Joint Budget Committee

Let them fight. Members if you can go ahead and take your seats when we get started here, uh, right now, uh, with that chair aorum. Let's go and grab your chairs. Uh, we got a, I have a couple of introductions today. I'm gonna start out. Members I know we're all excited, but let's go ahead and take our chairs out in the audience, Charlie, let's go and get started. Collins, we're getting started. If you've got a conversation that you need to continue to have, let's take it outside. All right, perfect. Alright, we have a couple of introductions uh to start out with. First, we've got a group from the University of Arkansas. They're part of the, uh, associated student government, the razorback Action Group, y'all could stand to be recognized. Hopefully, I think they're gonna be around with us for the rest of the day what I understand it. And really, I also just want to make sure everyone's aware of who the uh vice chairs are of budget, so if y'all can stand up, we've got Representative Johnson, uh, Senator Bryant. And also if you kind of just face everyone, yeah, uh. What we're gonna have them do on budget day is go ahead and coordinate so today they're in their purple later on this week we'll see if they can be in their blues or reds or what it may be, but they look great today. Uh, yeah, but if you got questions we're gonna color coordinate them and then they'll be easier to find, so, uh, with that, that brings us to our reports we've got a couple of items here. These are all review and with that I'll turn it over to Kevin for a summary and then if you have questions just slide up your mic and we'll get to them. Thank you. Yes, sir. Thank you, Mr. Chairman. Item B1, this is for review. This is from the Department of Parks, Heritage and Tourism division of State Parks. This is their allocation by park and Mister Chairman, they're here if anyone has questions. My understanding, we did have a question, so someone's from Parks is can go ahead and come forward. And, and by the way, they've changed up some of the uh settings over here, so I'm not familiar with what we're doing. Marty Ryle, director of legislative affairs for the Department of Parks, Heritage and Tourism? Mike Wilson assistant, uh, director of Arkansas State Parks, um, focusing on operations. All right, thank you, Representative Warren, you are recognized for question. Maybe not. Thank you, Mr. Chairman. I'm new to the committee, so I'm, I'm learning. Uh, I have a question. I, I grew up in the town of Smackover and I, I noticed Arkansas Museum of Natural Resources has nothing allocated to it. Uh, and I noticed there were several others like that, would you just enlighten me. As to why there are several on this report that have nothing and Yes sir, um, the report reflects general revenue use only, not, um, Amendment 75 or our conservation tax, um, AM and R is paid out of that. OK, thank you and you'll see, uh, represented some of these, uh, such as the Conway Cemetery. It's just a. I'm sorry. Some of those such as Conway Cemetery is, is, uh, just maintenance at another park takes care of that maintenance. There's not a full-time staff. There's not a visitor center. It's just a little cemetery, uh, and so the maintenance is done by a neighboring park. OK, thank you. All right, thank you, Representative Springer. Good morning. Thank you. I'm over here. Thank you, Representative Ease for that question. I had the same question with respect to uh poison Springs and White and withdra Springs. So I think you've answered the question so they they do have some type of allocation to maintain and upkeep those parks down in, uh, I think that's down in what close to Wahiton County, ma'am. It is managed by um White Oak State Park, and they do have a maintenance operation budget there, um, but the, the labor force there is White Oak State Park that takes care of it. Thank you. President Representative Wooton you recognized. Thank you, Mr. Chairman. I noticed in looking at it expenditures for 24 comparing that to budget. There's a lot of them that are coming in expenses under the budget. Do you, do you all go back and evaluate the expenditures and then an anticipated expenses. I mean, some of, some of, some of them are foreign and excess of what one's 40,000. Like uh Wars at all. Is almost 100,000 off from what you Expenses versus budget. Yes, sir. Those are, uh, strictly due to vacant positions, uh, for example, we're budgeted for 670 positions in Arkansas state parks and we're currently um at a pretty high number right now at 8 86%, um, fulfillment on our positions right now, but all of that is due to vacant positions over the past year, um, with, um, troubles and retention and attraction and positions. How many of those positions have been vacant for over 2 years. Um I'd have to get back with you on that number, but there are some, sir. I, I could get back with you on that to give you an exacting you unable to fill those positions. It's, it's basically the current market labor, um, what, what it's running at, so we're having issues on traction on some of our positions, especially in remote geographical areas. Um, when you start factoring in gas and travel and things like that, it's really hard to, to get some of these positions filled, whether it be a maintenance position, a park ranger, and even some of our park superintendents for, for example down at Lake Chico State Park. Um, it took us a great while to attract a, um, a new park superintendent down there. It's been going on for about 9 months. So that's, that's 9 months without paying that salary. All right. Thank you. Thank you, Mr. Chairman. All right, thank you, seeing no other questions on B1. It is reviewed B2. Thank you, Mr. Chairman. Item B2. This is the Department of Finance and Administration, Office of Revenue Legal Counsel. This is to give tax litigation resolved during the prior calendar year. All right, thank you, members. Do we have any questions on B2? All right, seeing no questions. It's reviewed B3. Senator Rice. Uh, thank you, Mr. Chair. We've got a constituent question for uh somebody from Arkansas State Police on this executive protection. OK, let's, uh, let him give the summary real quick. I thought, I'm gonna leave you hot, but I'm gonna let you go ahead. You want me to go ahead and do B3, Mr. Chairman. OK. Yes, sir. This is a report from the Department of Public Safety. This is where they will report expenses incurred by the executive protection detail for services provided to the governor. That's item B3. All right, thank you Senator Rice, uh, if we have anybody to come forward from state police and then. Uh, Senator Rice, you're recognized for your question. Just go ahead and recognize yourselves. Good morning. I'm Mike Hager, Secretary of the Department of Public Safety and Director of State Police. Karen Perry, Department of Public Safety, CFO. Thank you and good morning, uh, I had a constituent question me and I, I think I answered part of the question, but I didn't know the other part, so you're the man that can answer that on the international trips, uh, the question was about uh payment uh I explained what I call the foundation economic development foundation pays for some, uh, state may pay some, they wanted, they asked about the protection detail, and I said, well, one thing when there's. protections, uh, that Uh We that for security, you may not name the number of people that can go, but I said, I'll find out and average cost and if it is state taxpayer money, so can you answer is it state taxpayer money on international security protection trips, and if so, since we've got some history recently, and I didn't, I don't know what it was particular administration, but that's where the question came from, is there an average cost to what that's been on previous trips. Yes, sir, I would be afraid to say what the average cost would be um that would probably be something we'd have to go back and figure some numbers on. Obviously, it would, uh would you be afraid to, or you just don't know. I don't know. He's a, there's a difference is, is that something that citizenry can find out. Uh, yes sir, I, I think we could, you know, try to get an average cost. Um, it does differ, uh, greatly depending on um the country that is that we're traveling to. The economic development commission they do pick up, uh, part of the. Tabs sometimes for like ground transportation translators, things like that, um, it really depends on where we're going and what the needs for the security detail are if they travel to a country that is uh. Considered a higher risk, uh, we have to sometimes contract with local security people and if it falls more into a protection aspect for uh ground transportation and things like that then um that would fall under state police budget if it's more of, uh, just for. Normal transportation if that's a fair way to say it then uh sometimes the economic development commission will pick that up that's changed over different administrations, um, you know I of course worked all my time with the detail with 3 different, uh, governor's office not counting this one. And that's always uh differed a little bit on what the economic development commission or I'm sorry, the foundation picks up in what state police picks up but the biggest uh difference again is uh if they're going to a place where. Is deemed um the safe travel destination versus somewhere that is, uh, we're under current warnings from the State Department or things like that we do have to enhance security on those and typically that cost would fall under state police, OK, but I can answer one question is yes, taxpayer dollars pay for the protection detail. OK, let me just go with that if they want some kind of average for past ones off get get with you offline but thank you. All right, thank you, Representative Wooton recognized for the question. Thank you, Colonel. Glad to see you here today. um, November expenses were 345,000, well, 346,000. And your total expenses for 6 months was 816,000, almost half of that went in the month of November, what, what happened then to create that. Representative Wootten, I think, um, there was an extra pay period in November, November I think had 3 pay periods. So it's salary that's the salary over time and friends. That's the difference, um, that would be the reason why. OK. Uh, follow up if I may. Colonel, I had a constituent contact me yesterday. It, it appears that uh from what I understand, and I've just heard one side. That there were 40 troopers in cars that went to Washington DC. For the inauguration, can you share, is that correct? Yes sir, that is correct, uh, we were contacted, uh, we're actually in the process of going back to look to see exactly when that correspondence began, but right at a year ago, um, there was a call that went out from Washington DC police and our federal partners that were requesting. Enhance or basically assistance from uh state and local agencies to provide support for the inaugural mission, um, we agreed to do that, um, I believe in February of last year, um, long before we knew, uh, even who the candidates would be much less who would win the election, so there's been some, uh, inference that that was politically motivated thing or that that was, uh, to represent the governor that's actually not the case at all. We. agreed to send those 40 troopers, which are reimbursed, uh, by the federal government. I think there was 26 state police agencies that were, um, requested or that agreed to, uh, send local agencies and those are from red and blue states. Uh, there's also NYPD, Chicago PD. So in addition to state police personnel that we're seeing, there were also multiple large law enforcement agencies, both police and sheriff's departments that um agreed to send troopers for that mission or agreed to. law enforcement for that mission, but that is something that we agreed to, um, almost a year ago, long before we knew that had nothing to do with the governor's protection. It was two completely different, uh, details that we see. So, how many, how many did you say? We did, we sent 40 for that and that all 40 were used by the request. Yes sir, they were deputized on Sunday, I believe, by the United States Marshals Office along with all the other, um, there was about right at 4000, um, state. Uh, city and county officers that were sent up there in support of that mission and we did send 40 from the state. How many, how many went with the governor. Uh I don't know the exact number, but if, uh, that's OK, that's something that I would rather talk about. Offline if well I understand that, but of the 40. They were deputized in Washington proper. Just as we were when we went into Memphis several years ago. Yes, sir. That was a request similar to what, you know, we've sent troopers in the past to Support like hurricane relief and things like that. It was a similar request that is reimbursed by the federal government. Thank you. Thank you, Mr. Chairman. Thank you and if you could let them know we're proud of their commitment to serve and appreciate the fact that they were willing to go, um, it means a lot and I'm sorry that you had the news stories that try to portray that in some other light and and sorry for what happened with those uh law enforcement members again, I appreciate them being willing to engage and and be a part of the process, uh, there in DC. Yes, sir. We appreciate the question and the opportunity to clarify that because that's it was not. What it was implied to be at all. Absolutely unfortunate that that happened, uh, and all right, do we have any other questions or Senator Stubblefield. Thank you Mr. Chairman, uh, Colonel Hagger, how can you tell me how many states uh around us sent troopers of that magnitude. I think, uh, several, Oklahoma. Kansas, Oklahoma, Missouri. I know, uh, I spoke with, uh, the captain that led that detail this morning and he said that uh. He believes there was 26 state police agencies that were represented, um, I know I spoke with the colonel of Louisiana State Police yesterday they sent a large number, um, Oklahoma, Missouri, Alabama. Uh, New York, Delaware, Illinois, California. Um, there were large numbers sent from all those agencies, um, they basically the request was made and just asked us to send what we could, uh, we were also requested to send troopers to the conventions, um, we declined to do that, but uh we did agree to send them to the inauguration and we pulled the troop commanders as what they could afford to give up and we ultimately committed to 40. OK, how what the uh the guard troops, uh, I've heard different numbers. I, I think it was, wasn't there 8000 National Guardsmen there as well, honestly, I have no idea on that senator. I'm not sure was reported on all day that there was 8000 guardsmen. Along with the troopers there to to. To take care of this event, most of it was, I mean, it was outside. So, uh How many, can you tell us anything about, is it Dalvo she, the governor's gone to this morning. Today. I'm sorry, can you, Switzerland. Uh, I, I don't. I don't know anything about that trip. I know they're going, but I, I don't know any specifics about it. OK. All right, All right, thank you, Colonel Hacker. Yes sir. All right, thank you, uh, Senator Dees. Thank you, Mr. Chair, and I, I really want to echo, um, the chair's comments and, and let you know I, I'm fully appreciative of our team that was able to, to be there, um, I was there this last week and I saw multiple troopers from multiple different states and, and I'm thankful that, uh, teams across the country sent men and women to go serve and protect us across the country. So thank you for letting Arkansas be representative with that. um, but just a quick question when I, when I see this report and I think about your team. It, it's fair to say that your budget's gonna fluctuate based on threats of risk and, and based on different meetings and and environments and that wouldn't be outside the norm of of any other, uh, month to month, um, plan. Is that fair to say? Yes sir, absolutely. And so if, and if anything ever fluctuated higher to a level that um was outside of our planned procedures and budgets, we would come here and, and review and order and, and approve. Yes, sir, of course. Thank you for your support. Thank you. Thank you. Thank you, Senator Hickey. No. All right, thank you, Mr. Chair. Uh, you, you touched on it just a second. I just, if you could expand on it because I think it's a super importance. Did you say that that was, that is all gonna be fully reimbursed for the whole 40 officers by the federal government. Was that what I understood what you to say. Yes, sir. OK, the overwhelming share will be I spoke with the captain this morning and we're gonna have a little bit of per diem cost, uh, that we decided that it would be more efficient for them to get their gear there to drive. instead of, uh, fly. So you can imagine with the equipment that they took, that's, that becomes a whole different issue. So, uh, there will be a little bit of, uh, per diem, I think, for one day, and they reported yesterday on their, uh, assignment at 4 o'clock in the morning. They got back to their hotel about midnight last night. Uh, we've not calculated the overtime on that, but, uh, The, I can say the overwhelming share is going to be reimbursed by the federal government, um, I can't tell you certainly or for certain that we're not gonna have some expense that will be incurred, uh, with our operations budget, but we had that budget in place we're certainly not gonna request any additional funds, I think that's understandable. Like I said, I just thought that was important that we heard, that we hear that the majority of those funds were going to be covered because I'm sure they have a line item for that. So as far as the federal government. Thank you, sir. Thank you. Alright, thank you. Do we have any other questions on B3, seeing none of that item is reviewed before. Mr. Chairman, this is another report. uh this is from the Department of Finance and Administration before shows the value of each exemption discount, credit, and deduction. For individuals from state sales and income tax. All right, thank you, members, I'd encourage you to take a look through that, uh, report just to get familiar, uh, with some of the carve-outs that we have in our sales tax law, also we're gonna ask this is sent to the members of the uh revenue tax committees in both the House and Senate so that they have that seat in case they're not on joint budget, uh, with that, do we have any questions? All right, seeing none before is reviewed B5. Thank you, Mr. Chairman. Item B5. This is from the Arkansas Insurance Department. This is a monthly update required by AOC executive committee for an emergency rule that was approved for fair and reasonable pharmacy reimbursements. This reports its activities on those reimbursements as well as enforcement complaints activities related to the PBM regulation. All right thank you members do we have any questions on B5? And it's just, and if you can just whoever needs to can identify themselves but it's just on staffing as we gear up, you're gonna have several 100. Applications come in before February 17th. How are we doing on staffing? Is it something that you're going to be able to handle and what do we expect the turnaround to be as far as time of review. True, Alan McLean, insurance commissioner, this is Jimmy Harris, deputy commissioner, uh. Uh, the, um, Uh, we think the technology is there that we can receive large amounts of data, uh, about, um, at this time and by the deadline and uh we're expected to, you know, to turn it around in a short amount of time. We're receiving only now because you know that you saw the deadline is is February, so we, we expect a a flurry of reports from the from the health plans probably close closer to the deadline than than now, so, uh, uh, we, we have the the data system in place to receive that and uh we'll uh turn that around. in, in a matter of weeks. And so as far as staffing after we get the information, then it's gonna have to be reviewed. Are we saying a computer system or program's gonna do the review or do we have staff that Do we have enough staff to handle. You know, several 100 new reports that was otherwise not being reviewed by the department. Absolutely, yes, uh, that's we, we, the, the lion's share of the data is received electronically. We work, we have a contract with actuarial firm who is doing all the number crunching so it's not requiring any additional staff for us because we're going to rely on the actuaries. OK, and so that's a new contract that we have with an actuary to review it or an existing contract that we we we have a standing contract with the actuaries that that that we utilize for you know because. Of all the other data we have to crunch that's uh in our in our depar department that's not PBM we have to have a standing contract with actuarial services because that's, that's not a, not a, a position we typically uh keep staffed so it's the same cost. They're, they were on retainer of some kind and so they're gonna do the several 100 reports for the same cost that they were going to do if they didn't have the several 100 reports. There'll be some additional costs with it. I mean, it's a contract it's within the existing contract and that that's been a. improved here, but, uh, we'll, we will utilize more of that contract than we might typically do in uh a year but it's already sufficient enough. OK. All right, that will work and I appreciate you guys, uh, picking back up that 2020 report with the PBMs so I think that probably will be as helpful as anything that we did. I have a 128. So with that, do we have any other questions? All right, see no, uh, B5 is reviewed. Members, we have a few bills uh that we can go ahead and let out, uh, they don't have any, uh, personnel changes or. GR so that the first one will be on page 9, the only one in Senate, Senate Bill 53. Kevin, you recognize. Sir. Yes sir, uh, in the Senate packet that's the upper right hand S in the upper right hand corner, there's an S on that. These are Senate bills that are referred to Joint Budget Committee on page 9, Senate Bill 53, Auditor of state acts as a dispersing agent for continuing education of local officials, Mr. Chairman. All right thank you members do we need any questions on Senate Bill 53. All right, seeing none, what's the will of the committee, we've got a motion to pass. We've got a second. Any discussion on the motion, seeing none, all those in favor signified by saying aye. Other those opposed. Moshekiri, I believe the next one is in the house packet, page 5, House Bill 1102. Thank you, Mr. Chairman, on page 5, House Bill 1102. This is the treasure Ax dispersing agent for county Aid municipal aid. All right, thank you members do we have any questions on House Bill 1102. All right, seeing none, we need a motion. I've got a motion to pass. We've got a second. Do we have any discussion on the motion, seeing none, all those in favor signified by saying aye. All those opposed? Motion carries. Next set will be on page 6. Yes, sir. House Bill 1108, treasurer of state as a dispersing agent for the refund of local taxes. All right, members, do we have any questions on House Bill 1108. See no questions, we've got a motion to pass. We've got a second in discussion on the motion, seeing none, all those in favor signified by saying aye. All those opposed. Motion carries. House Bill 1109. Amendment 79 property tax appropriation, 74, sorry. All right. Thank you, members. Any questions on House Bill 1109? Seeing none, we've got a motion to pass. We've got a second in discussion on the motion, seeing none, all those in favor signified by saying aye. All those opposed? Motion carries House Bill 1110 rescue shelters appropriation. All right, thank you, members, any questions on House Bill 1110. Seeing none, we've got a motion to pass. We've got a second in the discussion on the motion, seeing none. All those in favor signified by saying aye. All those opposed. Motion carries. House Bill 11/11. Assistance to local enforcement and emergency medical appropriation. Thank you. Any questions on House Bill 11/11. Seeing none, we've got a motion to pass. We've got a second in discussion on the motion, seeing none. All those in favor signify by saying aye. All those opposed motion carries and next will be on page 7, House Bill 1113 is the obligation bonds. That's the last one, Mr. Chairman. Thank you, members. Do we have any questions on House Bill 11:13. All right, seeing none, we've got a motion to pass. We've got a 2nd in discussion on the motion, seeing none, all those in favor signified by saying aye. All those opposed? Motion. Like Miss Chairman, the governor's letter in your packet. This is governor's letter number one. This is a request for Governors Session legislative liaison staff appropriation bill if the committee chooses to adopt this governor's letter, the committee will authorize us to draft their appropriation bill, which will then be referred to this committee for its consideration. Thank you members. Do we have any questions on the governor's letter? Alright, see no need to motion to adopt. We have a motion to adopt. We have a second. All those in favor signified by saying aye. All those opposed? Motion carries. I believe that wraps up our business today. Thank you guys. For your time. I don't see any other business we are next Tuesday we'll meet 9 o'clock, same room. All right, thank you. Alright, we're adjourned.