Arkansas Legislative Council (ALC)
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- October 2, 2026
Senator Mark Johnson
Unverified
0:14
And I'm going to call on Senator Dees to offer a prayer. Senator Des, if you would. Light up
Speaker 3
0:23
there. And you're recognized. Thank you, Mr. Chair.
Senator Tyler Dees
Unverified
0:25
Members, let's pray. Thank you Lord for today. Thank you for this beautiful springtime, just, uh, pray a special blessing for folks who've been bet on storms across the state and, um, just helpful hands and, and preparation on that recovery. And Lord, thank you for this membership and the chance to uh enter this room with, um, with humble hearts and
And mine's full of service for the great state of Arkansas and that's that we leave the state better than when we walked into the room and Lord made the meditations of our heart, uh, be pleasing to you and uh we ask for your wisdom and guidance and blessing through this, this works and pray. Amen. All right, thank you, Senator. All right, members, we're
Senator Ben Gilmore
Unverified
1:11
gonna start with item C, the approval of minutes of the last meeting. I'll entertain a motion to adopt
those minutes. I have a motion. I have a second any discussion, see none, all in favor say aye. And your pose, seen and opposed. All right, moving right on to item D, uh, Doctor Silva, if you would please come make your report. Thank you Mr. Chairman, you're recognized.
Speaker 11
1:41
Thank you, Mr. Chairman Carlos Silva, Bureau of Research. I'm your staff and to
them here talking about April 2025, monthly revenue report. As we look on page number one, we'll see gross general revenues as $6.8 billion which is a decline of $361.5 million from here to today, 24 to 25, that's around 5% decline as we move down to net general revenues will have $5.4 billion. There's also a decline of $224.7 million
or around 3.9% decline there from year to date. As we move to page number 2. And we'll see here. There's a change from um 131 to 0.7 to 52.2 on um The difference between the forecast and, and what do we have here today, but the agency had come up with a new forecast, so this here would would not be relevant since they have a new forecast. As we move to um
To their following pages, page number 32 page number 5, you'll see general revenues and from page number 5, the bottom page number 45 and forward, we have special revenues. Uh, there was not much change between it, did it last month or this month, uh, other than Then that change on this forecast which was, was due to The
Corporate and individual income tax, uh, collections that, that we have the declined there from, from last month. And with that, I'll take uh any further questions. Thank you for your report, doctor.
Senator Ben Gilmore
Unverified
3:31
It looks like we have a couple of questions going first to Senator Hammer,
Senator Kim Hammer
Unverified
3:36
you're recognized. Thank you. uh, good morning. Thank you for the report.
I'm just curious as far as interpreting the numbers, any concern about the future, um, with the decision for tax returns to be delayed, deferred
until later, uh, this year, you know, when the feds gave us a little latitude from that. How, how does that decision affect these numbers and should we see some adjustments in the individual income tax reform. or are they related in any way, shape or form at all. Um, so did the agency
Speaker 11
4:04
has come out the new forecast. I can, I can talk a little bit about the forecast, but I don't know if it would be better for the agents to come up and and and talk a little bit more since they wants to have revised that. Other than that, I can talk about some other things that we have seen with related to corporate and individual income tax, but since the
Senator Ben Gilmore
Unverified
4:22
forecasts have come from the agents, I want more appropriate for them to explain that. Do you mind, Mr. Chair. Do you mind? That's fine.
Senator Mark Johnson
Unverified
4:36
I also have others in the queue to ask questions. All right, can we take these other questions? OK, thanks. All right, can we take these other questions? OK,
Representative Stephen Meeks
Unverified
4:44
thank you. Thank you. All right, I'm going now to represent Meeks. You're recognized. Thank you and uh good morning, sir. Thank you for your, for your, um, you said that the, the, the reduction is
basically been due to a reduction in uh taxes coming in from corporate and individuals, um, do we know if there's something driving that in the broader economy, is that decline expected to continue and my Part B and this may be. for the agency is that's what's is that, is that what is driving them to Have to come out with a new forecast. Yeah, again, I, I, I'll
Speaker 18
5:14
defer to the agents I I can talk about after they, they, they made their statements, but I, I think we'll wait for the
Chair
Unverified
5:24
agency then. Thank you. All right, thank you, Representative Representative Bentley,
Representative Mary Bentley
Unverified
5:28
you recognized. Thank you, Chairman. This might be for the agency as well, but I just see, um, on page 4 DFA fines, like 156% increase, what was the cost for that? It seems like a pretty excessive increase for that. For this month, so I don't know if there's one particular thing that caused that to be 156% increase. Or not. Fines, penalties, and court calls from DFN. I'll refer to them as the FNA.
Senator Terry Rice
Unverified
5:57
All right, Senator Rice. Thank you, uh, Representative Bentley asked my question. I would like to hear from DFNA and see if that's a one large fine for the main party increase or, or if they're going more aggressive, what, what
Senator Ben Gilmore
Unverified
6:12
result? OK. Thank you, Senator, and we'll get the agency here just, just one second. All right, Senator Dismay,
Senator Jonathan Dismang
Unverified
6:21
you're recognized. Thank you. Uh, I'm just, this is back on Representative Meek's question.
I mean, I, and I was in the back on a phone call, so I'm sorry, but We did stipulate that there was a shift in revenue on income tax collections because of the federal shift on the due dates. Yes, sir. Right, OK. And so, I mean, I would, my response is Representative Meeks would be. That a substantial portion of the decrease in income tax collection. is due to the shift in the due date for income taxes, not just for the Tax returns themselves but also
Speaker 38
6:57
the payments related to the tax returns. Correct. Uh We didn't need the agency,
Senator Ben Gilmore
Unverified
7:13
but OK, thank you. All right. Thank you, doctor. I'm gonna ask the agency to come forward. Senator Hammer, I'm gonna go to you first and members, if you have questions for the agency, I'm gonna ask that you get back in the queue. And Mr. Secretary, if you would identify yourself for the record
Speaker 39
7:28
and then I will open it up for questions. Jim Hudson, Secretary of DFA, good morning. Congratulations, chairs, on your appointment, and congratulations members on being with ALC looking forward to working with you over the next
Senator Kim Hammer
Unverified
7:42
biennium. Thank you, sir. Going to sender hammer, you're recognized. Thank you. I think Senator Dimay probably address it, but let's just hear from you as far as the numbers that are reflected in this report, um, and any alarm bells that may be going off. Some of this is attributed to the fact that, uh, um, tax due
date was deferred and is having a reflection in this report. We just give us some assurance or just give us some
Representative John P. Carr
Unverified
8:06
input as far as correlation of the two events, Dr. Silva's report, you know, is essentially a backward looking report. to see what we've done thus
Speaker 41
8:14
far in the fiscal year, uh, you know, corporate, uh, collections are notoriously volatile. Um, they're even more so I'd say right now, just given the number of tax cuts that we've done when some retroactive effect. So there could be a forecasting, you know, uh, component to this,
but the big thing in terms of our uh new forecast that we just issued with the disaster declaration, um, due dates that would otherwise be occurring, uh, through now. between now and, uh, July 31st, those have been extended to July 31st. So we have a, a large amount of estimated tax payments that occur June 30 and so we would expect some amount of them to be rolled into FY 26 to be made at
the end of July. It's not a net loss of revenue. It's just more of a timing effect of it. So we'll see some leakage of revenue both on the personal side and the corporate side out of F-25 into FY 26, you know, we've done some estimating on that, but. We really don't know how many people will take advantage of that
Senator Kim Hammer
Unverified
9:21
yet. So August August, September will give us
a truer, truer picture with those deadline dates expired.
Speaker 41
9:27
Yeah, and again, it's, it's, it's, it's a timing issue, you know,
it's not a question of we're losing revenue here. It's just gonna happen
Senator Kim Hammer
Unverified
9:36
in a different fiscal year now. I think that's
Representative Stephen Meeks
Unverified
9:40
an important point to make. Thank you. Ribs of Meeks, you're recognized. David, chairman, and, and I think, uh, Senator Disma and, and,
and may have kind of gotten to the heart of where I was going with this, but, so it sounds like since we're delaying some of these payments, the expectation is that when those dates arrive, that this shortfall, if you will, will be met, that, uh, it'll come back in line. Is that?
Representative John P. Carr
Unverified
10:03
The expectation. Yes, sir, this, uh, the extension did not impact revenue at all. It impacted
Representative Stephen Meeks
Unverified
10:11
revenue. OK. And then my, my follow-up question, is that, y'all mentioned that you'd come out with a new forecast. Yes sir. Is there anything in the broader economy that's driving the need for that, uh, you know, there's a lot of speculation about the impact of tariffs, where the economy is going, and so, uh, just want to, um, A, is any of
that driving the need and is there anything looking forward that
Speaker 41
10:37
we need to be concerned about, about revenues coming into the state. Yes, sir. So, uh, issued revised revenue forecast yesterday that's required by statute. We do that, uh, 3rd Wednesday of May, per statute. So that's the reason for the timing of it. Um, we did reduce projected revenues uh for FY 26 and FY 27. Uh, primarily because of economic indicators that a macro level. Um, I provided a full copy of that revenue forecast,
uh, to the chairs. I'm sure at the appropriate time, staff's gonna make copies that available to, to y'all as well. I would encourage you to read the entire report. It has all the explanations and footnotes and about the trend factors that we use, but to answer the specific question. I would say that the reduction that we are, you know, made to the forecast is really almost entirely driven by macroeconomic considerations. Um, and, and we put a kind of distinction on this. I think it's very, very important.
Tariffs are a large component to this in terms of the analysts that we track, particularly at S&P, um, that they're trimming their forecasted growth in GDP. But it really isn't because of the actual impact of tariffs. Because they're largely isn't an actual impact of tariffs yet. They've, they've been paused in many, many respects. I think what you see working itself out right now in the market is the perception as to what the actual impact will eventually be.
And you know, if anything's really certain is that markets hate uncertainty and so that kind of extracts a little bit of a price. I for one believe that the potential upside from tariffs could be significant for the state if. All the agreements are worked out as been represented as you see in the media, and we get trade agreements on a net basis are more favorable to the United States today, uh, in the future than what they are today, OK? And I think particularly for
Arkansas if our agra exports we get access to certain foreign markets that were currently closed off to, that could be a significant benefit to the, to the state. But at this point, we don't know what the actual long term benefits, you know, will be for. So because the uncertainty analysts have reduced
Speaker 39
13:00
the projected growth we're following suit. All right, thank you
Senator Ben Gilmore
Unverified
13:07
members see no other questions, Mr. Secretary, thank you. Well, you have one? Would you get in the
queue? All right, Representative Bentley, you're recognized. Thank you. Just real quick,
Representative Mary Bentley
Unverified
13:18
we figure out what the increased the 156% increase in fines and court costs were for you guys if you can get back to me with that, but I don't know if it's criminals or businesses or what or what what's that I don't
Speaker 41
13:30
know what it is. We'll, we'll run it down. I, I do want to address, I think, Senator Ross's question and that is that represents some sort of change and enforcement posture by DFA. The answer to that is no, we have not changed our enforcement posture, so
there must be some. Could be accumulation of, of several cases that got resolved. We'll find out what
Speaker 3
13:49
it is and and report back to you. All right, thank you members.
Senator Ben Gilmore
Unverified
13:53
Thank you, Mr. Secretary. Thank you, doctor. He remembers moving right along. I will turn it over to my co-chair, Representative Eves to give the executive committee's subcommittee report. Representative, you're recognized. Thank you, Mr.
Chairman. Since the beginning of the year, the executive subcommittee met multiple times and reports the following actions.
Uh, reviewed and approved emergency rules for the Department of Corrections, the Department of Human Services, and the Department of Commerce, all of which have been reported to the members and alternates of ALC in accordance with ALC rules. We received reports and recommendations from consultants related to the procurement study. The motion picture production study and the state property insurance study approved various contracts including contracts related to dynamic fiscal impact scoring formation of the state captive insurance program, the procurement study, actuarial services for the Joint
retirement Committee and Actuarial Services related to the EBD programs. Approved waiver requests from school districts for cooperative purchasing. Construction services, so by this report, the AOC co-chairs report emergency action taken on January 28th and on May 6th. The, uh, emergency action reports are attached to the executive subcommittee report in your packet as required by ALC Rule 16. In addition, the subcommittee recommended committee fund allocations for fiscal year 2026, the recommended allocations are also included in
your packet. Finally, the subcommittee voted to recommend changes to the ALC rules to the full ALC. And those proposed changes were sent to all members and alternates of AOC via email and are attached to your report. Mr. Chair, I have 2 motions. Please proceed. I move to adopt the rules
of legislative council. Um, and then after that motion to adopt the report. All
Senator Ben Gilmore
Unverified
15:38
right, let's, uh, let's entertain that motion. I have a motion. I have a second. Members will need to vote this, uh, separately by
chamber for the rules. So with that, um, any discussion on this before we proceed to a vote. Seeing no
Senator Mark Johnson
Unverified
15:52
one. All right, Director Garty, if we would, um, all right, we're gonna voice vote by the house. All in
Senator Ben Gilmore
Unverified
15:58
favor say aye. And you post. He none. All right, uh, voice vote by
Senator Mark Johnson
Unverified
16:04
the Senate, all in favor say aye. Can you post? All right, passes. Thank you, uh, coach Eir Eaves second motion was the motion to
adopt this report. All right, I have a motion to
Senator Ben Gilmore
Unverified
16:18
adopt the report. I have a second. Any discussion on that motion? All right, hearing none, all in favor say aye. And he post. I have it. Thank you, Coach Chair Eaves. All right, members moving on to the standing subcommittees, uh, beginning with the administrative rules.
Senator Tyler Dees
Unverified
16:35
Senator Dees, you're recognized. Thank you, Mr. Chair. The subcommittee met on May 21st, the subcommittee adopted a subcommittee rules and filed two reports of the executive subcommittee concerning its review and approval of emergency rules. The subcommittee received
and filed quarterly reports by the Department of Corrections and post prison transfer board. The subcommittee received agency updates on outstanding rulemaking from the 2023 regular session. 4 rules were pulled from consideration prior to the meeting at the agency's request and two rules were not considered because they were held in House and Senate committees on public health, welfare, and labor for further consideration. All, all other rules were reviewed and approved as noted in the report. I move for adoption of the report. Thank you, Senator. I have a
Senator Mark Johnson
Unverified
17:19
motion. Do I have a second? I have
Senator Ben Gilmore
Unverified
17:22
a second. Any discussion on that motion? See none all in favor, say I. Any post. I have it. Thank you. Moving on to,
Senator Mark Johnson
Unverified
17:31
um, hospitals Medicaid and subcommittee Representative Bentley. Or Oren English, I'm sorry. If
Senator Jane English
Unverified
17:39
you would OK Chairman Uh, the hospital, Medicaid and Developmental Disability study subcommittee met on Monday to hold an organizational meeting regarding upcoming studies being
conducted pursuant to Act 145 of 2025 and Act 1004 of 2025, the subcommittee also heard an update regarding reimbursement rates under the Living Choices Assisted Living waiver from DHS. I move to approve this. Thank you, Senator. I have a
Senator Ben Gilmore
Unverified
18:08
motion. I have a second. Any discussion on the motion? See, none, all in favor say aye. Any opposed? Ayes have it. Thank you. Uh, we'll go to the peer report, Senator Dismay, you are
Senator Jonathan Dismang
Unverified
18:22
recognized. Thank you, Mr. Chairman. The Pierce, uh, review committee met on Monday, May 19th, the subcommittee received reports, received reports, reviewed requests, and approved the following various temporary appropriation, American rescue Plan Act Appropriation infrastructure investment Jobs Act appropriation. a restricted reserve transfer, uh, fund transfer at the proper time. I move adoption of the report, and after that vote, I will have additional motions. All right, so we have a
Senator Mark Johnson
Unverified
18:48
motion. I have a second, any discussion
Senator Ben Gilmore
Unverified
18:54
on that motion. See none, all in favor say aye. Any opposed? All right, I have it. Senator, you recognized for your follow-up motion. Members a one in
Senator Jonathan Dismang
Unverified
19:03
your packet is a supplemented uh agenda item that was brought forward by Department of Health, um, I moved to spin the rules, take up the supplemental agenda. Thank you, members. You've heard the
Senator Ben Gilmore
Unverified
19:11
motion. I have a second on that motion, so all in favor for suspension of rules to take this item up, please say aye. Any opposed? All right. I'll give you a second to find that.
Senator Jonathan Dismang
Unverified
19:20
I believe it's one of the last things in your packet.
Maybe the very last thing in your back. All right, so members after peer met on Monday, DFA sent a request by the state board of Chiropractic Examiners for a $5000 Increase in pay plan appropriation, uh, Matt Gilmore from the Department of Health is available to take
any questions on the request. All right, members, do we
Senator Mark Johnson
Unverified
19:56
have any questions for the other Gilmore? The better Gilmore. I see no one seeking
Senator Ben Gilmore
Unverified
20:04
recognition. So, all right, um, We have a motion, have a second. Any discussion? All right, all in favor say aye. Any opposed? Thank you for sparing us, bringing Matt to the table, and that was a motion to review. Thank you. Thank you. All right, moving right along, uh, we will now hear the uh review report. Senator Johnson, if you would. You're recognized. Review subcommittee met on
Chair
Unverified
20:36
Monday, uh, adopted the subcommittee rules and reviewed methods of finance discretionary grants, uh, requests, uh, qualifications and services contracts, all items are reviewed with one exception, the ALC review subcommittee adopted a motion to not review the in-state contract for APTAS Financial. With the Department of Transformation Shared Services, Employee Benefits division on page 96, you attached packet. uh, I move adoption of the report. OK.
Senator Mark Johnson
Unverified
21:01
I have a motion. I have a second, um, discussion, Senator Hester.
Senator Bart Hester
Unverified
21:10
Yeah, um, on, on the item that was, that was not reviewed after much discussion with, with, with House members and some senators, uh, I don't know how exactly to do this, but I would like to send that item to personnel for a full vetting in June. I think it's a bigger issue than, um, then maybe it's, it's been given, uh, so I'm not sure how to do that. I think we have some agreement to do that it,
Senator Mark Johnson
Unverified
21:32
it sounds like I'm hearing a substitute motion. So review the items and with the exception of sending that to personnel, is
Chair
Unverified
21:41
that the motion center? That's correct. You want, do you want me to adopt my motion to include that if. better if you, if you're so inclined, senator. So, uh, with an adoption to uh send that Aus financial uh contract to peer in June per personnel in June. Uh, with that adoption, uh, I, I moved for adoption of the report. All right. Thank you, Senator,
Senator Ben Gilmore
Unverified
22:07
just so we're clear, members, that's the review, uh,
agenda with the exception of that one item will be sent to personnel. That's the motion. Do I have a second? I have a 2nd. Any discussion on that? All right, see, no discussion, all in favor say aye. And he opposed, I have it. Thank you. Moving right along to the, uh, state insurance programs oversight subcommittee. I think that is Senator Hickey, you're recognized, sir. Thank
Senator Jimmy Hickey, Jr
Unverified
22:39
you, Mr. Chair. The state insurance program oversight
subcommittee met on Tuesday, May 20th, 2025. The subcommittee adopted a subcommittee rules. The subcommittee reviewed and approved the Employee benefits division drug formulary reports for April and May of 2025 and medical
Speaker 67
22:52
drug recommendations for May of 2025. I moved for adoption of the report. Thank you, Senator, I have a motion.
Senator Mark Johnson
Unverified
22:59
I have a second. Any discussion? See none all in favor say aye.
Senator Ben Gilmore
Unverified
23:04
And he posed, I have it. Thank you. Moving on to the personnel, uh, report, I think that's going to be representative Warren.
Representative Les Warren
Unverified
23:16
You're recognized. If you would hit, hit that again, sir. You're recognized. Thank you, Mr. Chair. The personnel subcommittee met on Tuesday, May 20th and approved the items one and 2 on the report. These were the subcommittee rules and a revision to the special compensation awards and recruitment incentives plan for the Department of Public Safety. The committee also heard a presentation from the Office of Personnel Management and staff regarding procedures and typical
requests to the committee. I'll be glad to take any questions and move adoption for the
Senator Mark Johnson
Unverified
23:53
report at the proper time. All right, I have
Senator Ben Gilmore
Unverified
23:55
a motion and I have a second in discussion. See none, all in favor
say aye. Any opposed, eyes have it. Thank you. All right, members, we're gonna move on to item H, and this is going to be the reports I'm gonna ask you to look through that, see if you have any questions. There are some that some that require action, and I will go through those, um, as we
get there. So on, um, item H, um. Number one there under item H, we have a motion to refer to the Senate Committee on Children and Youth, and the House Interim Committee on Aging Children, Youth and Legislative Affairs. So do I have a motion to do that? I have a motion. I have a second in discussion, see none all in favor say aye. He post. All right. Um, the next item under communications would be item number 5. We have the
Arkansas Public Employees retirement System that is a, um, review of investment summaries. Uh, I need a motion to file as reviewed. I have a motion. I have a second. Any discussion on that motion? See, none all favor say aye, in a post, I have it. Thank you, uh, moving right along under item 6. Uh, we have the request for legislative council's review, um, under the teacher retirement system. uh, I need a motion to
file as reviewed. I have a motion to have a second. I have a 2nd. Any discussion, see none, all in favor say aye. All right. Uh, members, again, any, any look at those reports. If you see something you want to ask a question on. If not, we're going to go on down to item number 10, Arkansas Insurance department, um, I think we have people here if members need to ask questions or want to hear that presentation. If not, I will just move forward. OK.
Thank you. And then on the back page, where are we here? Under Item J. We have some interim study proposals. All right, so under item one of J. We have a motion to refer ISP 2025004 to the House Agriculture, Forestry and Economic Development Committee. Do I have a motion? I have a motion to have a second. Any discussion, see none. All in
favor say aye. He opposed. Uh, the one no is noted. Um, number 2, under that, um, I think maybe we were passing over this until next month. Is that correct, Rivers and Hawk? Thank you, sir. All right, members, then we will go to item number 3. I have a motion to refer that interim study committee to House Education Committee. I have a motion. I have a second. Any discussion on that motion? All right, hearing none, all in favor say aye.
In a opposed, eyes have it. All right, um, I think we, I think that's it. Remember it's just a couple of things. When you walked in, You should have received a personalized thumb drive, um, that is a PowerPoint for your use and includes a summary of some of the bigger acts that were passed the session, um, and it's, it's useful for use in your communities as you talk about the section, uh, in addition to that, there'll be an email that'll go out, um, uh, with all of that in the summary as well. If you have any
questions, please see Director Garrity, um, and then I think at this point, seeing no further business, I'm gonna say I look forward to working with all of you. Over the coming months and if I can be of help to you, please don't hesitate. I know myself and Coach E Eaves or happy to entertain any questions you have or any help we can provide. So with that, members, we are adjourned. Thank you.
Agenda
A. Call to Order.
B. Roll Call.
C. Approval of the Minutes of the Last Meeting, December 20, 2024.
D. Presentation of the April 2025 Revenue Report (Dec 2024, Jan., Feb. & Mar. 2025 reports are retained in the file) – Dr. Carlos Silva, Legislative Economist
E. Report of the Executive Subcommittee — Sen. Ben Gilmore, Rep. Les D. Eaves, Co-Chairs.
F. Reports of Standing Subcommittees:
G. Reports of Interim or Special Committees: (none)
H. Review of Communications:
b. Office of the Secretary, Biennial report estimating the value of each exemption, discount, credit, and deduction available to businesses and individuals in state sales and income tax, submitted pursuant to ACA § 26-50-103;
I. New Business: (none)
J. New Interim Study Proposals and Interim Resolutions:
K. Business Carried Over: (none)
L. Adjournment.
SUPPLEMENTAL AGENDA
A. Pay Plan Appropriation Request
Documents
Speakers
Senator Mark Johnson
Unverified
Speaker 3
Senator Tyler Dees
Unverified
Senator Ben Gilmore
Unverified
Speaker 11
Senator Kim Hammer
Unverified
Representative Stephen Meeks
Unverified
Speaker 18
Chair
Unverified
Representative Mary Bentley
Unverified
Senator Terry Rice
Unverified
Senator Jonathan Dismang
Unverified
Speaker 38
Speaker 39
Representative John P. Carr
Unverified
Speaker 41
Representative Les D. Eaves Chair
Unverified
Senator Jane English
Unverified
Senator Bart Hester
Unverified
Senator Jimmy Hickey, Jr
Unverified
Speaker 67
Representative Les Warren
Unverified