Arkansas Legislative Council (ALC)
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- October 6, 2026
Senator Ben Gilmore
Unverified
0:00
please take your seats good morning to everyone it's good to see everybody here and I'm going to call
Senator Mark Johnson
Unverified
0:09
on Senator Dees to offer a prayer Senator Dees if you would light up there
Speaker 3
0:18
and you're recognized thank you Mr. Chair
Senator Tyler Dees
Unverified
0:20
members let's pray thank you Lord for today thank you for this beautiful springtime just pray a special blessing for folks who've been battling storms across the state, and just helpful hands in preparation on that recovery.
Lord, thank you for this membership and the chance to enter this room with humble hearts and minds full of service for the great state of Arkansas, and ask that we leave the state better than when we walked into the room. Lord, may the meditations of our heart be pleasing to you, and we ask for your wisdom and guidance and blessing through this work. In Jesus' name we pray. Amen. - All right, thank you, Senator.
Senator Ben Gilmore
Unverified
1:04
All right, members, we're gonna start with item C, the approval of the minutes of the last meeting. I'll entertain a motion to adopt those minutes. I have a motion. I have a second, any discussion? Seeing none, all in favor say aye. - Aye. - Any opposed? Seeing none opposed. All right, moving right on to item D. Dr. Silva, if you would please come and make your report. Thank you, Mr. Chairman.
Speaker 11
1:36
You're recognized. Thank you, Mr. Chairman. Carlos Silva of Bureau of Legislative Research. I'm your staff, and today I'm 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, dollars, which is a decline of $361.5 million from year to day, 24-25. That's around 5% decline. As we move down to net general revenues, we'll have $5.4 billion. There's also a decline of
$224.7 million, or around 3.9% decline there from year to day. As we move to page number two, And we'll see here there's a change from 131 to 0.7 to 52.2 on the difference between the forecast and what we have here today. But the agency had come up with a new forecast, so this here would not be relevant since they have a new forecast.
As we move to the following pages, page number three to page number five, we'll see general revenues. And from page number five, the bottom page number five and forward, we have special revenues. There was not much change between the last month to this month other than that change on this forecast, which was due to the corporate and individual income tax collections that we have declined there from last month.
And with that, I'll take any further questions. Thank you for your
Senator Ben Gilmore
Unverified
3:26
report doctor. It looks like we have a couple of questions going first to
Senator Kim Hammer
Unverified
3:31
Senator Hammer. You're recognized. Thank you. Uh, good morning. Thanks 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 refund, are they related any way, shape, or form at all? So the agency
Speaker 11
3:59
has come up with a new forecast. 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 talk a little bit more since they're ones that 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 forecast that come from the agents, I wonder if it would be more appropriate for them to explain that. Do you
Senator Ben Gilmore
Unverified
4:20
mind, Mr. Chair? Do you mind? that's fine also have others in the queue to ask questions all right can we take these other
Senator Mark Johnson
Unverified
4:33
questions yeah okay our chair directs thank you all right um going now to represent
Representative Stephen Meeks
Unverified
4:39
meeks you're recognized thank you and 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 individuals 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 better for the agency is that so it's dry is that is that what is driving them
to have to come out with a new forecast yeah again I I'll rather
Speaker 18
5:09
defer to the agents I can talk about after they they made their statements but I think my all right we'll wait for the agency then thank
Chair
Unverified
5:16
you all right thank you representative representative Bentley you recognized thank you
Representative Mary Bentley
Unverified
5:23
chairman this might be for the agency as well but I just see on page for DFA fines like 156 percent 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 percent increase or not fines penalties and court calls from DF&A. Yeah, I'll refer to them since
Senator Terry Rice
Unverified
5:55
it says DF&A. All right, Senator Rice. Thank you. Representative Bentley asked my question. I would like to hear from DF&A and see if that's one large fine for the main party increase or if they're going more aggressive, what results. Okay, thank you, Senator.
Senator Ben Gilmore
Unverified
6:08
And we'll get the agency here in just one second. All right, Senator
Senator Jonathan Dismang
Unverified
6:16
Desmay, you're recognized. thank you uh i'll just do this is back on representative meek's question i mean 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 okay and so i mean i would my response to 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 the payments related to the tax returns correct we didn't need the agency name but okay thank you all right thank you doctor i'm going
Speaker 38
7:01
to ask the agency to come forward Senator hammer,
Senator Ben Gilmore
Unverified
7:08
I'm going to go to you first and members of you have questions for the agency. I'm going to ask that you get back in the queue
And mr. Secretary if you would identify yourself for the record and then I will open it
Speaker 39
7:27
up for questions Jim Hudson secretary DFA good morning Congratulations chairs on your appointment and congratulations members on being with ALC looking forward to working with you over the next biennium Thank you, sir.
Senator Kim Hammer
Unverified
7:37
I'm going to send her hammer. You're recognized. Thank you I think Senator Diss may probably address it, but let's just hear from you. As far as the numbers that are reflected in this report and any alarm bells that may be going off,
some of this is attributed to the fact that tax due date was deferred and is having a reflection in this report. Would you just give us some assurance or just give us some input as far as correlation
Representative John P. Carr
Unverified
8:01
of the two events? Yeah, so Dr. Silva's report, you know, is essentially a backward-looking report to see what we've done thus
Speaker 41
8:09
far in the fiscal year. You know, corporate collections are notoriously volatile. They're even more so, I'd say, right now, just given the number of tax cuts that we've done with some retroactive effect.
So there could be a forecasting, you know, component to this. But the big thing in terms of our new forecast that we just issued, with the disaster declaration, due dates that would otherwise be occurring between now and July 31st, those have been extended to July 31st. So we have a large amount of estimated tax payments that occur June 30, and so we would expect some amount of them to be rolled into FY26 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 FY25 into FY26. We've done some estimating on that, but we really don't know how many people will take advantage
Senator Kim Hammer
Unverified
9:16
of that yet. So August, September will
give us a truer picture with those deadline
Speaker 41
9:22
dates expired. Yeah, and again, it's a timing issue.
It's not a question that we're losing revenue here. It's just going to happen
Senator Kim Hammer
Unverified
9:31
in a different fiscal year now. Yeah, I think
Representative Stephen Meeks
Unverified
9:35
that's the important point to make. Thank you. Yes, sir. Representative Meeks, you're recognized. And I think Senator Dismang may have
kind of gotten to the heart of where I was going with this. 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 it'll come back in line.
Representative John P. Carr
Unverified
9:56
Is that the expectation? Yes, sir. The extension did not impact revenue at all. It
Representative Stephen Meeks
Unverified
10:06
of the revenue. Okay. And then my follow-up question, you all had 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? You know, there's a lot of speculation about the impact of tariffs, where the economy is going. And so I just want to, A, is any of that driving the need?
And is there anything looking forward that we need to
Speaker 41
10:32
be concerned about, about revenues coming into the state? Yes, sir. So issued revised revenue forecast yesterday. That's required by statute. We do that third Wednesday of May per statute. So that's the reason for the timing of it. We did reduce projected revenues for FY26 and FY27, primarily because of economic indicators at a macro level. I provided a full copy of that revenue forecast to the chairs.
I'm sure at the appropriate time, staff's going to make copies available to y'all as well. I would encourage you to read the entire report. It has all the explanations and footnotes in it about the trend factors that we use. But to answer the specific question, I would say that the reduction that we are made to the forecast is really almost entirely driven by macroeconomic considerations. And to 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, that they are trimming their forecasted growth in GDP. But it really isn't because of the actual impact of tariffs, because there largely isn't an actual impact of tariffs yet. 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, it's 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 that on a net basis are more favorable to the United States today, in the future, than what they are today. And I think particularly for Arkansas, if our agri exports, we get access to certain foreign markets that we're currently closed off to, that could be a significant benefit to the state.
But at this point, we don't know what the actual long-term benefits will be for it. So because of the uncertainty, analysts have reduced the projected
Speaker 39
12:55
growth. We're following suit. All right. Thank you. Members, seeing
Senator Ben Gilmore
Unverified
13:02
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
Representative Mary Bentley
Unverified
13:13
quick, we figured out what the increase, the 156% increase in fines and court costs were for you guys,
if you can get back to me with that. we'll run it down or businesses or what or what
Speaker 41
13:25
yeah i don't know what is we'll run it down i do want to address i think senator rice's question that does that represent some sort of change in enforcement posture by dfa the answer to that is no we have not changed our enforcement posture so there must be some could be a culmination of several cases that got resolved we'll find out what it is
Speaker 3
13:44
and report back to you all right thank you members thank you mr secretary
Senator Ben Gilmore
Unverified
13:48
thank you doctor our members moving right along i will turn it over to my co-chair representative eaves
to give the executive committee subcommittee report representative eaves you're recognized thank you mr chairman
since the beginning of the year the executive subcommittee met multiple times and reports the following actions 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 and 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 ALC co-chairs report emergency action taken on January 28th and on May 6th. The 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 ALC via email and are attached to your report. Mr. Chair, I have two motions. Please proceed. I move to adopt the rules of
legislative council and then after that, motion to adopt the report.
Senator Ben Gilmore
Unverified
15:33
All right. Let's entertain that motion. I have a motion. I have a second. Members will need to
vote this separately by chamber per the rules. So with that, any discussion on this before we proceed to a vote? Seeing no one. All right,
Senator Mark Johnson
Unverified
15:47
Director Geraghty, if we would. All right, we're going to voice vote by the House. All in favor
Senator Ben Gilmore
Unverified
15:53
say aye. Aye. Any opposed? Hearing none, all right. Voice vote by
Senator Mark Johnson
Unverified
15:59
the Senate. All in favor say aye. Aye. Any opposed?
All right, passes. Thank you, Co-Chair Eves. Second, my motion was
the motion to adopt this report. All right,
Senator Ben Gilmore
Unverified
16:11
I have a motion to adopt the report. I have a second. Any discussion on that motion? All right, hearing none, all in favor say aye. Aye. Any opposed? Ayes have it. Thank you, Co-Chair Eves. All right, members, moving on to the standing subcommittees, beginning with administrative rules. Senator Deese, you're
Senator Tyler Dees
Unverified
16:30
recognized. Thank you, Mr. Chair. The subcommittee met on May 21st. The subcommittee adopted its 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. Four 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 other rules were reviewed and approved as noted in the report. I move for adoption of the report.
Senator Mark Johnson
Unverified
17:12
Thank you, Senator. I have a motion. Do I have a second?
Senator Ben Gilmore
Unverified
17:17
I have a second. Any discussion on that motion? Seeing none, all in favor say aye. Aye. Any opposed? Ayes have it. Thank
Senator Mark Johnson
Unverified
17:26
you. Moving on to Hospital Medicaid Subcommittee. Representative Bentley, or Senator English,
Senator Jane English
Unverified
17:34
I'm sorry, if you would. Thank you, Mr. Chairman. 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 motion.
Senator Ben Gilmore
Unverified
18:03
I have a second. Any discussion on the motion? Seeing none, all in favor say aye. Aye. Any opposed? Ayes have it. Thank you. We'll go to the peer report. Senator Dismang, you are recognized.
Senator Jonathan Dismang
Unverified
18:16
Thank you, Mr. Chairman. The Peer
Review Committee met on Monday, May 19th.
subcommittee received reports received reports reviewed requests and approved the following various temporary appropriation american rescue plan act appropriation infrastructure investment jobs act appropriation and a restricted reserve transfer uh fund transfer at the proper time i move adoption of the report and after that vote vote i will have additional motions all right so we
Senator Mark Johnson
Unverified
18:43
have a motion i have a second any discussion on that motion see
Senator Ben Gilmore
Unverified
18:49
none all in favor say aye Any opposed?
All right. Ayes have it. Senator, you're recognized for your follow-up motion. Members, A1 in
Senator Jonathan Dismang
Unverified
18:58
your packet is a supplemental agenda item that was brought forward by the Department of Health. I move to spin the rules to take up the supplemental agenda. Thank you, members. You've heard
Senator Ben Gilmore
Unverified
19:06
the motion. I have a second on that motion. So all in favor for suspension of rules to take this item up, please say aye. Aye. Any opposed? All right. All right. I'll give
Senator Jonathan Dismang
Unverified
19:15
you a second to find that. I believe it's one of the last things in your packet. It may be the very last thing in your packet.
All right, so members, after PEER met on Monday, DFA sent a request by the State Board of Chiropractic Examiners for a $5,000 increase in pay plan appropriation. Matt Gilmore from the Department of Health is available to take any
questions on the request. All right, members, do
Senator Mark Johnson
Unverified
19:51
we have any questions for the other Gilmore? The better Gilmore. I see no one seeking recognition. So, all right.
Senator Ben Gilmore
Unverified
20:01
We have a motion. Have a second. Any discussion? All right. All in favor say aye. 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. We will now hear the review report Senator Johnson
Chair
Unverified
20:28
if you would You're recognized Review subcommittee met on Monday Adopted the subcommittee rules and reviewed methods of finance discretionary grants requests
Qualifications and services contracts all items reviewed with one exception the ALC review subcommittee adopted a motion to not review the in-state contract for Aptis Financial with the Department of Transformation Shared Services Employee Benefits Division on page 96 of the attached packet. I move for adoption of
Senator Mark Johnson
Unverified
20:56
the report. Okay. I have a motion. I have a second. Discussion, Senator Hester.
Senator Bart Hester
Unverified
21:04
Yeah. On the item that was not reviewed,
after much discussion with House members and some senators, 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 than maybe it's been given uh so i'm not sure how to do that i think we have some agreement
Senator Mark Johnson
Unverified
21:27
to do that okay it sounds like i'm hearing a substitute motion so review the items and with
Senator Ben Gilmore
Unverified
21:33
the exception of sending that to personnel is that the
Chair
Unverified
21:36
motion center that's correct Do you want me to adopt my motion to include that?
Yeah, that would be better. If you're so inclined, Senator. So with an option to send that Aptus financial contract to peer in June, per personnel in June, with that adoption, I move for adoption of the report. All right. Thank you, Senator. just so we're clear
Senator Ben Gilmore
Unverified
22:02
members that's the review 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 second any discussion on that
all right seeing no discussion all in favor say aye any opposed eyes 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 you mr
Senator Jimmy Hickey, Jr
Unverified
22:34
chair the state insurance program oversight subcommittee made on tuesday may 20th 2025 the subcommittee adopted its subcommittee rules the subcommittee reviewed and approved the employee benefits division drug formulary reports
Speaker 67
22:46
for april and may of 2025 and medical drug recommendations for may of 2025 i move for adoption of the report thank senator
Senator Mark Johnson
Unverified
22:54
i have a motion i have a second any discussion see none all in favor say
Senator Ben Gilmore
Unverified
22:59
aye. Aye. Any opposed? Ayes have it. Thank you. Moving on to the personnel report. I think that's going to be Representative Warren. You're recognized. If you would hit that again sir. You're recognized. Thank you Mr. Chair. The personnel subcommittee
Representative Les Warren
Unverified
23:20
met on Tuesday May 20th and approved the items one and two 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 report at the proper time all right I
Senator Mark Johnson
Unverified
23:48
have a motion and I have a
Senator Ben Gilmore
Unverified
23:50
second any discussion see none all in favor say aye
aye any opposed eyes have it thank you all right members we're going to move on to item h and this is going to be the reports i'm going to 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 as we get there so on item h number one there under item h we have a motion to refer to the senate interim 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. Any discussion? Seeing none, all in favor say aye. Aye. Any opposed? All right. The next item under communications would be item number five. We have the Arkansas Public Employees Retirement System. That is a review of investment summaries. I need a motion to file as reviewed. I have motion. I have a second. Any discussion on that motion? Seeing none, all in favor say aye. Any opposed? Ayes have it.
Thank you. Moving right along under item six, we have the request for legislative council's review under the teacher retirement system. I need a motion to file as reviewed. I have motion to have second I have second any discussion see none all in favor say aye all right members again any any look at those reports if you see something you want to ask question on if not we're gonna go on down to item number 10 Arkansas
Insurance Department 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 okay 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 20-25-004 to the House of Agriculture, Forestry, and Economic Development Committee.
Do I have a motion? I have a motion. Do I have a second? Any discussion? See none. All in favor say aye. Aye. Any opposed? The one no is noted. Number two, under that, I think maybe we were passing over this until next month. Is that correct, Representative Honk? Thank you, sir. All right, members, then we will go to item number three. 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. Aye. Any opposed? Ayes have it. All right. I think we, I think that's it. Members, just a couple of things. When you walked in, you should have received a personalized thumb drive. That is a PowerPoint for your use and includes a summary of some of the bigger acts that were passed this session. And it's, it's useful for use in your communities as you talk about the section. In addition to that, there'll be an email that'll go out with all of that in a summary as well.
if you have any questions please see director Garrity and then I think at this point seeing no further business I'm going to 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 co-chair Eves are 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 Ben Gilmore
Unverified
Senator Mark Johnson
Unverified
Speaker 3
Senator Tyler Dees
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