• Governor Sarah Sanders presented a balanced budget proposal
• Budget increase of 2.89% focused on education, maternal health, public safety, and government efficiency
• $90 million additional funding for Education Freedom Accounts (EFA) program
• $90 million set aside for potential increased EFA demand (beyond 90 mil above)
• $13 million for Medicaid to fund maternal health programs
• $100 million set aside for Medicaid sustainability
• $102 million commitment for new state employee pay plan
• Nearly $50 million for Corrections, $6 million for Higher Education, $4 million for Division of Youth Services, $1 million for foster placement

• Adequacy fund not included in the main budget, expected to grow beyond current $600 million
• $40 million for medical contract in Corrections budget
• $9 million for county jail reimbursement
• $13 million for maternal health initiatives through Medicaid
• $100 million set aside for Medicaid sustainability as a contingency
• Projected surplus of $280 million in 2026, $299 million in 2027, and $505 million in 2028

• Questions raised about funding for senior adult centers
• Developmental Disability Services budget remains flat
• Arkansas Forward Pay Plan Initiative expected to benefit DHS employees
• No new funding allocated for upgrading Human Development Center facilities

• Discussion on low wages for non-state employees providing direct care in nursing homes and developmental disability services
• Concerns about staffing and retention in these areas due to low pay
• Questions about the status of 150 literacy coach positions in public schools
• Inquiry about the future funding and existence of educational co-ops

• Question about funding for Morgan Nick Foundation ($400,000 through DFA disbursing act)
• Clarification sought on support for direct care workers not employed by the state
• Discussion on plans to address pay for vulnerable population caregivers

Secretary Hudson

• Follow up with Representative Jean or Representative Fite regarding the continuation of $400,000 funding for the Morgan Nick Foundation (46:51)

Unassigned

• • Provide details on plans for reviewing and adjusting provider rates in the Medicaid world over time (44:21)
  • Provide information on the funding and setup of 150 literacy coach positions in public schools (42:15)
  • Clarify the future funding and status of educational co-ops (42:35)

The transcript contains several instances of conflicts or disagreements among participants, primarily revolving around budget allocations and educational funding. Here are the key issues identified, along with the involved parties and the severity of each conflict:

Issue: Funding for Private School Voucher Program vs. Public School Funding

• Involved Parties: Representative Wooten (opponent), Secretary Jim Hudson (supporter of the program).
• Description: Representative Wooten expresses strong concern about the funding for the Education Freedom Accounts (EFAs) and how the projected increase in private school enrollment could lead to a significant financial burden on the state, potentially harming public school funding. He argues that it is unfair to allocate $402 million to private schools while public schools may suffer.
• Severity: High. This disagreement touches on fundamental issues of educational equity and the allocation of taxpayer money, indicating a significant policy divide.

Issue: Adequacy Fund and Its Relationship to the Budget

• Involved Parties: Senator English (questioning), Robert Brecht (responding).
• Description: Senator English questions the relationship between the adequacy fund and the proposed budget, seeking clarity on whether the budget reflects any changes to the adequacy funding for public schools. Brecht indicates that the adequacy recommendations would be funded through a separate fund.
• Severity: Moderate. While there is no outright conflict, the concern reflects underlying tensions about educational funding priorities.

Issue: Developmental Disability Services Budget

• Involved Parties: Representative Ladyman (concerned), Secretary Jim Hudson (defending the budget).
• Description: Representative Ladyman raises concerns about the lack of increases in the Developmental Disability Services budget, highlighting the growing need for services and the low salaries of workers. He questions why there is no funding for facility upgrades.
• Severity: Moderate to High. This disagreement highlights the challenges in addressing the needs of vulnerable populations and the adequacy of funding for essential services.

Issue: Medicaid Sustainability Fund and Its Use

• Involved Parties: Senator Hammer (inquiring), Secretary Jim Hudson (explaining).
• Description: Senator Hammer seeks clarification on the Medicaid sustainability fund and how it will be utilized. Hudson explains that the fund is a contingency plan rather than an immediate allocation.
• Severity: Low. This is more of a clarification issue rather than a direct conflict, but it indicates concerns about future funding needs.

Issue: Funding for Senior Adult Centers

• Involved Parties: Senator Hammer (inquiring), Secretary Jim Hudson (responding).
• Description: Senator Hammer asks about any funding for senior adult centers, to which Hudson responds that there is no specific funding in the budget.
• Severity: Moderate. This indicates a lack of attention to senior services in the budget, which may lead to future disagreements.

Overall, the conflicts primarily revolve around educational funding and the implications of budget decisions on public versus private education, as well as the adequacy of funding for vulnerable populations and essential services. The severity of these conflicts varies, with some being high-stakes issues that could significantly impact policy and funding priorities.