Said in CommitteeBeta

Exactly as spoken.

ALC-PEER

June 17, 2025 ·10:00 AM ·Room A, MAC ·1:43:35
Video Transcript 38 documents

Transcript

Transcript available Whisper ✓ SliQ live captions: not yet available Download .txt
Machine transcript

May contain errors. Verify important quotations against the official video.

About transcript accuracy
Source
Whisper
Model
ggml-large-v3-turbo.bin RTX5060
Processing date
October 6, 2026
Representative Jeff Wardlaw Chair Unverified 0:00
members will you grab your seats we'll go ahead and get started we'll start off with first things first Representative Painter if you would open us up with morning
▶ Play Suggest a correction Report an error
Representative Stetson Painter Unverified 0:23
prayer Lord just help guide us allow us to do your will Lord just be with all our family and friends that are suffering different things, Lord, and we just ask that you be with us and forgive us where we fall short of you. In your son's name,
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 0:41
Jesus. Amen. Thank you, Representative. Members, if you follow along in your packet, we have a supplemental agenda. I need a motion to suspend the rules. I have a motion. I have a second. I have a second. All those in favor, say aye. Aye. All opposed. Ayes have it. DFNA wanted to make it clear this was their fault and not the department's fault that it didn't make it over here if y'all want to hear from dfna i'll bring them to table otherwise we'll let it go billy if you would
▶ Play Suggest a correction Report an error
William Parrish Unverified 1:05
thank you mr chair we're in section b these are various temporary appropriation requests the first subsection will be b125 requests b1a is a letter from the department of commerce it's a securities department it's
▶ Play Suggest a correction Report an error
Chair Unverified 1:19
115 000 in appropriation this is to provide spending authority for the security department to reimburse the bank department for the time the bank department staff allocates to securities department activities. In the 23 regular session, the securities department was moved inside the bank department. The departments were combined into one shared appropriation act for the fiscal year 25. However, each department still maintains their own salary section and spending authority is needed to transfer funds between the two departments. The letter says the departments were not aware of the need for this appropriation when their budgets were created for fiscal year 25 and this transfer will allow the proper allocation to occur in the statewide accounting system mr. chair those are all the requests for fiscal year 25 and various appropriate appropriation any questions for committee
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 2:03
seeing none without objection stands approved billy ready to go can i get a motion to approve second i have a motion that second all those in favor say aye. All opposed. Ayes have it. Next
▶ Play Suggest a correction Report an error
William Parrish Unverified 2:18
item. Thank you Mr. Chair. We're in B2. B2 are the fiscal year 26 requests for various temporary
▶ Play Suggest a correction Report an error
Chair Unverified 2:23
appropriation. B2A is a letter from the Department of Inspector General. It's $119,000 in appropriation. This is to accommodate the transfer of the juvenile ombudsman division from the Public Defender Commission and that was passed in the last session. B2B is a letter from Department of Commerce, Division of Workforce Services. This is $20 million in spending authority. It's to modernize unemployment insurance through improvements to technology, systems, and hardware. B2C is on page three. This is a letter from Energy and Environment, Division of Environmental Quality. It's for $360,000 to spending authority. This is to spend down the remaining funds in the computer and electronic recycling fund. The program was closed out in the last session, and appropriation was discontinued. However, spending authority will be needed to spend the last deposits that were made until the act takes effect, as well as spinning down the remaining fund balance. Next item is B2D. This is on page four. This is a letter from Commerce Economic Development Commission. It's for $5 million. It's to support the Community Assistance Grants Program for Community and Economic Development Projects and nonprofit organization initiatives. Next item, B2E. This is a letter from Transformation Shared Services, Office of Personal Management. It's $2.2 million in spending authority. This is to upgrade the AR career software and integrate it into the state financial management system. Next item is a letter from Transformation Shared Services. This is B2F. This is Office of State Procurement. It's for $8 million. This is to provide project management, technical staff, and software license for the Ariba e-procurement software. Page 7 is B2G, Commerce Securities Department, $160,000. Allow for transfers between the securities and bank department. That was similar to the request made in B1 for Fiscal Year 25. and it's also to replace carpet install six new cabinets six new cubicles sorry b2h is on page nine this is a letter from labor and licensing board of appraisers abstractors and home inspectors six hundred nine nine thousand is to provide spending authority for a newly created fund that was established by consolidating three separate funds for the board b2i is on page 10 public safety division emergency mansion 103 000 is to cover operational and travel needs for
▶ Play Suggest a correction Report an error
William Parrish Unverified 4:36
the fire protection services program b2j is page 11 public safety state crime lab 1.1 million it's to purchase lab equipment supplies diagnostic testing services and
▶ Play Suggest a correction Report an error
Chair Unverified 4:44
cyclical accreditation fees b2k is on page 12 public safety division state police 60 000 to cover overtime for driving track personnel b2l
▶ Play Suggest a correction Report an error
William Parrish Unverified 4:54
is public safety division of state police 2.5 million provide fleet equipping and maintenance professional services costs taser purchases and capital
▶ Play Suggest a correction Report an error
Chair Unverified 5:02
items, including a mobile fitness trailer. B2M is on page 14. Public Safety Division State Police, $340,000. Purchase safety equipment, including in-car cameras. B2N, Public Safety Division State Police, $5.4 million. Rebuild the CDL facility that was destroyed in the May 2024 tornado and for training barracks construction. B2O is Public Safety Division State Police, $105,000 appropriation, And this is to purchase two bomb trucks. Mr. Chair. That's the end of 26 VT airquests Representative Cavanaugh Which one do you have a question?
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 5:37
Oh, I have actually two questions But my first
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 5:41
question is on item B for the Department of Commerce. We have someone from the Department of Commerce
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 6:00
If you guys would introduce yourself for the record, and Representative Kavanaugh, you're recognized for your
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 6:09
question. Good morning. Christian Redsberry, the director of the Division of Workforce Services, Division of Reemployment. Stephen Giese, CFO. My question is, this modernization's been going on for a number of years. Where are we at in the project? Make sure
▶ Play Suggest a correction Report an error
Speaker 35 6:27
I'm lit up here. Thank you. So we're still working with a vendor to get off of the mainframe. That work is scheduled to be done by the end of September currently of this year. And, again, that's that foundation that we're laying. And once that foundation is in place, we have a list of other projects that we're planning on doing afterwards with that additional funds. How
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 6:46
much money have we already spent on trying to get the modernization done? I don't. Do you have that figure? It's approximately $14 million. $14 million. and with this additional money that you're getting this 20 million is that going to just get you off the foundation or is it going to move it further down the road yes ma'am it is going to
▶ Play Suggest a correction Report an error
Speaker 35 7:08
move it down the road we affectionately call it bells and whistles which is a list of things like auto adjudication better ways to detect fraud in the unemployment claim process to better protect that trust fund there's a list of items okay do we have an
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 7:22
estimated eta when that project's going to be finished unfortunately it's going to be several phases um so we have
▶ Play Suggest a correction Report an error
Speaker 35 7:28
the first phase is to get off the mainframe then we have some additional things that need to be moved into the cloud our existing tax 21 system which is the how the employers interface with our system so those are two big things um and then we're at the same time working on the employer interface the wage verification system for claimants etc and then after that there is an appeal section so our estimate right now is about two more years but unfortunately we are a little dependent on staff and keeping adequate IT resources which we all know is a challenge okay thank you yes ma'am Mr.
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 8:03
Chair I'll get back in the queue because I have another Out of the
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 8:13
Representative Vaught and Senator Hester Are there questions for Department of Commerce? I guess Hester left the room Alright, you guys are dismissed You don't have anything for them Alright, Representative Vaught It's a B2L Department of Public Safety State Police don't you all jump up at one time now if you would introduce yourself for the record and
▶ Play Suggest a correction Report an error
Representative DeAnn Vaught Unverified 8:58
And Representative Vaught, you're recognized for your question. Karen Perry, Department of Public Safety, Chief Financial Officer. Thank you, Mr. Chair. So I see it's $2 million on a traveling fitness trailer.
▶ Play Suggest a correction Report an error
Speaker 52 9:17
Is this correct? No, not just a trailer. There's other items,
▶ Play Suggest a correction Report an error
Speaker 54 9:22
too. The fitness trailer is $100,000. and then the other items the professional service cost is for us to do our promotional testing and then we're going to buy tasers and then we also need appropriation for our equipping our vehicles okay so i'm going to
▶ Play Suggest a correction Report an error
Representative DeAnn Vaught Unverified 9:40
have probably two questions in this if we knew this was coming why didn't we put it in whenever we were in session why didn't we ask for the adjustment to be made to the appropriation during session well the
▶ Play Suggest a correction Report an error
Speaker 57 9:53
fitness trailer we just asked for the appropriation last month and we are
▶ Play Suggest a correction Report an error
Speaker 54 9:57
not 100 sure it's going to get here before the end of the fiscal year so we're asking for that to be carried forward and then the other items we were just short in appropriation to make the budget whole and you
▶ Play Suggest a correction Report an error
Representative DeAnn Vaught Unverified 10:12
didn't know that before we while we were in budget hearings during session no okay um and then my second question is can you tell me how this fitness trailer is going to work so i'm probably not the correct person to describe this but
▶ Play Suggest a correction Report an error
Speaker 54 10:30
it's a fitness trailer on wheels that they can carry around the state to um for different depart for our different divisions to use it's all it's for our wellness program so if there's um a catastrophic event for an officer they can take that and um i mean i might just have to get
▶ Play Suggest a correction Report an error
Speaker 61 11:01
the correct wording and get back with you on that if that would be okay on how it's going
▶ Play Suggest a correction Report an error
Representative DeAnn Vaught Unverified 11:08
to be used yeah that would that would probably work it just doesn't make a whole lot of sense i would think that they have places that they can work out
▶ Play Suggest a correction Report an error
Speaker 59 11:18
already within their where they're where they're stationed at is that not correct
▶ Play Suggest a correction Report an error
Speaker 54 11:24
we only have one gym at headquarters and that's for troop school and so this is just to have the
▶ Play Suggest a correction Report an error
Representative DeAnn Vaught Unverified 11:31
flexibility to use around the state okay i'm still not sure i agree with
▶ Play Suggest a correction Report an error
Speaker 64 11:40
any of that but thank you ma'am senator hester is
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 11:45
state police who you want to talk to okay you're dismissed thank you represent Kavanaugh mine is for shared services we have someone from shared services you looking for procurement or personnel represent Kevin both of them okay if you guys would introduce yourself for the record and
▶ Play Suggest a correction Report an error
Speaker 74 12:44
represent to Kevin all you recognize thank
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 12:47
you James Caldwell CFO for TSS Courtney Traylor chief of staff TSS thank you my first question for you is going to be on B2E, which is for the $2 million for the technical staff. Can you tell me why we need this, what we're trying to do with the
▶ Play Suggest a correction Report an error
Speaker 74 13:07
technical staff? This is to implement and upgrade to the onboarding to version 2.0 for AR careers, and they're going to help assist with all of the technical implementation of that. Okay, and how long is this going to be? It should be a one-year project because it's got to be done before the, before July 1 of next year. Okay, so this is just
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 13:33
for a one-year contract for two million dollars? Yes. Okay, and on F, it's similar, but it's for eight million dollars, and it says for project management and technical staff. Yeah, that
▶ Play Suggest a correction Report an error
Speaker 74 13:44
is for the Ariba e-procurement software that also needs to be done by July 1 of the next year. Okay so when we
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 13:53
were going to move over to these new with this included in your budget that you already had this eight million dollars and this two million dollars ten was that already included anywhere in
▶ Play Suggest a correction Report an error
Speaker 74 14:05
anybody's budget or is this additional? No the Ariba we had asked for last year in December and got the appropriation but the project had to continue and we just unfortunately i didn't know that i needed to submit the letter to add it to our appropriation i know that going forward and then the opm one just came up within the last two or three months so it was already in the middle of session and it was almost almost over by the time we knew we needed it so we didn't include either
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 14:35
one of these in our budgets even though they were working projects
▶ Play Suggest a correction Report an error
Speaker 74 14:39
and we didn't the opm one hasn't started yet it's going to start july 1 we have a contract in review for
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 14:45
that uh later today yeah but when you were projecting did you have an appropriation y'all didn't ask for that appropriation during the budget hearings i guess
▶ Play Suggest a correction Report an error
Speaker 79 14:53
that's what i'm asking i didn't we didn't know about the opm project the
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 14:58
areba one no we did not ask how did you not know uh eight million dollars we literally got out of
▶ Play Suggest a correction Report an error
Speaker 79 15:06
session in april the eight million dollars we knew the the opm the two million we did not know that project
▶ Play Suggest a correction Report an error
Speaker 74 15:12
was going to happen until about a month and a half ago the Ariba that was my fault I didn't submit the letter to add it to our budget okay we found out about it in December shortly
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 15:25
before the session started okay how do you not know that you need two million dollars you only know in a month and a half how are we not looking forward more
▶ Play Suggest a correction Report an error
Speaker 92 15:38
than a month and a half we knew that we needed to upgrade our product that we have for opm but i don't think at the time we had identified which necessarily the vendor or the path that we were going we were trying to look at any internal enhancements we could make to continue with the current products but then we and and trying to keep aligned with the s4hana project that goes live july 1 we then realized we needed to upgrade and do some major improvements to the products that we
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 16:09
currently use okay again I'm going to ask how do you not know that except for a month and a half ago because that's not planning if you're just flying by the seat of your pants and decide a month and a half ago that you don't have the expertise to do something that you knew has to be finished by July of next year that's not management that's flying by the seat of your pants so my question is how do we not know and project these things especially when we're just coming out of session and I think that we knew
▶ Play Suggest a correction Report an error
Speaker 92 16:46
there was a project I don't think we knew of the scope of what that project was going to be and what it would entail specifically so I think until we knew that we weren't prepared to ask for anything until we had better information
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 17:03
okay again I'm gonna say it's not real management skills when you can't project that you don't have the internal skills to do something and you know you're gonna have to come here and ask for millions of dollars after session it's not management thank you
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 17:26
I see no further questions. You guys are dismissed. Department of
▶ Play Suggest a correction Report an error
Senator Jonathan Dismang Unverified 17:33
Corrections? Not corrections, I'm sorry, public safety. Public safety, maybe DFA. I've got questions. I want to circle back to B2J, and then I believe it's B2L. B2J, just as you all are considering who should come, I would just like a recap. I'm assuming this is the reimbursable portion of the medical marijuana money that's been collected on the privilege tax. I would like to know how much of that is being transferred inside this request on B2J and kind of just how that process works because I don't think we fully know on this side of the table. I don't like anybody who wants to answer those questions.
▶ Play Suggest a correction Report an error
Speaker 105 18:54
Jim Hudson, Secretary, DFA, if I'm recognized, Mr. Chairman. Yes, sir. Okay. I think we can get you a breakdown. So far, it's 1.3 that has been claimed against that reimbursable allotment. By the crime laboratory? By the crime laboratory, yes, sir. For this fiscal year? Yes, sir. Okay. And we can
▶ Play Suggest a correction Report an error
Senator Jonathan Dismang Unverified 19:12
get you a detail on each one of those disbursements. If you don't mind, how does that work? How do they claim reimbursement? Because we've got a historical kind of look at the agencies that are allowed to claim reimbursement. it has grown not not so significantly in 2023 and 2024 but prior to that it grew pretty pretty had a pretty good clip so I'm just what what are those reimbursements look like how do they submit again I'm not opposed I'm just yeah it's more curious or curiosity to understand the process for that yeah
▶ Play Suggest a correction Report an error
Speaker 110 19:41
rather than I speculate how about I get more details and we send you a narrative just describing what that
▶ Play Suggest a correction Report an error
Senator Jonathan Dismang Unverified 19:47
process is okay that would be great uh because and if you don't mind let's If we're going to do it, let's do it for ABC, let's see, Tobacco Control, ABC again, Department of Health and Crime Lab. All the polls on that? Yeah, let's just take a look at it and see how they're making requests and how it gets transferred out. Yep. All right, thank you. Yep. The other was back on the public safety, and this is on that mobile fitness unit. And it's more or less, this has been, you know, two meetings in a row. If you haven't kind of picked up on it, I don't think members are generally excited about what we're talking about doing with this mobile unit. I personally don't understand how one trailer going around the state is going to be productive for anyone's long-term health fitness. I don't understand what the deal is, And I would much rather be buying, you know, patrol units than I had this. So can you help me understand why this is so important that we do this? And I think you've answered some of the questions, but I still don't think anyone understands how this thing is going to work and really how it's going to be
▶ Play Suggest a correction Report an error
Speaker 61 21:08
productive. I think I'll need to bring Chuck Lewis to speak on it.
▶ Play Suggest a correction Report an error
Senator Jonathan Dismang Unverified 21:14
On the trailer? sir if you if you
▶ Play Suggest a correction Report an error
Speaker 115 21:19
want to answer questions about a mobile fitness trailer
▶ Play Suggest a correction Report an error
Speaker 116 21:23
you're you're welcome to i'm probably the last person i'll be talking about
▶ Play Suggest a correction Report an error
Speaker 120 21:31
again jim hudson secretary dfa i asked is there somebody here and apparently they're not here today when this request came across my desk uh last month i had the same questions that y'all apparently raising as well and the explanation that i was provided was that this would be used also not in addition just the critical incident response but when they do some activities in the field pt activities that are for a particular troop that provides the equipment and facility for them to be able to do that so it's it's less about kind of having a mobile gym and i think that the the labeling of it's kind of getting away it really is i think part of just their overall professional development on the PT side of things that was the responses the department provided to me when I asked about it I think all of us would be very
▶ Play Suggest a correction Report an error
Senator Jonathan Dismang Unverified 22:21
curious to see this mobile fitness unit whenever we get it in in in state yes because I again I mean fitness is all about a routine and being repetitive and something that can only be at one place in the state serving very clearly a limited number of people right I just have a hard time understanding the benefit i mean i we need vehicles and we need lots of other things i just want to make sure this is hitting the priority where it needs to be for the state police yes sir all right thank you see you know for the questions on b2
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 22:55
do i have a motion do i have a second i have a second all those in favor say aye all opposed ayes
▶ Play Suggest a correction Report an error
Speaker 17 23:07
have it Mr. Billy, if you would. Thank you,
▶ Play Suggest a correction Report an error
William Parrish Unverified 23:12
Mr. Chair. We're in B3. B3 is the fiscal year 26 continuation of fiscal year 25 appropriation. All items on this schedule
▶ Play Suggest a correction Report an error
Chair Unverified 23:20
were approved earlier this fiscal year. Agencies on this list are requesting to continue projects into the new fiscal year that starts in July. Staff check to make sure all continuation amounts are at or below what was requested in fiscal year 25. all total agencies requesting 56.2 million in spending authority approved for this year to continue into the new fiscal year any questions from the committee
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 23:47
you have a motion for approval i have a motion i have a second all those in favor say aye all opposed eyes have it with that we'll move on to c c1 thank
▶ Play Suggest a correction Report an error
William Parrish Unverified 24:00
you mr chair we're in c these are American Rescue Plan Act appropriation requests. The first subsection is C1. These are 25 requests. Each request for fiscal year 25
▶ Play Suggest a correction Report an error
Chair Unverified 24:09
is to support a grant from the Arkansas Linking Industry to Grow Nurses Program. That's called Align. It's made to a college or university. Funds are awarded by the Office of Skills Development at the Department of Commerce, and the fund source is a $25 million state award that ALC approved in fiscal year 24 from the state fiscal recovery funds provided in ARPA. C1A is a request from the University of Arkansas Community College at Rich Mountain for $471,000. It's to support their licensed practical nursing program by increasing vocational center aid and offsetting costs of offering the program. C1B is on page 3, University of Arkansas Community College at Batesville, $224,000. Pay for salaries and supplies for hosting the Align program. The request notes that this grant will focus on high school students who intend to pursue a nursing career. C1C is on page 5, North Arkansas College, $688,000, is to deliver an LPN program at vocational centers in Harrison and Leslie. C1D is on page 7, South Arkansas College, $396,000, also to carry out an LPN program. C1E is University of Arkansas East Arkansas Community College, this is on page 9, it's $54,000, To address the budget deficit between the vocational center aid based on LPN enrollment and the fixed cost of offering an LPN program Next item is C 1 F. This is on page 13 Arkansas State University B.B. 609,000 is to offer an LPN program Last one is C 1 G Arkansas State University Newport on page 17 It's for $428,000 and it's also to deliver an LPN program. Mr. Chair, those are all the Fiscal Year 25 ARPA requests. Any questions on C1? Seeing
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 25:59
none, do I have a motion for approval? Do I have a second? I have a second. All those in favor say aye. All opposed? Ayes have it. C2, please.
▶ Play Suggest a correction Report an error
Chair Unverified 26:12
Thank you, Mr. Chair. We're in C2. these are fiscal year 26 requests for arpa uh first one is c2a department of health it's 150 000 is to provide an electronically electronic capability for wick when using or making payments in the farmers market nutrition program c2b is on page five this is department of health 24 million address workforce challenges by hiring new staff and retaining current staff and do improvements to the workplace such as training professional development and improving workspaces
▶ Play Suggest a correction Report an error
William Parrish Unverified 26:44
I'll note that the agency has a handout that replaces what's in the packet for pages 6 through
▶ Play Suggest a correction Report an error
Chair Unverified 26:49
13. That handout is at your desk and is labeled C2B replacement. So now we'll go to page 14. On page 14 is C2C, Department of Health. It's for $8 million in appropriation. This is to enhance technology to provide WIC participants with a more modern and streamlined experience, such as online appointment scheduling, real-time data and analytics, and having the ability to allow participants to upload documentation prior to WIC certification appointments. Next item is C2D on page 17. This is for the Department of Health. It's $587,000. It's to support labs in efforts to introduce or extend advanced molecular detection. Next item
▶ Play Suggest a correction Report an error
William Parrish Unverified 27:30
is C2E, Department of Health, $2.9 million. Provide education to health care providers across the state and support activities to detect, monitor, mitigate,
▶ Play Suggest a correction Report an error
Chair Unverified 27:37
and prevent the spread of disease in health care settings. The last item is C2F. This is Commerce Division of Workforce Services. This item has been pulled by agency request. Mr. Chair, those are all of the Fiscal Year 26 ARPA requests.
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 27:53
Any questions? Representative Kavanaugh. Thank you. This is
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 27:56
the Department of Health, please. Can we get someone
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 27:59
from the Department of Health? she didn't say if you guys would introduce yourself for the record and representative you're
▶ Play Suggest a correction Report an error
Speaker 135 28:19
recognized thank you don adams chief of staff health department matt yelmore department
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 28:23
of health thank y'all this is on c2b um where you're asking for a total of 24 almost 25 million dollars um can you explain what you're going to be doing with this
▶ Play Suggest a correction Report an error
Don Adams Unverified 28:37
yes ma'am uh representative Kavanaugh we received that grant I would say approximately three years ago it was a little over 30 million dollars it's a very broad-based grant that we're allowed it's similar to a block grant that we're allowed to use a lot of discretion on how we use it and we're using it throughout the department IT lab epidemiology and many areas of the department we're using this we do have some it contractors that are helping us with upgrading our it infrastructure we have again some of our lab supplies and equipment and just various things in the department we've also bought some blood pressure kiosks for all our local health units for the public and the staff to use so a variety of projects and i think we have two years remaining on this this grant okay so the grant was three years ago did you say I believe two and a half okay we're just now using it no ma'am this is a continuation but because we made some changes to the budget and some
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 29:49
of the scope we were required to list this separately from the continuations okay and then on your regular salaries when this ARPA money's gone what happens with
▶ Play Suggest a correction Report an error
Speaker 135 29:57
those regular salaries yes ma'am there's a possibility we'll have carry forward authority they also had discussed that this grant
▶ Play Suggest a correction Report an error
Don Adams Unverified 30:02
will continue we're uncertain at this point but we will not be asking for more money to continue those
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 30:09
salaries okay so if you can't get more money are these
▶ Play Suggest a correction Report an error
Don Adams Unverified 30:13
salaries going away it's possible it depends on other vacancies we might have in the department that we can move or other funding that might be coming in but if we have to reduce force
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 30:24
then that's what we'll do Okay. And one final question is, you've got other indirect for like $3.1 million. What is that?
▶ Play Suggest a correction Report an error
Don Adams Unverified 30:32
Indirect is the amount that is a percentage of the salary and fringe that we can take from the grant that's allowed. It's an agreement with our federal funders to fund things like IT, HR, finance, and all the administrative functions within a department. That would not be in your operating
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 30:47
expenses? No, ma'am. That would be separate for, like, travel
▶ Play Suggest a correction Report an error
Don Adams Unverified 30:50
and contracts and those sorts of things. Okay. Indirect is a separate item. Okay. Thank you. Yes, ma'am. Any further questions on C2?
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 31:03
Seeing none, do I have a motion for approval? I have a motion. Do I have a second? I have a second. All those in favor say aye. All opposed? Ayes have
▶ Play Suggest a correction Report an error
William Parrish Unverified 31:20
it. Move on to C3. Thank you, Mr. Chairman, C3. This is a fiscal year 26 continuation of 25 appropriation. All items on
▶ Play Suggest a correction Report an error
Chair Unverified 31:26
both schedules were approved earlier this fiscal year. Agencies on these lists are requesting to continue projects into the new fiscal year that starts in July. Staff check to make sure all continuations are at or below what was requested in fiscal year 25. All total agencies requesting $261 million in four positions in direct federal awards. That's in the first chart. and then $467 million in state awards in the second chart. The last two pages are related to the Emergency Aid Relief to Rural Hospitals Grant Program. These are items number one through eight that are requested to be continued in the second chart from the state awards. Along with continuing the appropriation into the new year, DF&A is requesting to amend the criteria of granting funds to the hospitals. Working with the hospitals and the consultant, Alvarez Marsal, who was hired to evaluate the financial health of the hospitals and design this program, DFA proposes five options to select a new set of metrics for the next round of payments. The last page shows the status of payments that have been made as of January 31st and what remaining balance is available to each hospital if they hit determined metrics. Representative Kavanaugh, are you recognized for
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 32:41
a question? Thank you, Mr. Chair. This is going to be for the AEDC, or was it, yeah, Broadband Office.
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 32:57
If you would, sir, introduce yourself for the record. Representative,
▶ Play Suggest a correction Report an error
Chair Unverified 33:05
you're recognized. Thank you. Jake Winley, Legislative Affairs, Department of Commerce, and we are going to be joined by Glenn Howey. director of the State
▶ Play Suggest a correction Report an error
Speaker 149 33:22
Broadband office all right good morning Glenn how we
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 33:34
state broadband director and thank you my question is I guess we had approved approved 153.4 million it looks like you spent 39.5 so far that leaves you about 100 and almost 11 million available when's the last day we're supposed to spend this money yes ma'am good question because there's a lot
▶ Play Suggest a correction Report an error
Speaker 155 33:53
of there's been a lot of different rounds right in the grant program over time uh from
▶ Play Suggest a correction Report an error
Speaker 152 33:58
from what you're calling out i think you're referencing the capital projects fund cpf which was internally we call it round three uh so we have to those projects have to be completed by the end of next year and all indications are that everything is on track i think close to 10 of our 20 projects are already completed in those and so what you're seeing is a delay a little bit in the reporting because as projects are built out and the construction is done sometimes the payouts are a little delayed because we have to go back and review the financials and so forth so the payments to the providers are a little bit delayed but but the project construction themselves is going very well in round three but in short the answer to your question end of next year on
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 34:40
that particular bucket and on the capital outlay you're going to spend all this 110 million by the end of next year that's the plan yes ma'am what's the plan if you don't could you be more specific in your question what's the plan if you're supposed to spend this
▶ Play Suggest a correction Report an error
Speaker 155 35:03
money by a certain date and you don't spend it what's the plan
▶ Play Suggest a correction Report an error
Speaker 152 35:07
yeah that would be a question that U.S. Treasury has not clarified for us just yet if we have providers that are 75% complete let's say with their project and it's the end of next year I know that's a question that U.S. Treasury is actively working through that we have not gotten guidance on just yet now at the moment everything appears on track from our tracking again we've had half of our projects already completed from a construction standpoint with about 10 more to go and a lot of those are already at 50% done. Um, but I mean, to be honest with you on that, it's, it's something we would have to await for additional guidance from U
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 35:39
S treasury. Okay. Can you get for us by the meeting on Friday, the actual amount that you've spent, because we're only showing that you spent less than 40 million of this 153. So if it's been going on going and you're saying you're going to spend the rest of the 111 in a short period of time, if you're saying the reporting is not correct can you get us the correct amount that you've already funded out of this sure we can get a breakdown so i
▶ Play Suggest a correction Report an error
Speaker 152 36:04
think what i'd like to provide you on friday not only right the amount that has been spent uh if there is an increase in that dollar amount but also a list of projects where let's say let's say that the the they're completed but they're not yet paid out i think that's an important number for you to know right to get a better understanding of what's really outstanding versus what's really not and we'll
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 36:26
work for that on friday yes ma'am okay and also So you have another, what, $23 million, and that is for the Arkansas Rural Connect program. And if I'm reading this correctly, you have spent $0.14. It's item number 36.
▶ Play Suggest a correction Report an error
Speaker 155 36:57
yes ma'am from from my recollection this particular line item is from one of the
▶ Play Suggest a correction Report an error
Speaker 152 37:19
slurf rounds of grants and so again I think by Friday we can look again at the exact dollar amounts on
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 37:26
that for you okay when does it have
▶ Play Suggest a correction Report an error
Speaker 152 37:28
to be spent slurf is also an end of next year okay 26 calendar 2026
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 37:33
have we really not spent any money in that or is this a misreporting
▶ Play Suggest a correction Report an error
Speaker 155 37:38
it could be a misreporting i will look into
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 37:40
it yes ma'am okay so you don't know if you spent money
▶ Play Suggest a correction Report an error
Speaker 152 37:44
out of this fund or not we spend money all the time we
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 37:47
spend money on the cpf projects i know we spend money all the time we
▶ Play Suggest a correction Report an error
Speaker 152 37:50
spend it every moment of every day yes ma'am uh we have a handful of slurf projects that are still underway i think there's like two or three of the surf projects that are still being built out at the moment so that's likely where the balance of this is and i'll confirm that for you
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 38:03
by friday okay well the report only shows i'm going to say again that you spent 14 cents apparently i've been informed it is a
▶ Play Suggest a correction Report an error
Speaker 152 38:17
typo we spent 14.2 million okay 14.2 okay that's a little different than 14 cents but if
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 38:23
you could give us the rest of the information on Friday also sure thank you represent vault your question for these guys I know sir okay hold on one second
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 38:39
sir love is your question for these guys and we'll go ahead
▶ Play Suggest a correction Report an error
Senator Fredrick J. Love Unverified 38:44
and recognize you thank you mr. chair Glenn let me just ask you so at the end of this are we going to have a full map of Arkansas and what projects are completed where where the I guess where the infrastructure is laid out over the state and also kind of the speed I want to kind of I mean we're spending a lot of money but we want we really need to know if our Kansas are being connected so can you just touch on that just a little bit because because I would really like a map of of actually the projects that we're doing, where they're going, and also kind of what capacity
▶ Play Suggest a correction Report an error
Speaker 155 39:24
that we're building out? No, Senator, that's a great question. We've worked very hard over the last year or so to produce better maps for the state. On our website currently we have construction maps available for the first three rounds that we've done that are mapped out, all the project footprints, and also a percentage completion status report for all of those. That's publicly available right now. And on the broader map that we do have, again, that lists every location, all 1.3-ish million locations in the state, all of the Internet access that's reported available at every single location across the state. It shows which locations have access, which ones don't, which ones have been funded, et cetera. So I can put together probably a one-pager for everyone here that walks everyone through the current maps we do have available. And I think it's very informative, but we can put that out for you. Okay.
▶ Play Suggest a correction Report an error
Senator Fredrick J. Love Unverified 40:13
All right. That would be good. Thank you.
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 40:20
Absolutely. chair see enough for the questions you guys you are dismissed representative
▶ Play Suggest a correction Report an error
Unknown speaker 40:24
vault who would you like to be at the table DHS medical service DHS medical services everyone's scared of the table today
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 41:06
if you guys would introduce yourself for the record representative
▶ Play Suggest a correction Report an error
Speaker 172 41:17
you're recognized good morning Janet Mann deputy secretary and Medicaid
▶ Play Suggest a correction Report an error
Speaker 174 41:22
director DHS Andy Babbitt DFA state
▶ Play Suggest a correction Report an error
Representative DeAnn Vaught Unverified 41:24
controller thank you for uh coming up to answer the questions thank you Mr. Chair for recognizing me I'm looking at number one through uh it looks like it's through eight maybe and it's several hospitals it looks like they received funding but they've not spent I mean a lot of them have not spent not even a dime of what we've sent can you explain why they've not spent and it looks like it would be hospitals that are in rural areas that would need the money but
▶ Play Suggest a correction Report an error
Speaker 177 41:59
maybe explain to me why they've not spent the money so i'm going to go back a little bit and do a little bit of history here um there the rural hospital program was put together to seek sustainability at the rural hospitals so we engaged hospital experts through alvarez and marsal to work with the hospitals develop a plan that included metrics so the hospitals that have met their metrics have been paid out those that have not met the metrics have not been paid out so what you see here is those hospitals and we're asking for a continuation on the uh i believe it's the second to the last page we have a narrative there and we're going to open the plan up for the experts to work with the hospitals to seek out one of those options and what we're seeking today is just to move this forward so that the hospitals and the consultants can work together in a rapid fashion see if they have met the metrics under the new plan and then disperse some money to them so that's a short
▶ Play Suggest a correction Report an error
Speaker 105 43:09
if i can represent involved jim that's the secretary dfa you know it's it's not totally opening
▶ Play Suggest a correction Report an error
Speaker 110 43:15
it up what we're doing is creating flexibility amongst the metrics that were already identified almost 18 months ago some hospitals had difficulty meeting the metrics that they had selected in their sustainability plan and conversations with them and with the consultant you know and obviously with members as well you know what we wanted to do was provide greater flexibility let them go back and reselect metrics that would you know potentially allow them to be able to meet the threshold for being able to receive payment the idea is that we want to be able to get the money out to them but
▶ Play Suggest a correction Report an error
Speaker 120 43:51
we also need to have assurances that the plans that they're working create a pathway towards
▶ Play Suggest a correction Report an error
Representative DeAnn Vaught Unverified 43:59
sustainability do we know when they will have i'm sorry mr chair follow up sorry Well, we know when. Do you have a cutoff date of when they'll have to meet these new metrics or their do-over is done? Yeah,
▶ Play Suggest a correction Report an error
Speaker 118 44:11
the time period, I believe, has already passed. It's
▶ Play Suggest a correction Report an error
Speaker 110 44:14
just a question at this point of them reselecting the metrics and getting us the data, and we just need to review the data and make sure that, indeed, they did clear the hurdle. So we're talking about just a
▶ Play Suggest a correction Report an error
Speaker 120 44:24
timeline for administrative processing at this point. My commitment is we'll move as rapidly as we can to get the money out. Thank you. Thank you, Mr. Chair.
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 44:37
Can you kind of explain, you kind of mentioned there'd be some new metrics or the ability for them to pick different metrics. Can you walk us through what that means and why would they want to abandon their original metrics they chose? Yes, sir.
▶ Play Suggest a correction Report an error
Speaker 110 44:52
So the metrics, you know, they just, in some cases, were not able to clear it. You know, they weren't able to achieve the hurdle in order to be able to receive payment. However, they could, you know, clear the metrics on other ones. And so what we were really looking for is not necessarily kind of trying to find an obstacle to payment. You know, we wanted to see, is there improvement? Are they moving in the right direction? And so it's not creating a new list. It's the same list that we've had in place since, you know, the end of 2023. They just get to reselect from the list
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 45:30
which ones they're going to go with. represent kavanaugh is your
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 45:35
question on this subject you are recognized thank you mr chair i guess with the history i think that we had we had as legislators concern that we were going to use this arpa money and give to hospitals that were not financially sustainable that was our goal all along um and i've had conversations with hospitals on this list they're not sustained they're not financially sustainable and they're needing the money to stay open so my question is when we're changing these matrix these metrics are we changing them just to put a band-aid on a problem and if that is so and i understand i'm a big proponent for rural hospitals but our community took ownership of our hospital we passed a sales tax to help it stay open because we saw on the local level the need and importance of it if the state is going to be in a position where we're going to bail out rural hospitals every time they're not financially sustainable then why don't we start that program and quit changing the ARPA so they can get money but a band-aid for six months doesn't fix a problem that's an issue I have yes ma'am I think
▶ Play Suggest a correction Report an error
Speaker 110 46:59
you know that the governor's view is also that we should not be just you know giving money away that we ought to be working toward a path to sustainability previous general assembly immediately preceding general assembly when we work y'all work with us with the governor to establish what were going to be the criteria for that. And that's when we brought in the consultant to help us look at water metrics that tell us that a hospital is improving in their financial condition. Not necessarily they're getting completely out of the woods, but they're moving in the right direction. Because frankly, it's not enough money, I think, to totally change somebody's situation, you know, completely. But it's enough to get them jump-started moving in the right direction you know what we felt was in conversations with other members and with the hospitals and with the consultant was maybe they didn't have full visibility into what metrics best pointed toward them moving in the right direction so rather than us i think being just a little too narrow in our focus we wanted to give them the opportunity to make the case to us you know particularly in the cash position is your cash position improving uh your your ar collections is it improving the sorts of things that point to getting out of a liquidity crisis and moving toward financial health and if they can make that case then we would like to
▶ Play Suggest a correction Report an error
Speaker 120 48:17
see the money to be released to them so they can continue on the path they've
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 48:23
already started down. But if they can't show that that six months is going to make them financially sustainable is it a good use of ARPA funds and again I'm going to say I'm a proponent for rural hospitals and if we think the state should be there helping support rural hospitals then that's something the state needs to look at but are we given money i guess used for something that might better be used somewhere else for a program that is sustainable and if the state wants to help with rural hospitals let the state step in and help
▶ Play Suggest a correction Report an error
Speaker 183 48:59
with rural hospitals so i think we are helping rural hospitals you know this is a 60 million dollar program
▶ Play Suggest a correction Report an error
Speaker 110 49:05
we have already dispersed over 70 percent of the money so you know it's successful you know for for some hospitals we have some really good stories like for example for hospitals that converted to emergency access hospitals they're there they're open they're available to serve the community in a way that meets that need that community's needs so we're dealing with a minority of the total population of hospitals at this point we're not looking to disperse money to hospitals that are just going to close in six months. That's part of the process that we have in front of us is let's make sure that this hospital is going to have a pathway towards sustainability. And if it's not, we won't pay the money. At this point, the ARPA guidelines from the federal government, we can't take money and recommit it someplace else. That commitment deadline's already passed. So if we're not going to give it to the
▶ Play Suggest a correction Report an error
Speaker 189 49:55
rural hospitals if they've demonstrated that they have cleared the metrics, then it's going to go back to the treasury. Which might
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 50:02
not be a bad thing. so my question is when will we know those matrix new matrix they will tell us
▶ Play Suggest a correction Report an error
Speaker 111 50:09
which metrics they're going to pick so it's already defined list and they need to give us the data
▶ Play Suggest a correction Report an error
Speaker 110 50:16
that establishes where they're at relative to the to the metrics you know i don't think that's a process that's going to take you
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 50:28
know much more than a month for us to look at that and go through that okay all right thank you yes ma'am so looking through the list there's quite a few that were number ones which were basically going to transfer to that emergency hospital status looks like we've issued initial disbursement and second disbursement to all of the number ones but it's my understanding in a meeting just a week ago not a single hospital has been approved through cms to be an emergency room hospital and i'm not saying that totally correct but am i right or wrong in that assessment and my second question to this so you can be thinking this all the way through why would we have dispersed our second payment to those folks if we don't have
▶ Play Suggest a correction Report an error
Senator Breanne Davis Unverified 51:19
that approval yet so the rural it's the rural emergency hospital designation is the term and we are working with cms to have that approved through the medicaid program it right now there is a discrepancy with the medicare designation being transferred into the medicaid code of federal regulations so we have not gotten that approval yet and the reason we are working diligently to get it approved is because we would have to pay hospitals differently under medicaid than medicare and it could impact their operations obviously because they would not be considered a hospital anymore they would be considered an outpatient clinic so we have been working through that with CMS. We, um, state of Arkansas is not alone in, in that issue. Several other states are working with CMS to try to obtain the correct language for that approval. It's I think to elaborate on that
▶ Play Suggest a correction Report an error
Speaker 197 52:12
too, Mr. Chairman, the, the timeline for making the payments, the first one,
▶ Play Suggest a correction Report an error
Speaker 110 52:17
the second one was established, you know, when the program rules that, you know, we brought for review and that were approved. I think those were, were time factor that you got the payment after a certain period of time the second payment there are two components to the conversion to the rural access hospital one is getting the cms approval so we get the additional revenue flowing into that hospital the other part of it is right sizing their expense base which is a large part of the problem and so they've been able to make some of those adjustments already so they're not getting the full benefit of the conversion but they're getting some
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 52:56
of those benefits already so what metric did they meet to obtain the second disbursement it's
▶ Play Suggest a correction Report an error
Speaker 180 53:01
just yes sir it's just the selection of converting and then after a period of time which is how long how are they
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 53:07
going to convert when medicare hasn't even approved the conversion at all in the
▶ Play Suggest a correction Report an error
Speaker 177 53:14
first place let me let me take a stab at this not all of them converted to rural emergency hospital some converted to critical access hospitals so that designation all of them have received a second they all have yes sir they have disbursement but i want to differentiate on that list on the track ones between those that are reh rural emergency health and the critical access the ones that have converted to critical access they have made that change over and we have made that disbursement for the Rural Emergency Hospital, since that was a new designation, that was simply that they have gone through the process, filed, and received notification back from the federal government that they are eligible for and entitled to. That's the way I understand the process.
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 54:10
I just think I'm going to have to understand how we made that determination to send the money for the second disbursement when we know we don't have a designation yet. And I'm going to
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 54:29
go back to Representative Kavanaugh. Well, mine's very similar in lines. So we have hospitals that took one of the options, and one of the options was to be a rural emergency hospital. But now they're telling us they're having possible problems with having that designation. because of the way they may be paid so i guess my question is have we created a bigger burden by doing this when there was no designation available on the federal side
▶ Play Suggest a correction Report an error
Senator Breanne Davis Unverified 55:04
we have continued to pay the hospitals in their current designation while they are seeking that approval um so i'm i'm trying to think through your question well my question is
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 55:18
you can go through the process they come back said no we're not going to approve it but we had these hospitals switch to this rural hospital emergency designation when they've done that are they then going to have to go back
▶ Play Suggest a correction Report an error
Senator Breanne Davis Unverified 55:36
and switch to something else we hope not i believe i'm going to look i'm looking for um elizabeth pitman to make director of medical services when we adopted the rural emergency hospital designation in the state of arkansas we were trying to follow the critical access hospital guidelines to protect the hospitals as they were applying for this so that payment mechanism is in effect and in being used and Elizabeth will correct me if I said anything wrong. Yes hello Elizabeth
▶ Play Suggest a correction Report an error
Speaker 203 56:02
Pittman Division of Medical Services Director and if you need if I miss anything you've asked representative please
▶ Play Suggest a correction Report an error
Speaker 205 56:08
just repeat your question. So yes we are still treating critical or the rural emergency hospitals as critical access hospitals for purposes of our base payments that is accurate so they get that more favorable base payment for a critical access hospital however because CMS has told us we now if they've received that designation must treat them as clinics they cannot be part of the upl model so they have been pulled out of that supplemental payment model for critical access hospitals and we're working through that issue with cms
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 56:38
right now okay but if we as a state gave them that option so here's your mate here's our you know matrix and y'all pick which one of these that y'all are going to try to went through and we've asked all these people to switch to these hospitals now we've created this problem where they can't get the supplemental payment I mean have we created a bigger problem for those rural hospitals no
▶ Play Suggest a correction Report an error
Speaker 197 57:03
ma'am I again I think what we the point we ought to begin with
▶ Play Suggest a correction Report an error
Speaker 110 57:09
is the previous situation was not working they were not financially viable and so we didn't create a situation we responded to a situation and so you know if they were to have to wind back you know they're not like winding back to a better situation that they gave up it was a bad situation to begin with and the second thing too
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 57:35
I'd point out is that we didn't make anybody do anything yes sir I understand but it was one of the options we gave them and they felt that's what they needed to do so they could fit into this and get these supplemental payments yes ma'am I guess my concern is if we don't get this worked out with CMS mess. We're back where we were with a problem with these hospitals being financially unsustainable and we've given them this money. Unfortunately, that is not going to keep them afloat. So I guess I'm back to the same question I was earlier. What are we going to do then? Is the state going to step in and say, since you're not financially sustainable, this is what we're willing to do. And I guess the final question for you really is, when do we have any estimation when CMS is going to
▶ Play Suggest a correction Report an error
Senator Breanne Davis Unverified 58:27
give us a final answer? We don't have an estimation of that date, but it was a very large topic of conversation last week when we were meeting with CMS and other states were also. We're hoping soon. I wish I could give you
▶ Play Suggest a correction Report an error
Representative Frances Cavenaugh Unverified 58:41
a date. But CMS understands the problem that we're, with rural, not just Arkansas, but rural America, they understand the importance of getting us an answer. Yes, they do. Okay,
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 59:05
thank you. I'm just worried about, by extending this six months, we're extending the problem into the future. and i know for a fact some of these hospitals are sustainable they're not closing they're not going broke but they do need the money and looking at the calculation on the baseline when you did an ft a ft per aob calculation they they met the metric but they missed it on day 30 30 versus day 15 so it depends on what day of the month you actually called and said hey i'm pulling this calculation so my problem is are we actually fixing that problem or coming up with an average that fixes that problem so these folks get the money that they're supposed to get yes sir and how do we have a guarantee of that and i'm fine with this and i want the money given to the hospitals for the record but i don't want to sit here and approve this and then come back six months six months from now and nobody got a second disbursement and then we're doing it again and we're doing it again and then the money goes back to the feds because we didn't do what we needed to do to get it to their hands
▶ Play Suggest a correction Report an error
Speaker 197 1:00:11
in the first place yes sir and any correct me if i'm wrong here make sure i'm saying this correctly the
▶ Play Suggest a correction Report an error
Speaker 110 1:00:17
six months is already in the books okay so we're not talking about rolling this until december of 2025 so we already have got the additional six months completed
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 1:00:27
it says under option one to extend the 12-month valuation period by six months and it's in bold print from the original
▶ Play Suggest a correction Report an error
Speaker 107 1:00:36
date so it's adding six months on to
▶ Play Suggest a correction Report an error
Speaker 177 1:00:40
the 12 months correct right so representative wardlaw the um the 12 month period would end in december roughly last year um to so by the time we get this approved this month we're basically at the end of our
▶ Play Suggest a correction Report an error
Speaker 173 1:00:56
six month period there was a few of those in that
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 1:01:00
core cohort let me save you some time and be some time because i'm kind of over it when you look at option one two and three and explanations there it talks about time extension it doesn't talk about a smoothing effect it doesn't talk about how we're going to make these metrics work so what i'm wanting to know is what are you doing in this time matrix that you've laid out for us that's going to fix the metrics to where we're not pulling it on day 17 when we should have pulled it on 16. How are we going to pull it correctly to make sure the disbursement takes place? So part
▶ Play Suggest a correction Report an error
Speaker 197 1:01:40
of the issue is, I think, when we originally ran the calculations, we picked a date
▶ Play Suggest a correction Report an error
Speaker 110 1:01:45
that may not have given the hospitals the benefit of work already in progress that they already started prior to us, you know, providing any assistance to them. So we're going to work with all the hospitals and say, you help us understand what's the date that we should begin, you know, working the calculations on. Yes, sir, we will do. We're going to avoid gotchas on this because we do want to get the money moved out. But it feels like that's what we've done for the record. I think the way it was calculated originally was very specific and was not enough dialogue. So I think we're going to fix that this time. Thank you. Do
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 1:02:21
I have a motion for C-3? Do I have a second? All those in favor, say aye. All opposed? Ayes have it. Moving on to D-1. Thank you, Mr. Chair.
▶ Play Suggest a correction Report an error
William Parrish Unverified 1:02:33
We're in Section D. These are Infrastructure Investment and Jobs Act Appropriation Requests. Subsection D-1 are
▶ Play Suggest a correction Report an error
Chair Unverified 1:02:38
the 26th request. D-1A is a request from Department of Commerce, Economic Development Commission. It's for $250,000 in spending authority. They have a grant from the U.S. Department of Commerce to implement the state digital skills plan by addressing barriers to enhancing digital opportunity. D1B is on page two. This is a request from Commerce Economic Development Commission. It's for $7.4 million. This is another grant from the U.S. Department of Commerce to make broadband infrastructure grants to Internet service providers. This will give access to 84,000 homes, businesses, and community anchor institutions, provide digital safety and social media education, workforce development, and produce the BEAD final proposal. D1C is on page three. This is a request from Energy and Environment, Division of Environmental Quality. It's from $402,000, the Spending Authority. They have a grant from the EPA to demonstrate progress toward the national recycling and food loss and waste reduction goals and advance a circular economy. d1d is on page four public service division of state police 37.4 million they have a grant for the national highway safety administration to reduce traffic crashes deaths injuries and property damage d1e is on page five energy environment only gas commission 269 000 they have a grant for the u.s geological survey and interior to replace the roof gutter system and exterior portions of the norman f williams sample library the leaks are compromising boxes that contain core and cuttings uh mr chair we're now going to go to the supplemental agenda this is a separate packet on your at your desk uh supplemental agenda has one item it's a one this is in the ij request for 26 for the division environmental quality and energy environment it's for 30.9 million spending authority they have a grant from the department of energy uh for the weatherization assistance program the request notes that the proposed budget redistributes funds among long items to reflect the salaries and match being reallocated among the Arkansas Energy Office federal grants Mr. Chair those are all the 26 IJ requests Any questions from the committee?
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 1:04:51
Seeing none I think the supplemental agenda reflects how important Robert Breck was to the department and just want to make that note Do I have a motion for D1? I have a second, including the supplemental agenda, by the way, on that motion. I have a motion and a second. All those in favor say aye.
▶ Play Suggest a correction Report an error
William Parrish Unverified 1:05:22
All opposed? Ayes have it. Moving on to D2. Thank you, Mr. Chair. We're in D2. These are the 26th continuation of 25 appropriation. All
▶ Play Suggest a correction Report an error
Chair Unverified 1:05:28
items on the schedule were approved earlier this year. Agencies on this list are requesting to continue projects into the new fiscal year that starts in July. Staff check to make sure all continuation amounts are at or below what was requested in Fiscal Year 25. All total agencies are requesting $492.5 million of spending authority and one position approved for this year to continue into
▶ Play Suggest a correction Report an error
Speaker 126 1:05:45
the new fiscal year. Seeing no questions, do I have a motion?
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 1:05:53
Do I have a second? I have a motion, I have a second. All those in favor say aye. Aye. All opposed? I have it move on to E1 thank
▶ Play Suggest a correction Report an error
William Parrish Unverified 1:06:06
you mr. chair we're in section E this is appropriation and a front transfer request E1 is a request for 25 the Department of Education Division of Elementary Secondary Education has this letter special language allows the department to transfer appropriation after
▶ Play Suggest a correction Report an error
Chair Unverified 1:06:19
receiving approval from ALC it's a 1.8 million transfer from a contingency line to the line dedicated to the Arkansas Public School computer network. It's to update all firewalls at 271 school districts. It's supported by the fund balance in the public school fund. Mr. Chair, that's the request for fiscal year
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 1:06:38
25. Seeing no questions. Do I have a motion? Second. All those in favor
▶ Play Suggest a correction Report an error
Chair Unverified 1:06:43
say aye. Aye. All opposed? Ayes have it. E2. Mr. Chair, E2 is a request for fiscal year 26. It's a letter from the Department of Health Minority Health Commission. The The commission also has special language that allows the transfer after ALC approval. It is a $20,000 transfer from operating expenses to promotional items. The commission is charged with performing broad outreach to minority communities at health fairs, public forums, and awareness events. The transfer provides for purchasing collaterals at these
▶ Play Suggest a correction Report an error
Speaker 14 1:07:10
events. Mr. Chair, that's the request for 26.
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 1:07:14
Seeing no questions, do I have a motion? Motion. Do I have a second? Second. I have a motion and a second. All
▶ Play Suggest a correction Report an error
William Parrish Unverified 1:07:31
those in favor say aye. Aye. All opposed? Ayes have it. Move on to F1. Thank you, Mr. Chairman. Section F, these are restricted reserve fund transfer requests. F1 are the requests for fiscal year 25. F1A is a letter from UAMS. It's a $5.8 million transfer from the various general discretionary majority votes set aside. This is to support a high-risk pregnancy program, a stroke program, newborn screening, the following baby back home program, and a sickle cell program. The appropriation will be requested later in the agenda in the cash fund section. F1B is a letter from
▶ Play Suggest a correction Report an error
Chair Unverified 1:08:00
DFA. It's for $5.5 million. This is a transfer from the various general discretionary majority vote set aside account, and it's to reimburse counties for housing inmates. The appropriation for this will be in J1C in the cash section. Mr. Chair, those are two requests for fiscal year 25.
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 1:08:18
See no questions. Do I have a motion for approval? Do I have a motion? Do I have a second?
▶ Play Suggest a correction Report an error
William Parrish Unverified 1:08:29
All those in favor, say aye. Aye. All opposed? Ayes have it. F2. Mr. Sheriff, F2 is the fiscal year 26 request. F2A is a letter from Department of Education, Division of Elementary and Secondary Education. This is a $90 million transfer from the Children's Educational Freedom Account set-aside. This is to fund EFA accounts for
▶ Play Suggest a correction Report an error
Chair Unverified 1:08:45
the 25-26 fiscal year. Next item, F2B, is a letter from Commerce Economic Development Commission. This is a $25 million transfer from the Economic Stimulus Program set-aside. This is to do site infrastructure grants and economic stimulus activities. Again, the appropriation for this request will be J2D in the cash section. The next item is F2C. This is a letter from Secretary of State. It's a $9.1 million transfer from the capital HVAC upgrade set-aside. This is to work on the system on the north side of the capital. F2D is a letter from Education School for the Deaf. It's a $35 million transfer from the School for the Deaf and Blind set-aside. It's for a new facility containing classrooms, a cafeteria, fine arts, and other common spaces. F2E is a letter from Education Division of Elementary and Secondary Education. It's a $60 million transfer from the Education Facility set-aside. This is to support a financial partnership between the state and public school districts to share the cost of school facilities, construction, and major innovations. F2F is a letter from DFA. This is a $4 million transfer from the various general discretionary majority vote set aside. It's to make grants for drug task force operations. The appropriation request will be in the cash section. F2G is a letter from DFA. It's for $2.9 million. It's a transfer from the various general discretionary majority vote set aside. It's to provide assistance to the Angels Program at UAMS that supports high-risk pregnancies. The appropriation request will be in the cash section. Mr. Chair, those are the, that's all the Fiscal 26 Restricted Reserve Transfer Requests. Seeing no questions, do I have a motion for approval? I have a motion and a second.
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 1:10:27
All those in favor say aye. Aye. All opposed? The ayes have it. Move on
▶ Play Suggest a correction Report an error
William Parrish Unverified 1:10:41
to G. Mr. Chair, Section G is a State Central Services Deduction Request. This is a letter from the CFO. It requests maintaining the deduction on general and special revenues. They fund those agencies supported by
▶ Play Suggest a correction Report an error
Chair Unverified 1:10:51
the State Central Services Fund and it's to maintain that deduction at 2%. Arkansas Code requires the CFO to determine the appropriate percentage deduction between 2% and 3% and then obtain approval of ALC. The letter notes the deduction has been included in the official forecast and provides sufficient funding.
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 1:11:11
I have a motion. do i need a second all those in favor say aye all opposed eyes have it move on to h1 thank you mr chair we're
▶ Play Suggest a correction Report an error
William Parrish Unverified 1:11:30
in the reallocation of resources for the department of human services for flexibility special language allows the department to make four reallocations in a fiscal year to respond to changing client needs and to make the most effective use of the resources authorized. This is their third reallocation for fiscal year 25. On the last page is a table that shows all the transfers. The first table shows appropriation transfers within divisions and totals approximately 39.5 million. This is
▶ Play Suggest a correction Report an error
Chair Unverified 1:11:56
the only category of transfers being utilized for this reallocation. The division of medical services is transferring 35.4 million from the hospital and medical services line item to the private nursing home care line item due to increases in both the client population and the cost of the care. The division of youth services is transferring 4.1 million from the community services appropriation to the residential services and federal child and youth services grants appropriations for increases in the juvenile population requiring a stay in one of the residential treatment facilities. Mr. Chair, this action would be a recommend would be a recommendation to ALC personnel to approve in the regular session agencies were provided more flexibility by allowing them to request reallocation of resources to manage and make changes to personnel so that the appropriation request and the personnel changes are both seen by the appropriate committee the reallocations will be first seen by a peer and then personnel later in the week in a
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 1:12:54
motion for approval I have a second I have a second. All those in favor, say aye. All opposed? Ayes have it. Would that move on to items for review? And the first item under items for review is
▶ Play Suggest a correction Report an error
William Parrish Unverified 1:13:20
I1. Thank you, Mr. Chair. This is an appropriation and or fund transfer request. It's for fiscal year 25. It's for the
▶ Play Suggest a correction Report an error
Chair Unverified 1:13:26
Department of Education, Division of Higher Education. This is a transfer of $405,000 from the Governor's Scholars Program to the grants programs for the Arkansas Future and Washington Center Scholars. The transfers will maximize the utilization of appropriation provided for financial aid programs,
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 1:13:40
according to the letter. Without objection, stands review. Item J-1. Thank
▶ Play Suggest a correction Report an error
William Parrish Unverified 1:13:53
you, Ms. Sherbrick, Section J. these are cash fund appropriation requests j1 are 25 requests j1a is a letter from labor licensing division of labor wage and hours for 25 000 to cover the increase in payments made to the
▶ Play Suggest a correction Report an error
Chair Unverified 1:14:07
wage hour claimants j1b is a letter from uams it's for 5.8 millions to provide the spending authority for the funds that were requested from the restricted reserve fund earlier in the agenda it's for the programs on high-risk pregnancy stroke newborn screen follow baby back home and sickle cell j1c is a letter from dfa is for 5.5 million it's to provide spending authority for the transfer for county jail reimbursement j1d is a letter from correction division of corrections for 2.5 million this is to cover operating expenses for monthly invoices and maintenance repairs let's share that as j1 senator dismay you recognize it's a question for corrections
▶ Play Suggest a correction Report an error
Senator Jonathan Dismang Unverified 1:14:48
this is 2.5 million dollar appropriation request and it's tied back to a cash fund called the inmate welfare fund.
▶ Play Suggest a correction Report an error
Speaker 228 1:15:11
Yes sir Chad Brown CFO Department of Corrections. Senator this is our like you said our cash fund for our commissary so we purchase food items and other items for inmates to purchase through our commissaries. The reason for the request I know it's late in the game and the reason for the request for the 2.5 million let me get to my notes. We have been shuffling maintenance requisitions over to our cash fund from our GR fund, so we've been trying to help out our state-funded fund with this cash fund. When it comes to our commissaries, just to kind of put it in perspective, we have about 28 facilities around the state. Some of those facilities have more than one commissary, so it allows the inmate population to go to more than one location within the facility to buy goods. so for example like our our unit in malvern has four commissaries our cummins unit has five varner has two and so on and so on we have about 1.1 million in invoices right now if we don't pay those this fiscal year they'll roll over in the next fiscal year and we'll pay it with that year's appropriation is
▶ Play Suggest a correction Report an error
Senator Jonathan Dismang Unverified 1:16:23
that but if i'm reading it it's for laundry kitchen equipment repairs broken what's it how's those items related to the commissary
▶ Play Suggest a correction Report an error
Speaker 228 1:16:31
so those are not related to the commissary uh itself those we we have the ability to use the commissary fund uh the code section for that is 12-29-107 and basically what it says is the general benefit to inmates through rules established by the board of correction so the way that we understand that is we can only use this fund if it directly benefits the inmate population and so when you start looking at laundry equipment and kitchen equipment to me that benefits the inmate population it washes their clothes it feeds them so we can use that fund for those type of capital purchases but it's
▶ Play Suggest a correction Report an error
Senator Jonathan Dismang Unverified 1:17:11
all based on profits from the commissary yes sir what is your balance in that welfare
▶ Play Suggest a correction Report an error
Speaker 235 1:17:21
fund we currently have a balance of about 13 million 13 million has that been growing or shrinking over
▶ Play Suggest a correction Report an error
Speaker 228 1:17:28
the year we project anywhere from 13 to 16 million a year uh so i say we probably
▶ Play Suggest a correction Report an error
Speaker 235 1:17:34
carry over roughly around 13 million a year and you now and you're going to exceed what is your
▶ Play Suggest a correction Report an error
Senator Jonathan Dismang Unverified 1:17:40
normal appropriation so and so and you funnel that through your regular appropriations and you've just exceeded your appropriation thresholds yes sir and so you need 2.5 million dollars more i mean i'm looking at it i'm gonna say i'm not sure that this is a legitimate use for those funds i don't think that i would agree in some ways but again i don't know enough about it to know for certain but so you you've already how much have you spent then of your commissary so it's about 13 to 16 million a year is that what you said yes sir and you spend on average 13 to 16 million a year that would be the case if your balance is about what your annual income is yes sir right so and now you're going to spend about an extra 2.5 million out of that right it's an interesting thing to me that you can make decisions on how to use that money for really a lot of things that should look like regular maintenance and part of your regular budget i mean if you're not taking care of the hvac systems and there's already issues but okay so 2.5 million new appropriation this is review on you so it is what it is it give me a history on that if you don't mind the balance and utilization of the funds coming out of those commissary funds. I don't have that with me. I'll be more than happy to get it to you. No, but I would love to be able to email it to me. We don't have to have a long conversation. I'd like to just in
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 1:19:08
detail of what's happening there. Sure, that's easy. All right, thank you. Seeing no further questions, stands reviewed without objection. J2.
▶ Play Suggest a correction Report an error
William Parrish Unverified 1:19:19
Thank you, Mr. Chairman and JT, these are the 26 requests. The first one is a letter from Corrections Division of Corrections for $550,000. This is to purchase vehicles and safety
▶ Play Suggest a correction Report an error
Chair Unverified 1:19:31
and security equipment. J2B is a letter from Education Division of Elementary and Secondary Educations for $5 million. This is to do curriculum and resource development, an electronic medical record system for school nurses, and a web-based reporting platform for school-based health centers, centers all of which are activities that support the arkansas medicaid program j2c is a letter from dfa it's for 219 000 it's to reimburse 50 of the cost of the safe haven baby box j2d is commerce economic development commission it's for 34.9 million this is to provide the spending authority for the transfer earlier in the agenda for the site infrastructure grants and economic stimulus activities j2e is a letter from commerce division workforce services it's for $2.35 million. This is to continue workforce activities related to the adult education program. J2F is on page 6. This is a letter from Transformation Shared Services, Employee Benefits Division. This is for $10 million in spending authority. It's to reimburse employees through payroll as a part of a new spousal integration health reimbursement program. J2G is a letter from Labor and Licensing. This is on page 7. It's the State Board of Public Accountancy. It's for $100,000. is to develop and design the Accounting Career Awareness Program that introduces 8th grade students to the accounting profession. J2H is a letter from Labor and Licensee, State Board of Public Accountancy. It's for $150,000 to cover fee increases in exam billings. J2I is Labor and Licensee, and again, Public Accountancy. It's for $250,000. This is to support a pilot program, the Arkansas Residential Initial Exam Support Program, to assist individuals who qualify to it for the CPA exam. J2J is a letter from Labor and Licensees State Board of Barber Examiners. It's for $40,000 spending authority. This is the cover cost of the Enterprise License Platform, Arkansas and Spec contract payments, mileage, and other reimbursements. J2K is Public Safety Division of Emergency Management. It's for $800,000. It's to make fire protection service grants. J2L is page 12. This is DFA, $4 million. It's to provide spending authority to make grants for the Drug Task Force operations that was approved in the restrictions are transfer j2m is a letter from dfas for 2.9 million and this is provided spending authority for the uams angels program that was transferred in restricted reserve mr chair that's the end of the 26 cash request sir just me department of Corrections J2A
▶ Play Suggest a correction Report an error
Speaker 235 1:22:03
if you could let's talk about that what it was the non-revenue receipts fund that's our telephone fund your telephone so we get commissions
▶ Play Suggest a correction Report an error
Senator Jonathan Dismang Unverified 1:22:28
on our telephone and you're going to use this for x-ray machine you've exceeded your appropriation authority need another 550 well for telephone
▶ Play Suggest a correction Report an error
Speaker 228 1:22:38
we don't have any appropriation in our capital well i'm sorry for this
▶ Play Suggest a correction Report an error
Senator Jonathan Dismang Unverified 1:22:41
capital out you've exceeded your capital outlay right you got 550 for no sir we don't machines drug testing we don't have any capital outlay on that line item that's why we're requesting it this is establishing a new one all right and and how do y'all make a determination of what you do with those funds it looks like you've got about a 10 million dollar balance
▶ Play Suggest a correction Report an error
Speaker 228 1:23:04
so this is the fund that with the fcc ruling that came down this will be depleted and once this is depleted there will be no more with this cash fund so since i've been a department of corrections this fund's always been used for safety and security equipment across the department which you see the body scanners metal detectors and stuff of that nature i don't have the legal definition of what this fund is for but i can get that to you as well yeah i think
▶ Play Suggest a correction Report an error
Senator Jonathan Dismang Unverified 1:23:31
absolutely we would need to be able to see that i mean my concern on this fund and the other fund is just kind of the general oversight and i think it's conflicting a little bit on i mean the more profit you make the more money that you have to be able to really utilize the way that you all see fit with very little oversight i mean we're they were granting you oversight in these appropriation increases or the new appropriation for this one in particular but if you were inside your appropriation allowances we would never even under you know having this conversation at all which makes me a little apprehensive and again I mean if we're talking about the commensary I mean you're literally just making money off the inmates and then turning around and spending on yourselves which seems like a conflict but I mean that just may be my lack of understanding of how the program works but again and you do have sizable fund balances. And now I think what you're telling me is you have $10 million setting over here that you're going to deplete down. Uh, we've got a lot of things going on in corrections. You've got another request over here. Uh, I think coming up, that's going to be for overtime pay that we'll have another discussion about, but I am getting a little bit concerned about how we're utilizing our funds, especially those that maybe we're not so aware of in this legislature. Okay. Thank you. Same thing. I want to see the history of what's happening on this on a pretty granular level. I don't need to have conversations about
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 1:25:03
it. I would lock it on paper, please. Okay. Yes, sir. Seeing no further questions, these items stand reviewed without objection.
▶ Play Suggest a correction Report an error
Chair Unverified 1:25:17
Move on to J3. Mr. Chair, J3. are the 26 continuation and 25 appropriation. All items on this schedule were approved earlier this fiscal year, and agencies on this list are requesting to continue projects into the new fiscal year that starts in July. Staff check to make sure all continuation amounts are at or below what was requested in 25. All total agencies are requesting $122 million in spending authority approved for this year to continue into the new fiscal year. Without objection,
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 1:25:44
it stands reviewed. Move on to K-1. Oh, hold on. I may circle back.
▶ Play Suggest a correction Report an error
William Parrish Unverified 1:26:04
Go ahead. Stands review. K-1. Thank you, Mr. Chair. We're in Section K. These are budget classification transfer requests. K-1 are the requests for fiscal year 25. K-1A is a request
▶ Play Suggest a correction Report an error
Chair Unverified 1:26:20
from the Supreme Court for $16,950 to transfer from professional fees to conference and travel. This is to cover increases in hotel and meal charges for their annual spring judicial conference. K-1B is Department of Military, $115,000 is to transfer from professional fees and operating expenses. This is to update and maintain National Guard armories. K-1C is Military, $75,000, professional fees and operating expenses. It's the same as the previous request. It's to maintain National Guard armories, but this request is for a separate sub fund. Mr. Chair. Those are all the requests for fiscal
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 1:26:57
year 25 See no questions k1 stands reviewed without objection k2, please Thank you, mr. Chair
▶ Play Suggest a correction Report an error
Chair Unverified 1:27:06
we're in k2. These are fiscal year 26 requests for bcts the first item k2a is request from Commerce Insurance Department's a $23,000 transfer from operating expenses to conference and travel this is a correct or budget by placing spending authority in the proper line item for hosting a conference k2b is human services secretary's office it's 1.67 million dollars from professional fees operating expenses it's to update audio visual equipment for conference and meeting rooms mr. chair those are the two requests for fiscal 26
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 1:27:39
Seeing no questions, stands reviewed without objection.
▶ Play Suggest a correction Report an error
William Parrish Unverified 1:27:41
L1, please. Thank you, Mr. Chair. We're in Section L. These are miscellaneous federal grant appropriation requests. L1 are the requests for fiscal year 25. L1A is Public Safety Division of Emergency Management.
▶ Play Suggest a correction Report an error
Chair Unverified 1:27:54
It's $300,000 in Spending Authority. They have a grant from the Department of Homeland Security for a nonprofit security grant program to harden targets and do other security enhancements. Mr. Chair, that's the only request for fiscal year 25. seeing no questions stands
▶ Play Suggest a correction Report an error
Speaker 170 1:28:10
reviewed l2 please thank you mr. chair we're in l2 these are the
▶ Play Suggest a correction Report an error
Speaker 219 1:28:16
fiscal year 26 requests l2a is a request from
▶ Play Suggest a correction Report an error
Chair Unverified 1:28:20
human services division of age and adult behavior health it's for 114 000 they have a grant from the substance abuse and mental health services administration for the integrating behavior health in arkansas program l2b is public safety $28,000. They have a grant from the Department of Justice to enhance state victim compensation payments and L2C is Public Safety Commission on Law Enforcement Standards and Training. It's $137,000. They have a grant from the Substance Abuse and Mental Health Services Administration to improve collaborative efforts with behavioral health and criminal justice stakeholders. Mr. Chair, those are the 26 requests. Without objection, they stand reviewed. Move
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 1:29:00
on to item three. thank you mr. chair we're in
▶ Play Suggest a correction Report an error
Chair Unverified 1:29:06
l3 these are the 26 continuation of 25 appropriation again all items on the schedule were approved earlier this fiscal year and the agencies on the solicitor requesting to continue their projects into the new year that starts in july staff check to make sure all continuation amounts are at or below what was requested in fiscal year 25 all total agencies requesting 25.4 million in spending authority and two positions approved for this year to continue to the new fiscal year without objection item l3
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 1:29:37
stands reviewed move on to m1 pay plan appropriation request thank you mr. chair we're
▶ Play Suggest a correction Report an error
William Parrish Unverified 1:29:45
in section m this is pay plan appropriation on this list are six agencies they request 471,000 the
▶ Play Suggest a correction Report an error
Chair Unverified 1:29:51
spending authority for salaries and match all site increases from the employee benefit division and salary adjustments as the need for additional appropriation the largest request is from Parks and Tourism
▶ Play Suggest a correction Report an error
Senator Jonathan Dismang Unverified 1:30:09
Division at 360,000 Senator Dismay. I think
▶ Play Suggest a correction Report an error
Speaker 260 1:30:11
just a question on the 400,000 corrections. Community Corrections. I think that's the next item.
▶ Play Suggest a correction Report an error
Speaker 261 1:30:20
I thought he just said did you not read it? But you can sit right
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 1:30:27
there and be comfortable because it's coming. Members, seeing no questions under M1, stands reviewed without objection. Moving on to N1. Billy, you recognize me.
▶ Play Suggest a correction Report an error
Chair Unverified 1:30:40
Thank you, Mr. Chair. We're in overtime. This is an overtime request for fiscal year 25. This is N1A. It's a Department of Correction Division of CUNY Correction. It's one request from the division for $400,000 in overtime due to transfer of programs made in the last session, but also due to inmate search efforts. Thank you. Could
▶ Play Suggest a correction Report an error
Senator Jonathan Dismang Unverified 1:31:00
you give me it on the $400,000? I think that started out at $5 million and then got kind of whittled down, if I remember what the original request looked like. It may be off on a million or two, but I think that was right. How did we get from that much more significant amount down to this $400,000? and what is the breakout
▶ Play Suggest a correction Report an error
Speaker 228 1:31:21
for your $400,000 request? It looks like it's for two separate things. Yes, sir. Chad Brown, CFO, DOC. So this request, Senator, as you know, as was just stated, the residential facilities in community correction, those are transferring over to the Division of Correction. That was done in this past session. With that comes a payout of all their liabilities that they have on their books, like their overtime, gap time, stuff of that nature. So this is going to cover the majority of that request. With the recent issues that took place in Calico Rock, we also had parole officers and a few SRT members from Division of Community Corrections help out and assist with that. Normally, parole officers bank their overtime, and we don't pay that out. But Secretary Wallace asked if we could pay that out. so we submitted this request late because we didn't know that that was going to happen and so when it did I got with the FNN I'm like hey I don't think we're going to have enough and so worked with them based on the issues that took place in Calico Rock and I thought it was going to be a lot more than what it was but once we whittled it down some have already worked their time off that they had accrued this is what was left over so I'm looking at 50 people total from community correction helped and assisted in north central and 22 of those are being paid out
▶ Play Suggest a correction Report an error
Senator Jonathan Dismang Unverified 1:32:44
all right thank you uh what is the amount for the overtime pay related to then that's what i guess you've exceeded your appropriation so maybe that wouldn't even be the full answer um how much of this overtime is attributable to the calico rock issue i would say probably not even a quarter
▶ Play Suggest a correction Report an error
Speaker 228 1:33:05
of it the majority of it comes with the transfer from the secure facilities over to division of correction and how did
▶ Play Suggest a correction Report an error
Senator Jonathan Dismang Unverified 1:33:12
you get from five million to was five million
▶ Play Suggest a correction Report an error
Speaker 228 1:33:14
the number the original request i don't know off the top of my head i'm gonna that seems like a large number for the division of community correction yeah see that that's doc that's adc i thought that was a high number for division of community correction because they banked their
▶ Play Suggest a correction Report an error
Senator Jonathan Dismang Unverified 1:33:31
overtime we don't pay theirs out all right so you've got 50 employees worked on that manhunt yes sir and and and in an overtime level y'all have an amount on what it is cost for uh the manhunt i think for this it
▶ Play Suggest a correction Report an error
Speaker 235 1:33:44
equated to around 10 to 12 000 keep in mind though it was only for a set amount of days so the 10 to 12
▶ Play Suggest a correction Report an error
Senator Jonathan Dismang Unverified 1:33:53
000 out of the four 400 000 yes
▶ Play Suggest a correction Report an error
Speaker 228 1:33:56
sir the rest of it comes from the transfer of the facilities going over because that's more of a significant so we're talking about 480 positions moving yeah from community correction over to division of correction all right so
▶ Play Suggest a correction Report an error
Senator Jonathan Dismang Unverified 1:34:07
the 10 to 12 000 and then but as far as the cost of the manhunt i mean there was something tied back to that i don't have that but can we let's get that i'd be i will definitely be glad to work on that yeah to see what that see what that ultimately cost okay us y'all uh to be able to to have that i think you call it an issue sure all right that'll work yeah if you can get that so there's three pieces there i'd like to know about those two funds their histories and i'd like to know
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 1:34:37
what we paid for the manhunt got it well i'm confused now because the call i got two weeks ago was that we needed 450 000 for the overtime for the manhunt and now you're telling us that the manhunt was only like 12 000 that's a huge disparity and maybe there was some confusion on the call i got that the call was for the transfer not necessarily the manhunt but i was told
▶ Play Suggest a correction Report an error
Speaker 228 1:34:58
manhunt representative i don't know who called you so i can't speak to that dfna called me oh well i i know the majority of it's
▶ Play Suggest a correction Report an error
Speaker 270 1:35:08
for the centers moving over to adc
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 1:35:14
it makes sense yeah i'm just confused so by friday you can tell us exactly what the manhunt cost us i'll do my best thank you with that objection the overtime appropriation request and reviewed we move on to the tobacco settlement thank you
▶ Play Suggest a correction Report an error
William Parrish Unverified 1:35:31
mr. chair we're in section o this is the tobacco settlement account carry forward request Arkansas code allows agencies that receive funding from the tobacco settlement program fund to submit a request to the chief fiscal officer and the Tobacco Settlement Commission to carry over any fund balances into the next biennium. Two agencies, the Department of Human
▶ Play Suggest a correction Report an error
Chair Unverified 1:35:54
Services and Arkansas Minority Health Commission, have requested to retain funds. In this packet are letters from the agencies making the request, as well as letters from the Chief Fiscal Officer and Tobacco Settlement Commission approving the request. Code requires ALC to review. Ms. Chair, that is the request. Representative Bentley, you're recognized for a question. Thank you, Chair. Can
▶ Play Suggest a correction Report an error
Representative Mary Bentley Unverified 1:36:14
we get a dollar amount on what those two are? We have a letter, but I have see no dollar amounts in either
▶ Play Suggest a correction Report an error
William Parrish Unverified 1:36:20
request yes ma'am this this comes over every biennium and so the last time we saw this I requested that I was told that we would
▶ Play Suggest a correction Report an error
Chair Unverified 1:36:25
not be able to get that dollar amount to the end of the year I'd have
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 1:36:29
to have the agency come forward to give you more of a ballpark can we ask the agency for the amount we absolutely can thank you sir It doesn't look like the agency is going to have much of an answer for you. Don Adams, Chief of Staff, Health Department.
▶ Play Suggest a correction Report an error
Don Adams Unverified 1:37:00
Matt Gilmore, Department of Health. Yes, ma'am. The projected amount of unspent funds from this year's revenue is about $750,000. Does that cover both of these
▶ Play Suggest a correction Report an error
Representative Mary Bentley Unverified 1:37:12
letters or just one? If I may. That's for Minority Health
▶ Play Suggest a correction Report an error
Matt Gilmore Unverified 1:37:15
Commission. And I think you've got a letter there from the Medicaid. Yeah, DHS as well. And I think they're not going to know until the end of the year what they pay out. But I'll let Ms. Franklin speak to that.
▶ Play Suggest a correction Report an error
Speaker 283 1:37:35
Good morning, Mary Franklin, Division of County Operations Director. I can tell you our current balance
▶ Play Suggest a correction Report an error
Speaker 284 1:37:41
for the tobacco settlement fund is $9,684,086, but we could have expenditures hit against that through the end of the fiscal year, so that won't be the exact carryover amount. That would be something less than $9,684,000. And, Chairman, can I ask this for me by
▶ Play Suggest a correction Report an error
Representative Mary Bentley Unverified 1:38:00
Friday? I would like to know what we normally spend. That's quite a bit, $9 million, and $750,000 for Minority Health Commission. What do we plan on spending on that? and what have we spent that on in the past so i saw i was writing the letters curious what we didn't spend it on what we
▶ Play Suggest a correction Report an error
Matt Gilmore Unverified 1:38:20
plan on spending it on i could speak to a little bit on the minority health commission they have had some turnover the payments fluctuate annually so you know what they actually get sometimes is actually more than their appropriation so it's kind of a for them to budget and use what they're appropriated versus what they actually receive maybe more so this actually if had more that received than what the appropriation was that may be the reason they didn't spend it all but they have had staff staff turnover um they've had some uh grants they were issuing out that you know they bill off what they are invoiced from those grantees and sometimes that doesn't go all the way into fruition what those grantees were doing so it just it it varies from year to year so this is
▶ Play Suggest a correction Report an error
Representative Mary Bentley Unverified 1:39:01
not abnormal not really no ma'am for 700 000 700 yes ma'am mr
▶ Play Suggest a correction Report an error
Speaker 283 1:39:09
franklin your response on that so and i should i can explain that in
▶ Play Suggest a correction Report an error
Speaker 284 1:39:13
dhs the funding we get from the tobacco settlement commission funds the tobacco settlement medicaid expansion program which covers four areas it covers 500 slots on the community and employment support waiver the dd waiver it funds those slots it funds the pregnant women expansion which covers pregnant women above above 133 percent of federal poverty level up to 214. It funds that portion of pregnant women Medicaid coverage. It also funds a hospital benefit for people who've been in the hospital more than 20 days in a year. And the fourth group is the Arkansas Seniors, which is a program for very low-income seniors who are up to 80 percent of the federal poverty level. Those are the four groups that the DHS tobacco settlement funds serve and we can provide you numbers you know at the end of the year about the total spend and total carry over thank you thank you chairman thank you
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 1:40:21
seeing no further questions Oh stands reviewed without objection Adam P thank you mr. chairman section P this
▶ Play Suggest a correction Report an error
William Parrish Unverified 1:40:30
is a year in adjustments appropriation requests. This is a letter from the CFO requesting prior approval of year-end adjustments to close out the books for fiscal year 25. Without this prior approval, chairs from ALC and PEER would have to be on standby throughout the evening on June 30th to respond with emergency review should any
▶ Play Suggest a correction Report an error
Chair Unverified 1:40:48
state accounts are discovered to be short in the last hours of the fiscal year. According to the letter, if the accounts cannot be cleared, unanticipated issues could potentially delay payroll if interpayments may not be processed and the loading of fiscal year 26 information to aces may be interrupted all impacting state operations the request is for prior review to make budget classification transfers and provide up to 1 million in various temporary appropriation mfgs and cash appropriation
▶ Play Suggest a correction Report an error
Speaker 126 1:41:15
any actions taken will be reported at the next
▶ Play Suggest a correction Report an error
Speaker 13 1:41:22
peer meeting see no questions stands reviewed
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 1:41:26
under item q uh without billy's explanation Can we get someone at the table from DHS on the state hospital weather? And just really quick, really easy, are we still pursuing, at the end of this, the insurance reimbursement for these fixes? And can you walk me through where we're at in that process, if you would introduce
▶ Play Suggest a correction Report an error
Speaker 289 1:42:16
yourself for the record? Paula Stone, Director of Office
▶ Play Suggest a correction Report an error
Speaker 175 1:42:21
of Substance Abuse and Mental Health. Janet Mann, Deputy Secretary and Medicaid Director,
▶ Play Suggest a correction Report an error
Speaker 289 1:42:29
DHS. Morning, Lori McDonald, DHS. yes we will be pursuing insurance reimbursement for um the damage repair
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 1:42:35
at the end of this do we think it will cover the total cost because it says that it exceeds the on-call contracts so i'm
▶ Play Suggest a correction Report an error
Speaker 289 1:42:50
trying to figure that out um i think we do believe that i mean that they would have to be submitted to the insurance company to make sure that all of those repairs are done, um, and, and
▶ Play Suggest a correction Report an error
Representative Jeff Wardlaw Chair Unverified 1:43:00
completed. That insurance company is the department of insurance, correct? Yes. That's what I thought. Okay. Thank you. That's what I wanted to know. Uh, any other questions on the report section of the agenda for members? Seeing none, uh, seeing no further business. We stand adjourned.
▶ Play Suggest a correction Report an error

Agenda

A. Call to Order

0:42

Items for Approval

B. Various Temporary Appropriation Requests

1:22

C. American Rescue Plan Act Appropriation Requests

24:01

D. Infrastructure Investment and Jobs Act Appropriation Requests

1:02:34

E. Appropriation and/or Fund Transfer Requests

1:06:13

F. Restricted Reserve Fund Transfer Requests

1:07:33

G. State Central Services Deduction Request 1. FY2026 Request a. Department of Finance and Administration

1:10:34

Item to Recommend Approval to ALC-Personnel

1:11:20

H. Reallocation of Resources 1. FY2025 Request a. Department of Human Services

1:11:34

Items for Review

1:13:09

I. Appropriation and/or Fund Transfer Requests

1:13:11

1. FY2025 Request a. Department of Education – Division of Higher Education – Financial Aid Programs

1:13:13

J. Cash Fund Appropriation Requests

1:14:00

K. Budget Classification Transfer Requests

1:26:11

L. Miscellaneous Federal Grant Appropriation Requests 1. FY2025 Request a. Department of Public Safety – Division of Emergency Management – Nonprofit Security Grant Program

1:27:43

M. Pay Plan Appropriation Requests

1:29:42

N. Overtime Appropriation Request 1. FY2025 Request a. Department of Correction – Division of Community Correction

1:30:39

O. Tobacco Settlement Account Carry Forward Request

1:35:29

P. Year-end Adjustments Appropriation Request 1. FY2025 Request a. Department of Finance and Administration

1:40:28

Reports

1:41:30

Q. Quarterly Report 1. Department of Human Services – State Hospital Damage Report

1:41:31

R. Monthly Reports

S. Other Business

1:43:23

T. Adjournment

1:43:24

Documents

TitleTypePagesSource
Agenda — ALC - PEER, Jun 17, 2025 Agenda 5 Official source ↗
B.1. fy25 vta · Various Temporary Appropriation Requests › FY2025 Request Exhibit 3 Official source ↗
B.2. fy26 vta · Various Temporary Appropriation Requests › FY2026 Requests Exhibit 17 Official source ↗
B.3. fy26 vta continuation Exhibit 2 Official source ↗
C.1. fy25 arpa Exhibit 21 Official source ↗
C.2. fy26 arpa Exhibit 22 needs OCR Official source ↗
C.2.b Replacement CDC SIWD Strat A1 MFG continuation One Page Summary 6_5_25 Exhibit 1 Official source ↗
C.3. fy26 arpa continuation Exhibit 6 Official source ↗
D.1. fy26 iija Exhibit 6 Official source ↗
D.2. fy26 iija continuation Exhibit 2 Official source ↗
E.1. fy25 appropriation_fund_transfer APPROVAL Exhibit 2 Official source ↗
E.2. fy26 appropriation fund transfer APPROVAL Exhibit 2 Official source ↗
F.1. fy25 restricted reserve Exhibit 3 Official source ↗
F.2. fy26 restricted reserve Exhibit 9 Official source ↗
G. FY26 - State Central Services Deduction CFO Letter Exhibit 1 Official source ↗
H. fy25 dhs ror3 · Reallocation of Resources Exhibit 9 Official source ↗
I. fy25 appropriation_fund_transfer REVIEW Exhibit 2 Official source ↗
J.1. fy25 cash Exhibit 5 Official source ↗
J.2. fy26 cash Exhibit 14 Official source ↗
J.3. fy26 cash continuation Exhibit 2 Official source ↗
K.1. fy25 bct · Budget Classification Transfer Requests › FY2025 Requests Exhibit 7 Official source ↗
K.2. fy26 bct · Budget Classification Transfer Requests › FY2026 Requests Exhibit 5 Official source ↗
L.1. fy25 mfg · Miscellaneous Federal Grant Appropriation Requests › FY2025 Request Exhibit 3 Official source ↗
L.2. fy26 mfg · Miscellaneous Federal Grant Appropriation Requests › FY2026 Requests Exhibit 7 Official source ↗
L.3. fy26 mfg continuation Exhibit 2 Official source ↗
M. fy25 payplan Exhibit 2 Official source ↗
N. fy25 overtime Exhibit 2 Official source ↗
O. tobacco carry forward Exhibit 3 needs OCR Official source ↗
P. CFO Letter - End of Year PEER Letter FY25 Exhibit 2 needs OCR Official source ↗
Q. ASH Storm Damage Repair Report Exhibit 2 Official source ↗
R.1 FY25 - Period 11 - Restricted Reserve Report Exhibit 9 Official source ↗
R.2. Budget Stabilization Trust TBS Report Exhibit 5 Official source ↗
R.3 Period 11 Adjusted Tobacco Worksheet Updated May 2025 Exhibit 3 Official source ↗
R.4. State Central Services Report Exhibit 2 Official source ↗
R.5. Educational Adequacy Fund Report Exhibit 2 Official source ↗
R.6. Medicaid Program Trust Fund Report Exhibit 8 Official source ↗
R.7. IIJA Report Exhibit 5 Official source ↗
SUPPLEMENTAL AGENDA Exhibit 3 needs OCR Official source ↗

Speakers

Representative Jeff Wardlaw Chair Unverified
85 segments
Representative Stetson Painter Unverified
3 segments
William Parrish Unverified
30 segments
Chair Unverified
71 segments
Representative Frances Cavenaugh Unverified
58 segments
Speaker 35
5 segments
Representative DeAnn Vaught Unverified
12 segments
Speaker 52
1 segment
Speaker 54
7 segments
Speaker 57
1 segment
Speaker 61
3 segments
Speaker 59
1 segment
Speaker 64
1 segment
Speaker 74
6 segments
Speaker 79
3 segments
Speaker 92
4 segments
Senator Jonathan Dismang Unverified
47 segments
Speaker 105
2 segments
Speaker 110
21 segments
Speaker 115
1 segment
Speaker 116
1 segment
Speaker 120
5 segments
Speaker 17
1 segment
Speaker 135
2 segments
Don Adams Unverified
9 segments
Speaker 149
1 segment
Speaker 155
6 segments
Speaker 152
11 segments
Senator Fredrick J. Love Unverified
3 segments
Speaker 172
1 segment
Speaker 174
1 segment
Speaker 177
6 segments
Speaker 118
1 segment
Speaker 183
1 segment
Speaker 189
1 segment
Speaker 111
1 segment
Senator Breanne Davis Unverified
8 segments
Speaker 197
4 segments
Speaker 180
1 segment
Speaker 203
1 segment
Speaker 205
2 segments
Speaker 107
1 segment
Speaker 173
1 segment
Speaker 126
2 segments
Speaker 14
1 segment
Speaker 228
16 segments
Speaker 235
5 segments
Speaker 170
1 segment
Speaker 219
1 segment
Speaker 260
1 segment
Speaker 261
1 segment
Speaker 270
1 segment
Representative Mary Bentley Unverified
6 segments
Matt Gilmore Unverified
3 segments
Speaker 283
2 segments
Speaker 284
4 segments
Speaker 13
1 segment
Speaker 289
3 segments
Speaker 175
1 segment