a thing about that no Sir I do not okay alright thank you thing manager all right to seeing no other questions or need to Executive Rick second all those in favor say aye all those opposed motion passes thank you so much right next on our agenda is the school for the deaf. Doctor Janet Dickinson. All right in a you were ready for you Katie. Thank you madam chair got all off on the wrong page thanks for your patience the next section begins on page three fifty four the Arkansas school for the deaf and they do have audit would you wait just a minute we do have some audit findings just a minute. Yes. Right. Thank you madam chair tumbling to legislative audit you're recognized the school for the deaf had to audit findings we reported are less for for the first on finding the age he was unable to locate twelve assets totaling six thousand dollars and an additional three assets totaling about twenty nine hundred dollars we're not tag with the asset number of it or inventory number to allow for proper identification. In addition they had building improvement telling about two hundred eighty three thousand dollars that were incorrectly coded as equipment in their in their journal leisure. And lastly on that finding incident reports were filed with the little rock police department document the theft of a laptop and a lawn mower with total value of seventy five hundred dollars. Second finding the AC authorize payments to one vendor using a purchase order for data and electrical insulation project with the total invoice amount of almost sixty nine thousand dollars. Work was performed and payment issue without requesting receiving and evaluating competitive bids as required by state procurement law. In addition it was also noted that three bills were not obtained or contract entered into for sign language therapy services provided by one vendor in the amount of thirty four thousand dollars. I'm sure they could please findings all right. There no questions so thank you for that report all right ms Walden you're recognized to continue. Thank you madam chair the Arkansas school for the deaf operate is a day school with residential facilities they also provides services for students aged from birth through age twenty one. Programming includes academic vocational social emotional transition residential extracurricular family training ideological services physical therapy speech language psychological therapy and others they also function as a resource center on deafness. And and they provide services to students who are deaf and hard of hearing throughout the state also in partnership with agencies like the department of career read department of education U. A L. R. and the little rock adult education center the department appropriations summaries on page three fifty five they have three total appropriations totaling twelve point one million dollars each year in this request funded by general revenue federal revenue cash funds and fund balances they have a hundred and fifty six full time positions in fifty two extra help authorized the first appropriation is on page three fifty seven. See me the tables on page three fifty eight. And there are quite a few details about this one I'll try to be brief this is the main operations appropriation for a city it's funded with general revenue in some cash funds the total appropriation is eleven point one million dollars and includes the following items the transfer of positions for positions to shared services with associated salaries in matching ten thousand in operating expenses in one thousand conference and travel also shared services. Then they would like to increase salaries and matching at about five hundred and forty seven thousand dollars to again bring that extra duty pay and the shift differential pay under their salaries in matching the same effort that I mentioned before with the school for the blind. And you will also notice a corresponding decrease with the elimination of the S. C. P. I. a S. L. appropriation line within this appropriation. They're asking for a decrease of twenty thousand each year an extra help in matching and a corresponding increase of a hundred and thirty five thousand dollars for technical services contract as they're electing to stop hiring substitute teachers on their own they're going to contract with a substitute teacher service. An increase of thirty seven hundred dollars each year in overtime and matching and this is for comp time pay outs for employees to leave the agency and have a crew to comp time. An increase of twenty thousand dollars in capital outlay for the replacement of H. back units boilers and other necessary repairs. And then across the board you will see moderate decreases and conference and travel professional fees special maintenance and miscellaneous activities all of these reflect actual expenditures in an accurate way. Finally they asked to restore their category de funding and executive recommendation provides for the agency request an appropriation. Right A go ahead thank you madam chair and there's two more appropriations the. The and the next one is federal operations it is on page three sixty. This is the primary federal operation support they request seven hundred twenty five thousand dollars each year and it provides for an increase of thirty thousand and salary and seven thousand a matching to pay for tutors. They're also asking for moderate increases in their line items across the board because now that they're part of the department of education their eligible to receive title one entitled to finding so the realizing overall program growth with access to those funds and family with this appropriation they're asking for twelve thousand capital outlay each year for the purchase of classroom equipment and the executive recommendation provides for this request. The last appropriation is on page three sixty two. This is funded with USDA breakfast in school lunch reimbursements interest in cash investments and legacy donations. A request for three hundred and fifteen thousand dollars each year this includes decreases in operating expenses professional fees and special maintenance to better reflect projected revenue and forty thousand dollars. Increase in capital outlay to purchase new school buses and vans for the school for the deaf thank you madam chairman and executive recommendation provides for that request. Thank you A ladies and gentleman there no questions on this so I have a motion for executive Rick second all those in favor say aye. All those opposed motion passes. All right all right now we are going on to the Martin Luther king junior commission. I would go back state library. So Katie. Thank you madam there are audit findings I believe are there no I'm sorry I'm thinking of a different one page three sixty four of the manual. The state library serves as a resource for state governments public libraries in for all Arkansas citizens. They provide support and to the state wide with access to information and they also provide guidance and support for the development of local public libraries and library services the department appropriation summary is on page three sixty four they have five total appropriations totaling twelve point eight nine million dollars for each year three of those have changed level requests. They receive general revenue federal revenue public school funding for local library aide and balances in cash funds they have fifty full time employees and twelve extra help. So going over the appropriations with changes we have the library stay operations appropriation it's on page three sixty six this is funded with general revenue and provides for the ongoing operations of the state library. The total request is for three point six million dollars for each year this provides for two positions to be transferred to shared services along with three thousand and operating expenses and three hundred dollars in conference and travel all of that going to shared services to help pay for the administration of the cabinet. And then the restoration of category de funding the executive recommendation provide to the agency request an appropriation. On page three sixty nine. We have the federal operations appropriation. Findings from the US department of education through the institute of museum and library services. This promotes access to resources of all kinds of libraries and permits access to library material through electronic networks they request. Three point two million dollars for each year of the biennium. This includes one reallocation of ninety five thousand dollars from operating expenses to conference and travel and this is just a reclassification of existing or potential expenses they want to put on an in house conference and they were recommended to allocate these funds in conference and travel. They also want to restore forty thousand dollars in capital outlay for the replacement of aging vehicles in the executive recommendation provides for the request. And the final appropriation for review with changes is the aid to public library appropriation it's on page three seventy one this is public school funded and provide annual support to local public They have a separate appropriation for their cares act grants that the library received. And A support for the state library during the pandemic they do you anticipate those all those funds being spent by the end of this fiscal year so it's not requested for the biennium. Thank you madam chair. The king junior commission Thank you many quality as a way of building community among all our They have to appropriations totaling for about four hundred nine thousand for each year the biennium. And one of those include the change of a request they do receive general revenue and cash funds and they have four positions. The first appropriation is on page three eighty one. This provides for the operation of the commission it is paid with general revenue and cash funds the request totals three hundred eighteen thousand dollars for each year the biennium and includes an increase in appropriation of three thousand each year. And corresponding funding to provide FOR an increase in rank costs for the commission. They're also requesting fifteen thousand dollars in additional G. R. to make one part time position into full time and executive recommendation provides for the request an appropriation only. The second appropriation is the treasury cash appropriation on page three eighty three. This provides for the commission to receive grants and donations to carry out the duties of the commission as well as to provide community based programs and crime prevention activities. The agency requests to continue this appropriation at ninety one thousand dollars for each year of the biennium and the executive recommendation provides for this request thank you madam chair. A okay thank you very much I don't have any questions on this and need executive a motion for executive brick. You right second all those in favor say aye all those opposed motion passes. Right the last one owner of agenda we have an audit funding funding and it's attached to your agenda. Thank you madam chair tumbling to legislative audit again. And in the as to this for the Arkansas education television commission they had one finding in their two thousand nineteen report. Of the education television commission received a grant from the Arkansas department education for two point eight million dollars for fiscal year nineteen. The fund the ideas program for teacher professional development and education resources. The department there perform an internal audit of the program disbursements and noted costs is considered unrelated to the idea program telling four hundred nine thousand dollars. Development services to the Arkansas ideas program an executive recommendation provides for the agency request and the last appropriation is the eighty in state operations appropriation. This is funded with general revenue and And they record request to continue the same appropriation with the exception of the normal salary in matching adjustments and they're also requesting an increase in general revenue of seventy eight thousand dollars each year to restore previous cuts the executive provides for the request an appropriation only thank you madam chair. We have one question six thirty four who would that be duration okay. Is that a Representative Douglas so that there can we can't see it is that you bank okay Representative Eubanks you're ready. Thank you madam chair of AT and T. E. P. M. does fund raising it but that those funds be in the cash fund for their funding sources. Right please the introduce yourself yourselves for the record then you can answer the question. good afternoon everyone my area. Afternoon Ahmed Leon deputy director of AT T. and now known as Arkansas PBS I have with me and our director of finance Fred we door and our director of government and external relations Marty rile. Pretty one at that answer that one. The answer is yes to that question the Fundraising from the affiliated foundation is included in the cash funds yes. Okay thank you any other questions okay see twenty two. Okay Senator Elliott. Thank you madam chair for the seventy eight million dollars or so that beard requested that I get that a thousand maybe I have that you have an appropriation only for approved what it what are the implications were what is that money to be used for. What requests that the difference in general revenue over what was approved was. Basically the growth and and salary and benefits based on the the pay plan okay and so how do you make up for that if you know if if if it's appropriation only and doesn't get funded. Well we will not be able to fill a position or to that's how will make that a. Number that have any kind as well. I I I I don't want to put your correct an additive in your mouth I guess but what with the effect of that be in anything we're supposed to deliver for our state. Well it will it will have some impact the problem it may be not so much toward the direct delivery of services mostly we we would to. We would look to. Not feel it minutes stratus staff which we we don't have much of that to start with as far as the. In all. And then finally did did did you have some positions in mind if you're going to personal someplace to have to bird positions you're proposing that you'd like to feel. Are you actually saying you would cut somebody back to so I understand what it would be positions that we would propose to feel A huh okay adequate funding was there was there. Alright thank you. All right of Representative will you're recognized. A okay you you pass okay all right the ladies and gentleman there know the questions and need executive rec center all right to have a recommendation motion second all those in favor say aye all those opposed alright ladies and gentlemen of this does can conclude our work but if you would look around on your desk if you have cups and bottles and that kind of thing if you would dispose of it that would be most helpful thank you so much and we are during.