March 5: Joint Budget Committee

Representative Lane Jean We’re going to call Joint Budget together. Everybody get in their seats. All right, members, it’s our intent today to finish up today so we will not come back tomorrow. And that all depends on the members, okay? 

When we do have questions, I’m going to go to the members of the committee first, and then the non-members will ask questions. And for that we’re going to start off with the Department of Human Services. Ms. Walls, you’re recognized. 

DHS

Shared Services

Lilah Walls Thank you, Mr. Chair. My name is Lilah Walls with the Bureau of Legislative Research. I’m going to present the appropriation for Shared Services and then follow with the presentation for the Secretary’s office without stopping. The appropriation of Shared Services is on page 50 of your manual. 

This appropriation pays for personal services for the secretary, and it’s funded by interagency transfers from other divisions. For fiscal year 27, the legislative recommendation is for nearly $356,000 with no changes from current appropriated levels. 

Next up is the secretary’s office. Their department summary is on page 52 of your manual. This appropriation pays for– I’m sorry, this division houses the core business functions for the department and has total authorized appropriations of approximately $86.6 million with 650 positions utilized across the department. There’s four appropriations that are funded with general revenues, federal funds, and other funds. 

The legislative recommendation for this division is approximately $86.7 million with no significant changes. So I’m going to discuss the operations appropriation briefly. On the second to the last line on the appropriation section in the summary it says DHS admin paying account. Also 896 is the number at the beginning. 

This is the operations appropriation for this division. It’s funded with general revenue, federal funds and other sources that are determined primarily by the department’s cost allocation plan. This comprises the majority of the division’s total appropriations at nearly $70 million. And this concludes my portion of this presentation. 

Representative Lane Jean Thank you, Ms. Walls. Department, do y’all have anything to add? Just ready for questions? 

Janet Mann Good morning, Chair. Yes, sir. We would take questions. We have nothing to add. 

Representative Lane Jean Do we have any questions for staff or the department? Seeing none, I’ll take a motion for executive rec. And a second. Any discussion? All in favor say aye. Any opposed? It is adopted. Ms. Walls, I think you’re going on, aren’t you? 

Division of Aging, Adult and Behavior Health

Lilah Walls Yes, sir. Thank you, Mr. Chair. Next is the Division of Aging, Adult and Behavioral Health Services and their department appropriations summaries on pages 62 and 63 of your manual. 

This division provides support and protective services to physically disabled adults, older adults, and adults with behavioral health issues and also coordinates the state’s substance abuse treatment and prevention efforts. In fiscal year 26, the division has total authorized appropriations about $318.9 million with 1,197 positions and 13 appropriations funded with general revenues, federal funds and various program support. 

Representative Lane Jean Let me stop you. Our mic system is low. I’m just talking about the volume, so get it as close to your mouth as you can. We have members having trouble hearing. 

Lilah Walls Alright, do you want me to start over or continue? 

Representative Lane Jean No, you’re good. Go ahead from there. 

Lilah Walls The total legislative recommendation for this division is approximately $318.9 million with no significant changes. And I’d like to direct the committee to appropriations that may be of interest. We’re going to talk about their operations appropriation, which is about halfway down in the appropriation section. 

It says 896, Division of Aging, Adult and Behavioral Health. This is to pay salaries and operational expenses for the division, including the operations at the State Hospital and Arkansas Health Center. And it’s funded with general revenue, federal funds, and various program support, and comprises about half the total appropriation amount for the division at $148.5 million. 

The line directly below that is listed as 898 is the division’s grants paying appropriation, which is the primary appropriation for services to older adults across the state, including funds that flow to senior citizen centers. It’s funded by general revenue federal funds and various programs support for a total appropriation of $56.6 million. 

There are also two appropriations that don’t have expenditures at the top because they were moved here via governor’s letter in 2025. Those are the appropriations on line four for the Medicaid Tobacco Settlement Program and on line eight, which is the Independent Choices Grant. 

The actual expenditures for fiscal year 25 are listed in the pages for the Division of Provider Services and Quality Assurance, which is where those appropriations came from. And this concludes my presentation for this division. 

Representative Lane Jean Members, we have some questions. We’ll start off with Representative Cavenaugh. You’re recognized. Hold on. 

Representative Frances Cavenaugh Thank you, Mr. Chair. Thank you. Thank y’all for coming. Not that you had much choice, but thank you for being here. Page, on 67 and actually 69, it’s dealing with the drug abuse and treatment and the mental health grants. 

I noticed that we’re projecting a big increase in federal funding. Is that money that we are expecting for specific programs? 

Elizabeth Pitman So I think that the amount you’re looking at, we’re not expecting any increases in our grant funds that are coming in for either of those. We have block grants that we get biannually. And then we have three discretionary grants. So we are not expecting increases in any of those grants at this time. 

Representative Frances Cavenaugh Okay, well the reason I’m asking is your federal revenue shows your actual was 27.9 but you’re asking for 56.7 in federal funding. So are are we expecting a jump in federal funding to that amount? 

Elizabeth Pitman So I think the way this is working is that we always are spending basically a year behind because it’s in a federal fiscal year. And so when that money comes forward. So right now we’re paying from our block grants from the previous federal fiscal year. And so we’re always bringing that forward. So we need that space. 

We also are looking at, sometimes we do get increases and sometimes there are changes. We also occasionally get technical assistance grants that we have the opportunity. So we want to make sure that we have the opportunities to go after any grants if they come up, but we are not expecting– there are sometimes changes in both of those block grant amounts. But they are formulary grants, and we don’t know about that in advance. Typically we get very little notice. 

Representative Frances Cavenaugh Thank you. 

Representative Lane Jean Thank you, Representative. Senator Rice. Hold on. You’re recognized.

Senator Terry Rice  Thank you. Director Mann, if you would go back over. I heard you say seniors. I’m sorry. I’m having a little trouble hearing. What was the seniors you were talking about? Whoever was giving that, I’m sorry. 

Lilah Walls Yes, that was for the appropriation summary for 898, which includes the funds that flow to senior citizen centers. And that’s on page– hang on just a minute– 78 of the manual itself. And it has different line items that are included in there. And senior citizen centers is one of them. 

Senator Terry Rice Okay. And Mr. Chair, I can get back in the queue. But I’ve got questions on that, if you want it now or later. Okay. And Director Mann, can you tell me on the senior centers on Division of Adult and Aging, are we going backwards on those? 

Janet Mann Thank you for the question, Senator Rice. I will start, and then Director Hill will correct me if I get this wrong. It has been bumpy due to– 

Senator Terry Rice You can just pull that mic towards you. It’ll come over. 

Janet Mann How about I just scoot up? Is that better? 

Senator Terry Rice Yeah. 

Janet Mann Yes, sir. It has been bumpy with government shutdown and potential shutdown and then the flow of federal funds timely after the shutdown. We are back to normal levels is my understanding. I’m looking at Director Hill to shake his head. Yes. So I do not believe we are going backwards. I think it’s been timing. 

Senator Terry Rice Okay. And senior centers specifically. 

Janet Mann Yes, sir. Some of the Older Americans Act were halted during the shutdown. So it did impact some of the functions of the senior centers, but not the senior centers in total. 

Senator Terry Rice Is there going to be makeup money for that time? 

Jay Hill So, Senator, those funds have been received. When the shutdown occurred, the funding for the Older Americans Act comes in several different streams. It’s all under Title– the majority of it’s under Title III. Two of the specific lines of funding, the agency exhausted for supportive services and for congregate meals. 

Once the government, once the shutdown ended, those funds were received. The senior center– the AAAs, area agencies on aging, who are the passthrough for the funding that goes to the senior centers, have received that funding. And so we are not in a deficit from what we expected to receive. 

Senator Terry Rice And it’s not addressed at any of y’all, particularly at the table. But I want to say this for the state of Arkansas. I continually ask– I have for the last few years and tried to advocate for our nursing homes, our assisted living, our senior centers, just seniors in general. Because they deserve our respect. 

And if we, as a state and a nation, can’t show that, but yet we can give extra millions of dollars to households that have incomes that can private school with or without any assistance of the state– and I’m not saying I’m against that– and we’re not doing enough for some seniors. And that’s shameful in my book. 

So I wish we would think about that in this budget session and see if we can’t do something. We’ve got senior centers that have shut some meals down. If we can do anything and we can hire these consultants for mega bucks, let’s put some money and show some respect to people that lived before us and worked hard and have done everything they should and try to help them out a little bit. 

And, again, not addressed at y’all. Appreciate what you do. I appreciate the fact that I think you’re concerned. But you’re only going to do what we tell you to do and what we put money out there to do. So Mr. Chair, I offer that for all to chew on. 

Representative Lane Jean Thank you, Senator. Representative Clowney. 

Representative Nicole Clowney Thank you, Mr. Chair. I am looking at page 73 and I was kind of getting settled when y’all were doing the overview. So apologies if I missed this already. 

But I’m curious about these numbers for the Medicaid Tobacco Settlement program. I’m seeing there was zero spend in 24-25 and then it was in the budget last year. Agency request for the upcoming year is zero. Can you just walk me through what’s going on with those numbers? 

Jay Hill The Tobacco Settlement funds came to the division in the 25 session. Previously, this program was housed with our Division of Provider Services and Quality Assurance. This supports the options counseling program– sorry if I’m not close enough. These funds support the options counseling program. 

Representative Lane Jean Let me stop you right now. The more mics we have on– Ms. Eubanks, you turn your mic off if you’re not using it. It kind of helps. 

Jay Hill So the funding, since 25, this is the first subsequent year that the funding has actually been in Division of Aging, Adult, Behavioral Health Services, which may be why you’re seeing it as now. 

Representative Nicole Clowney Okay. And then what about the agency requests being zero for the upcoming year? 

Representative Lane Jean Ms. Walls. 

Lilah Walls The agency requests that are listed here are the agency requests that were also in the 2024 regular session budget hearings. So there were not– 

Representative Nicole Clowney Got it. 

Lilah Walls This was not a thing then. But there are expenditures in these appropriations. They’re just in a different division of the department. 

Representative Nicole Clowney So even though they’re in the 26-27 column, they are about the 24-25 year. 

Lilah Walls Well, the expenditures for those, for that division, because they were made for another division, for the Division of Provider Services and Quality Assurance, those expenditures are in their section further on in the manual. And if you’d like me to, I can refer you to those pages. 

Janet Mann Let me try to clarify. We are moving these expenditures to the Division of Aging and Adult Services with Behavioral Health. The previous expenses will be found located in another division, DPSQA, Provider and Quality Assurance. 

Representative Nicole Clowney Okay, thank you. 

Representative Lane Jean Are you through, representative? Representative Wooten, you’re recognized for a question. 

Representative Jim Wooten Thank you. Thank you, Mr. Chairman. I want to follow up on the comments made by Senator Rice. The senior citizens have served the state well. The centers are not being taken care of as financially like they should be. And I don’t see any big increase in your budget for the senior centers. 

Janet Mann No, sir. There are very little increases in our budget for anything this year. We are operating within our means, and we are serving our citizens as adequately in the past couple of years with a flat budget. And so that’s what we are striving for. 

Representative Jim Wooten Well, is the request coming from the federal government to hold the spending down? Or is it coming from the governor’s office? 

Representative Lane Jean Mr. Wooten? 

Representative Jim Wooten Yes. 

Representative Lane Jean On the last budget, outside the RSA, we put an additional $2 million for fiscal 26 and 27. So they do have additional funding coming but it’s outside the RSA. Just to kind of–

Representative Jim Wooten Okay, follow up. I’m getting an awful lot of complaints relative to families, developmentally challenged centers and that type of thing relative to employment. What is your total employment in your department? 

Janet Mann Total employment in the Department of Human Services is approximately 6,603 employees. And I think you were referring to the HDCs, or the Human Development Centers, which is housed in our DDS budget. So we have approximately 2,500 employees of that 6,600 delivering direct care. And it is an ongoing, it is ongoing practice. We do turn over a lot of those positions. So we are consistently hiring CNAs and working through that hiring and training process for the HDCs. 

Representative Jim Wooten Okay, what is your total employment for the total department? 

Janet Mann Yes, sir. For the Department of Human Services, total is 6,600. It’s a little over 6,600– about 6,610 at the most. 

Representative Jim Wooten Of those, how many vacancies are over two years old? 

Janet Mann Of the vacancies that are two years old? 

Representative Jim Wooten Two years or older. 

Janet Mann I think, according– Ms. Eubanks just said, we have about 95 positions that fell in that two-year or older category. 

Representative Jim Wooten Just 95 out of 6,600 positions? 

Janet Mann Yes, sir. 

Representative Jim Wooten What worries me about that is the fact that how many of those are budgeted. 

Janet Mann Well, we have a combination of budgeted and unbudgeted. But we have budgeted about 6,600 positions. 

Representative Jim Wooten See that’s what worries me. And I don’t know that the secretaries and the division directors and others are keeping up with the number of employees that their positions are over two years old and they’re budgeted. Thank you, Mr. Chairman.

Representative Lane Jean Thank you, Representative. Senator Flowers, you’re recognized for a question. Hold on. There you go. 

Senator Stephanie Flowers Thank you, Mr. Chair. Trying to figure out the summary for– and I’m on page 62– the Department Appropriations Summary, the funding sources. It seems like there’s not the highest amount coming from general revenue. 

How do we know where each of the funding sources, I guess the special revenue, is spelled  out for tobacco and Meals on Wheels transportation. But, and I don’t know if that’s a part of this summary or not, but I’m trying to figure out, what does the general revenue and all these other funding sources pay for? Is that delineated? 

Janet Mann Yes ma’am. So we will use the state revenue listed here and match it with the federal revenue to provide the services for the aging and adult services and the behavioral health services that are in this division. 

That includes the ASH, the psychiatric hospital. It also includes the Arkansas Health Center, which is the state’s nursing home. And then it includes federal grants for aging and older Americans. And it includes grants for substance abuse and mental health. 

Senator Stephanie Flowers You’re just there representing the Division of Aging, Adult and Behavioral Health. What about these other programs, community alcohol safety, alcohol and drug abuse prevention? Do you all administer that too? 

Elizabeth Pitman Yes, ma’am. We do administer the community alcohol safety in the alcohol and drug abuse prevention programs. 

Senator Stephanie Flowers Well, what does that involve? About $2.5 million. Where is that funding source? Is that your federal revenue grants? 

Elizabeth Pitman Our community alcohol and safety program is a program that is for providing services for individuals who’ve gotten a DWI or DUI. And that comes from AOJ funds and then there’s some funds where the individual who’s received that ticket pays in for receiving a service, basically a class. 

Senator Stephanie Flowers Okay, so the Administration of Justice funding. Allocation of 55% back in 26 and 40% projected for 27. So is that fund a part of the state revenue, the general revenue, or is that a cash fund? And there’s zero for that. Where is that reflected in the funding sources? 

Staff That’s funds that we received disbursed to us from another state agency. 

Senator Stephanie Flowers So that would be a transfer? Interagency transfer? 

Staff Yes, that’s correct. 

Senator Stephanie Flowers But you have zero in this table on page 63. 

Staff I believe if you look at the individual pages, so if you look on page 65, you will see the allocation there on the line that ends 470 state administration of justice there. So that’s where that is, rather than in the summary tab. That is our projected allocation pursuant to the footnote. That’s correct. 

Senator Stephanie Flowers For the community alcohol safety program? 

Staff Yes, ma’am. 

Senator Stephanie Flowers So does that reflect the defendant or whoever’s been ordered to go and get these services? Their fees that they pay, where are they represented? 

Staff I don’t know. That would be in another agency’s budget. We’re just the end recipient of this percentage of those funds. 

Senator Stephanie Flowers But you do receive them? 

Elizabeth Pitman Yes, those funds come back to us through the provider of that service. So when those come to us, it comes in in a different fund and then we send that back out. So we combine those two pots of money, the AOJ funding and the funding that we receive from the provider. And then we send back out to the provider to provide those drug court or those drug alcohol education programs. 

Senator Stephanie Flowers Well, why wouldn’t it be reflected in your budget as to funding source, as a funding source. Where would you find numbers of how much is being paid by individuals that are receiving these services? 

Elizabeth Pitman It is in the various program support. That’s where it’s coming in, on page 65, on the various programs support line. 

Representative Lane Jean Does DFA want to come forward? You got it? All right. You look very complex over there. I was a little worried about you. 

Senator Stephanie Flowers I don’t see anything that’s being recommended. And the last historical data was from 2024, 2025 for various program support and it was a million dollars. I’m trying to understand, where is that money reported? 

Janet Mann Senator Flowers, I think we’re going to have to take that one back and get you some more detailed answers. Because we receive that money as a transfer and then we use it to provide programs.

 And those programs are eligible for beneficiaries, recipients that have received DWIs. And then we pay for those courses. After that flow of money, those further details we would have to take back and get some further details for you. 

Senator Stephanie Flowers Well, I’d like to see how the funds are traced. It should be reflected in how many people are using that service, because that’s not a whole lot of money for that program. You’re operating all over the state, aren’t you?

Elizabeth Pitman  Yes, ma’am. We are operating all over the state. Those programs are provided in group settings so they’re not individual education programs. And so they are running those classes as people in those areas receive those court orders to attend classes. So they’re being run regularly in each of those areas. 

Senator Stephanie Flowers And the same thing for the alcohol and drug abuse prevention, which receives a recommendation much greater than the community alcohol safety. And I would think that there has to be some referrals for the Alcohol and Drug Abuse Prevention as well. 

Elizabeth Pitman Yes, ma’am. The alcohol and drug abuse prevention is to pay for treatment services, both prevention and then treatment services So those treatment services include outpatient counseling, residential counseling. And so if someone is identified at that point and needs treatment, then they come over under that drug and alcohol program or their insurer pays for that treatment. 

Senator Stephanie Flowers And so the 49 million there, that’s reimbursement or at least reflects the cash fund source? And there’s zero on that at funding sources at the bottom. 

Janet Mann Yes ma’am. That specific alcohol and drug abuse prevention is primarily federally funded. So this is our, the executive recommendation is our request for appropriation to be able to deliver those treatment services. 

Senator Stephanie Flowers And the money comes from the feds? 

Janet Mann A lot of it does, the majority of it, yes ma’ am. 

Senator Stephanie Flowers Okay, I’d be interested in knowing how many people are served under those two programs of community alcohol safety and alcohol and drug abuse prevention. 

Elizabeth Pitman Yes, ma’am. We collect that data. We can get that to you. 

Senator Stephanie Flowers Okay, thank you. Thank you, Mr. Chair. One other question I had. 

Representative Lane Jean Brief. 

Senator Stephanie Flowers Okay, well this one is short. It was a follow-up about the Tobacco Settlement questions that you got from the representative. So why do we still have this page 73 if some other agency is administering? I’m trying to understand why there’s no agency request, but there’s a legislative recommendation and an executive recommendation. 

Jay Hill So, Senator, the program’s not administered by another agency. It is administered in the division. It moved to our Division to Aging and Adult Services, Behavioral Health, from Provider Services Quality Assurance, which is just another division within DHS. But the program is operational and they do work every day. 

Senator Stephanie Flowers So your agency, then, is satisfied that whatever is not accounted for or specifically laid out under agency request, is rolled up in some– is that Shared Services? What are we talking about? I don’t understand. Where do you find the $1.3 million in terms of your agency? 

Staff That was originally contained in provider services and quality assurance under our biannual budget. Then in the course of those hearings, we filed a governor’s letter requesting that the program appropriation and funding be moved to Aging Behavioral Health so that the services would align better. And so it’s a lateral transfer from one division within DHS to the other. 

Senator Stephanie Flowers I just don’t understand why we need then page 73. Why aren’t those numbers–?

Representative Lane Jean Senator, why don’t you let the staff get with you? You’re going a little farther in detail. And I think they can do that better one-on-one. Thank you. Thank you. Senator Petty, you’re recognized. 

Senator Jim Petty Thank you, Mr. Chair. My questions are around the mental health grant, and more specifically, the Veterans Mental Health Grant. I noticed that there’s a fairly sizable anticipated federal revenue increase in the mental health grants. But my question is more around the Veterans mental health. 

And I’m wondering if it’s on page 86. It talks about not having a funding source yet. And I’m wondering if the anticipated increase in federal funding is a possible source for funding some of the veterans mental health grants. Because at least at this point it shows there’s no funding source identified. Can you comment on that in general? 

Elizabeth Pitman So for our mental health, and that’s a block grant that we receive biannually. And we spend all of that currently on community mental health centers. So that goes out to community mental health centers and then there’s required federal set asides for certain programs for that as well. 

So we have to direct some of that to different programs supporting people with serious mental illness and for children and youth with serious emotional disturbance. And so those funds come in to us and then we send them out to the community mental health centers, largely to pay for services for individuals that are not insured. 

Largely what we have now of individuals who are not insured are those that are in our forensic system. So when people go to jail, their Medicaid is turned off or their commercial insurance, and so we have to provide services for people either in jail as they’re moving towards our state hospital. So all of that money is committed and spread across the state, covering all 75 counties and all 71 jails. 

Senator Jim Petty Follow-up, Mr. Chair. Thank you for that explanation on the mental health portion. Can you comment on the veterans mental health? There’s an appropriation request for $5 million that I think we would all probably like to find funding for. But have you internally identified any potential funding sources or had any conversations about that?

Elizabeth Pitman It originally had some funding attached to it. That was before. So Jay’s talked to me about that. And we have not had any additional funding for that program. And again, with our mental health block grant, we’ve had to allocate all that money to those services. And so we don’t have an additional funding for that. 

Janet Mann I would just like to add that this was a member’s bill that was appropriation only and has not been funded. 

Senator Jim Petty Right, I realized that. I just was wondering if you guys had had any success identifying from other sources of funding. And I’m assuming the regular, for lack of a better description, mental health grants, don’t exclude veterans. Members, we just haven’t identified a funding source yet. 

Janet Mann Yes, sir, that is correct.

Senator Jim Petty Thank you. Thank you, Mr. Chair. 

Representative Lane Jean Thank you, Senator. Senator Tucker, you’re recognized. 

Senator Clarke Tucker Thank you, Mr. Chair. I’m going to ask y’all about CSU funding. It’s on page 88. I see Paula. She’s not shocked to know that that’s what I would be asking about. I just see where– I’m just curious. I mean, is the funding going to– I see the legislative recommendation, the executive recommendation is 5 million each. In the budget this last year, it was 3,240,000. But is the funding going to remain consistent or what’s our situation? 

Elizabeth Pitman So currently, we have two CSUs in operation. And so we are funding those two CSUs at the level that they had been funded at in previous years. And we are looking at that full crisis continuum and making sure that we can provide crisis services and really doing that analysis of why those CSUs were not successful or why they were not able to stay open. 

So really thinking about how do we use that crisis funds to get us to that goal that was originally set that we have for the crisis stabilization unit. So we have that money for crisis services. 

Senator Clarke Tucker But so the funding for Craighead and Sebastian County is going to remain consistent?

Elizabeth Pitman It is for next year. 

Senator Clarke Tucker And I know, I mean, what happened in Pulaski County is the provider left. And I knew the county is still looking for a successor provider. And if they were able to identify one, would they be able to pick their funding back up or what? 

Elizabeth Pitman Yes, we’ve worked with them on that successor provider, had many conversations with potential providers. And no one’s been able to come to the table. I will say that we are doing– we have some crisis funding that came through another source and we are looking at analysis of that and to see how we can best support Pulaski County in using crisis funds in the most expedient way. 

So we’re looking at that, working with MEMS and doing some other things with ambulance services and then care coordination to make sure that people are getting to the right source. 

Senator Clarke Tucker Okay, that all sounds good. I guess my, I mean, one thing that just caught my attention is that if you look at the budget page on 88, it says it’s got 4.8-plus million in excess appropriation and with nothing in GR or whatnot. And just from a financial standpoint, that may be similar to what some of the other members have been asking about on other appropriations. But I’m just curious. 

Janet Mann I’ll begin and Paula will correct me. We have funded that with a combination of state and federal monies depending on the grants that have come through. So we will continue to do that. But this general revenue is very tight and flat for crisis. 

We try to match money and use it. We have added some Medicaid services for 23 hours or less, trying to have the ability to grow those crisis services. That has not seen the uptake that we would like it to take, which is why we are continuing the crisis study for the whole continuum of what needs to be there. 

Senator Clarke Tucker But either way, the funding will be there one way or another, is what you’re telling me. Okay. All right. Thank you. 

Representative Lane Jean Thank you, Senator. Senator Irvin, you’re recognized. 

Senator Missy Irvin Just a really simple question. On the community alcohol safety grants, not to beat that one, but on page 65, you have a fund balance there. If there is a fund, and I’m not sure if the AOJ funding that comes over, is there ever a mechanism to where if you already have enough funds in your fund balance that that transfer is not necessary? That you have the ability or mechanism to do that or to not have the transfer from the state AOJ fund or redirect those funds? 

Staff Those allocations are in special language so we get what is allocated to us. 

Senator Missy Irvin Okay, so the AOJ funding that you get is through special language? 

Staff Yes. 

Senator Missy Irvin Okay. And is it, I’m just curious that maybe we could look at that. Just because if we have an ample amount of money in a program utilizing a fund balance and we can redirect or allow for the ability of a little bit more flexibility with the AOJ fund that maybe we should look at revisiting some of that special language, in my opinion. 

Just because there could be other areas which have been identified, I think, by several other of my colleagues where maybe we could look at how we can better utilize these funds instead of having them just sit in a fund balance. How do we get them out the door? 

And so if you’ve got a fund balance and it’s not necessary for us to receive a transfer from AOJ, how can we give the flexibility to your agencies to make that determination? You could bring it back for us, obviously Peer or something like that. But I’d like to be able to see some flexibility there, where we’re not just stacking money up in a fund balance that we don’t need if we don’t need it. 

Does that make sense? So if you will look at that for me, I’d really appreciate it. And then my second question is on the patient benefits. Was that legislatively created? I mean, it’s not much money, but it’s kind of interesting to me.

Representative Lane Jean What page are you on? 

Senator Missy Irvin I’m sorry, 79. Patient benefits. It’s cash and treasury, so it looks like it’s donations and interest and parking meters proceeds. On page 79. I’m just wondering if that was legislatively created or how is that determined, how is that–?

Staff I would need to take a look at the history on that and can definitely get back to you, but you’re correct. It is supported with just the funds outlined here, some donations and things of that nature. 

Senator Missy Irvin Okay, so, I just, this one doesn’t seem like a real clear use of money to me, or how it gets used or applied for.

Jay Hill Thank you, Senator. So those funds are divided between both the state hospital and the Arkansas Health Center. And primarily what we use that for are for personal needs for residents when they have no revenue source, they have no family. For instance, we often get admissions that come to us with literally what they’re wearing. 

Senator Missy Irvin Got you. 

Jay Hill And nothing else. And so we’re able to buy some of the, just the very basic needs that they have, just for the residency, the long term residency, whether it’s at the hospital or at the health center. 

Senator Missy Irvin Well, I appreciate that. In my opinion, again, in my opinion when it says patient benefits, that means patients in every single part of the state and anyone. I just think maybe let’s be a little more specific about exactly what the need is and how we title that, maybe. 

Just because I think that’s worthwhile and I think that’s worthy. And if people want to donate to something like that, let’s be specific that this is a fund specifically for that and let’s title it that way, in my opinion. Just because patient benefits just seems like, well, what’s that? Well, can I apply for that or can my patients apply for the item if I’m– it just seems wonky to me. 

So let’s just try to– I appreciate it. It’s a great thing. I myself might want to donate it to it, but I wouldn’t know what it’s actually going for. And so if we can be more clearly defined in it, maybe people will continue to donate to it because that’s a worthy cause. That’s a worthwhile thing. I know this because you’ve got people that are lingering in county jails and then they get to ASH. They have nothing, absolutely nothing. And this is a fund, from what you’re saying, that provides for just their very basic things that they need and maybe a comfort, a blanket. 

Jay Hill Yes ma’am. We can provide you with a summary of how those funds are utilized. 

Senator Missy Irvin Yeah, that’d be awesome. And let’s just kind of look at trying to be more intentional and focused on how we’re talking about this and how we label it so that the state knows and that people know, hey, this is available and you can make a donation to the cash treasury and people can be taken care of. I think that’d be a really cool thing. 

Representative Lane Jean Thank you, Senator. That’s the last member of the committee. We’re going to non-members now. Senator Love, you are recognized. 

Senator Fred Love Thank you, Mr. Chair. So actually Wendy just pointed out something to me. I want to go back to the senior centers. 

Representative Lane Jean What page are you on? 

Senator Fred Love I’m on page 78. So the senior centers, I’m looking at for 2024, 2025, the actual was a little over $7 million. The budget was at $5 million. So we’re looking at, now we’re looking at about a $10 million increase. 

Jay Hill No, sir. They’re appropriated for 10 million. Their budget, the state general revenue line is for 5 million. The excess appropriation does give us some room to expand additional funds when those are received.

 For instance, each year there is a date, there’s a sweep up to 500,000 general revenue from the agency that goes to the senior centers, as the chairman mentioned. There was an additional 2 million that was granted to senior centers outside of RSA, both this current fiscal year and it ends for the upcoming fiscal year. 

And so the excess appropriation allows us that bandwidth to be able to infuse those funds that are designated for senior centers outside of the base 5 million that is funded to the agency.

Senator Fred Love I guess my question is, because I noticed that it was funded outside of RSA, why are we not putting that funding inside of RSA? 

Representative Lane Jean That’s not a question for them. That’s something we did. 

Senator Fred Love Well then, Mr. Chair, I wanted to come to you. Why is it that we’re not funding it within RSA? 

Representative Lane Jean Well, I mean–

Senator Fred Love Is that going to be one-time funding?

Representative Lane Jean Well it’s not one-time funding because we did it two years. That’s something we’ll revisit in the next regular session. 

Senator Fred Love All right, so I would think that we should be funding it within RSA. All right, so let’s go to the Senior Hunger Program. I noticed that there was no– and I think the Senior Hunger, the Meals and Wheels– 

Jay Hill Yes, sir. So those are two different programs. The Senior Hunger Program, there was an appropriation grant to the agency. But there was no funding attached to that. 

Senator Fred Love Okay. Was that a member’s bill? What’s the case? 

Jay Hill Yes, sir. 

Senator Fred Love All right. So that would be separate from the Meals on Wheels. I see that we requested $2.4 million for Meals on Wheels. Is that correct?

Jay Hill Yes, so the Meals on Wheels is funded primarily through cigarette tax. It’s not a tax based on the amount of sales. It’s a per pack tax. It fluctuates from year to year. It is appropriated at 2.4, I believe. But what you see, the funding request really follows the trend from this past year.

Senator Fred Love Do you see us receiving the $2.4 million? Is that why you projected that? I mean, where did that number come from? 

Jay Hill That’s more of a historical projection for appropriation. But what we’ve seen in really the last several years is a steady decline, even if it’s gradual, in the number of cigarettes that are sold in the state. 

Senator Fred Love So I guess I’m still at the point, the $2.4 million you put for the appropriation, do you foresee that amount coming in, or do you not see that amount coming in? Where did that number come from? Why did you all put the $2.4 million versus what would the projected actual be so that we could look to see if we needed to fund the Meals on Wheels program? 

Jay Hill So the budget request is what the projection is. It’s what we do project to receive in actual funds from the tax revenue. We would love to have, obviously– I guess I shouldn’t say we want more people to smoke in the state. I won’t say that. 

Senator Fred Love Don’t say that. Don’t say that. But I understand what you’re– yeah. Jen is like, oh no, don’t say that. No, no, I understand what you are saying. I just want to know if the $2.4 million that you’re putting for the budget, do you anticipate that revenue coming in? Is that an actual projection? 

Jay Hill Not based on our projections. 

Senator Fred Love Okay. So where did that number come from? Why are we using the$ 2.4 million and not a number that’s more representative of what’s going to be generated in sales tax? 

Jay Hill That has been a historical request. It was, at one time, that was much closer to what the tax revenues to the agency were. 

Senator Fred Love Okay, so are we falling short on the Meals on Wheels program? 

Jay Hill No, sir. The Meals on Wheels program is not the only funding stream that funds meal services, home delivered meals. Those services are also provided through our Title III funding through the Older Americans Act. And so our senior centers, our AAAs also have funding streams under Title III C2, which funds home delivered meals as well. Meals on Wheels is a supplement to that program. 

Senator Fred Love All right. Thank you. Thank you, Mr. Chair. 

Representative Lane Jean Thank you, Senator. 

Representative Lane Jean Represent Ladyman, you’re recognized for a question. 

Representative Jack Ladyman Thank you, Mr. Chairman. Just so you catch up with me here, I’m looking at page 150. And my question is about employees, kind of adding to what Representative Wooten asked earlier about you have, I think, now– 

Representative Lane Jean Hold on. We ain’t got to that division yet. 

Representative Jack Ladyman Well, I just want to look at the numbers. 

Representative Lane Jean Well, just hold on to that thought. And then when we get there, you can ask the question. 

Representative Jack Ladyman Well, forget the page number. I’ve still got a question 

Representative Lane Jean Okay, go ahead. 

Representative Jack Ladyman Representative Wooten asked about how many people you had or positions that were over two years old. You said 95. So what I’m looking at this page on DD over here, you’re down 164 employees there. 

And my question is, and I know that we’ve got issues with positions that we cannot fill because of the requirements of the position. I’ll give you an example in Arkadelphia at the Human Development Center, I think they have 12 RN positions and you only have five filled. And you’re doing contract nursing. I know that the work center up in Booneville– 

Representative Lane Jean Representative Ladyman, 2e haven’t got to that part of the budget yet. You’re asking questions before we even review it. 

Representative Jack Ladyman I’m just giving some background, Mr. Chairman. So I’ll just ask my question. These positions that are open, are they open because we don’t need to fill them? Are they open because they’re CNRAs, RNs, physical therapists that you cannot fill because there aren’t people that’ll take those positions. So which is it? 

Janet Mann So I think it’s a combination. I don’t know if I can answer it in total, that positions are either hard to fill or they are– well, I don’t know what the second part of your question was. But we are filling those positions regularly. Recruiting and retention has picked up in several different areas after the pay plan. 

And so we are trying to see that, see that level out specifically with nursing. But it’s also an ongoing discussion point because we do hire a lot of CNAs that are turnover. And so we are always recruiting and trying to retain. If we cannot fill those positions due to staffing ratios, we will go to the staffing contracts so that we do not jeopardize the health of any of our beneficiaries.

Representative Jack Ladyman I mean, the point I’m trying to make is some of these positions you can’t fill because in Arkadelphia, you’ve had those RN positions open for years, not been able to fill them.

Janet Mann I cannot answer specifically to a position in Arkadelphia. I can talk in total for DDS and other areas of the agency that we are always trying to recruit and retain. 

Representative Jack Ladyman Alright, thank you.

Representative Lane Jean  Senator Dismang, you’re recognized. 

Senator Jonathan Dismang Just a quick question. I think it’s just something I’d like to see as we continue to have a conversation about what we’re going to do with our senior citizen centers and our Meals on Wheels programs and all those sorts of things. I mean, those aren’t state agencies. 

And I know that some cities, counties make it a priority to add funding to those programs. And I mean, I hate to give you all homework, but I think it’s important that we have a bigger conversation about who’s willing to be engaged and creates and sets a priority for those programs back home and who does not. 

I understand there are limitations on how much money cities and counties have and some are in poorer areas than others. But I think it would be really, really important for us as members, if we can, get the numbers of what is being contributed by each city and county to the various, whether it be senior citizen centers or Meals on Wheels programs or the combination of the two so that we understand how they prioritize their needs in those areas. 

So then that will help educate us on, should that be matching? Should it be– what should that look like? And I don’t know enough to know. That maybe already be the case. I mean, if a city wants to make it a priority in its budget to send $50,000 to its senior citizen center or the county does every year, do we match that? Or when we send 50,000, do they pull back to 2000? 

And then we’ve actually then created a funding issue for the senior citizen centers because we’re contributing. So again, in a bigger picture way. as we move through this, and we, fortunately, as the co-chair has said, we’ve got a little bit of time. Hopefully we can get our heads wrapped around what we need to be doing. So again, I hate to create homework. But if that’s something we can get, I think it’d be great for the members to see. 

Janet Mann Yes, sir. I think we can try to obtain some information. And be more than happy to come back and even potentially bring our partners that work on those projects also. 

Senator Jonathan Dismang Yeah, I mean, the feds are trimming down their fund spend. We’re being asked to backfill that. There should be some responsibility at the city and county level just to make sure that they have got skin in the game and they also, too, care about what it is we’re working on. 

Representative Lane Jean Thank you, Senator. This is our last question. Senator Rye– excuse me, Representative Rye. Well, no, Lee Johnson wants to ask a question.

Representative Johnny Rye  Yes, sir. I’ll try to keep this as brief as possible. I just have a question. Mr. Chairman. Where is the line item within this that covers the transportation back and forth for the folks that they’re picking up and taking to the senior citizen center for their lunch and plus Meals on Wheels? They tell me that there’s nothing there at all and it’s been this way for years. I mean, what can we do to make sure they have the proper transportation? 

Jay Hill Transportation is included under their Title 3B services. Those are the supportive services. The area agencies are funded to pass that funding through to each senior center. It is disbursed on a set federal funding formula so that everybody gets, all the senior centers get the amount of money that is proportionate to the population. But transportation is something, is really one of the primary uses of that B funding for all of our counties. 

Representative Johnny Rye Yes, sir, but it’s not happening. And it needs to happen. Because why do you want to have a program if they can’t even get there to it? It’s in Lepanto. 

Jay Hill Representative, I’ll address that with our senior centers and I can get back with you with some follow-up information. 

Representative Johnny Rye Help us with this, please. Thank you, Mr. Chairman. 

Representative Lane Jean Thank you, Representative. That’s the final question. We have a motion to approve Executive Rec and a second. Any discussion? All in favor say aye. Any opposed? It is adopted. Thank you all. Ms. Walls, we’re going on to Family Services. 

Children and Family Services

Lilah Walls The next division we’re going to talk about is the Division of Children and Family Services. Their appropriation summary is on page 100 of your manual. This division provides support services, foster care, adoption, and protective services for children and families across the state. 

For fiscal year 26, it has total authorized appropriations of about $315 million with 1,420 positions and six appropriations funded with general revenues, federal funds, and various program support. Total legislative recommendation for this division is about $315 million with no significant changes. 

I’ll discuss the operations appropriation briefly. On the third line in the appropriation summary is the operations of appropriation for this Division. It’s funded with general revenues, federal funds, and various program support, and does fund the people who are the frontline workers and the rest of the operations at the Division. At nearly $148 million, this comprises almost half the total appropriations for this Division. 

I’d also like to point out to the committee that there are two line items that are both labeled foster care. The appropriation that’s listed on line two is for payments for foster care placements of children who are currently in the care of the state. The appropriation is almost entirely funded by general revenue. 

There’s another foster care appropriation that’s listed on line four. This one not only supports payments for kids in foster care, but also adoption subsidies for harder to place children once they’ve been adopted and services for foster children 16 years and older to help them prepare for independent living and adulthood. And this appropriation is funded by general revenues and federal funds. And this concludes my presentation for this division. 

Representative Lane Jean Members, do we have any questions? Representative Rose, you’re recognized. 

Representative Ryan Rose Yes. Thank you, Mr. Chair. You mentioned that there were no significant changes. Appreciate your presentation. Just a quick question. I was just looking at the 24-25, the 25-26, and then the 26-27 request. And it does seem that there has been an increase over those past three years of whether it’s budgeted, actual, or recommendations. I was curious if you could explain that from 24- 25 actual to the recommendation 26-27. It’s about a $30 million increase. Could you touch on that? What that is from and what that is funding? 

Janet Mann Yes, sir. Thank you for the question. I’m going to start and Director Wright and Ms. Eubanks will add in. We have added some things for state residential treatment. We are trying to also increase some of our adoption subsidies. Did I get that right, Director Wright? 

Tiffany Wright What you see is an increase. So the funding is there and the request for the appropriation remains there because of the flexibility that we need within our budget because we cannot plan for children who are entering and exiting our system, as well as the services that we need to provide to prevent foster care. 

You also see that we are continuing to increase the number of adoptions that we’re doing. And when we do that, and the child qualifies or the sibling group qualifies for a subsidy, that is a cost the state continues to bear if it is a federal subsidy or a state subsidy. So you see that continued increase happening. 

Representative Ryan Rose Couple of follow ups. The first, Miss Walls, I think it was you in the original presentation, you said that there was no funding change, no significant funding change. Did I interpret that correctly or did we miss something? 

Lilah Walls No, sir. There’s no significant changes in the levels of appropriation that this agency is asking for. Appropriation and funding are very different things. So they’re not asking for additional appropriation at this time. 

Representative Ryan Rose Okay. I follow. One other question that I have, if it’s okay to, I don’t want to jump too far ahead. On page 106, I think that this is kind of what makes up your funding here. So I hope I’m not deterring. There are the professional fees.

I look back over the past 10 years and it had been relatively level, maybe some minor changes into the last couple years. I look at the 25-26 budgeted amount, which was 15.5 million. And then the authorized amount was 33.2 million. 

You guys went ahead with the same kind of request and recommendation for 26-27. I was just curious if you could speak to kind of the doubling of the professional fees that are listed between the last year or two. 

Tiffany Wright So this is all of our new staff training, onboarding of staff, as well as travel, operating expenses, our salaries, and our fringe. So this is where all of the pay plan and all of that went into effect for us. And so the professional fees is around our new stuff training. And so as we continue to onboard and hire and train staff, and then if they exit the agency, we start again with training. So that would be what that is. 

Representative Ryan Rose The professional fees are the expenses for training and onboarding new staff and personnel? 

Tiffany Wright Yes. And then the other costs that go into that as well, including the operating, their fringe, et cetera. 

Representative Ryan Rose Okay. I don’t mean to belabor the point. You mentioned operating, but that’s a different line item. So I was just trying to figure out, are these grants or contracts with vendors or training specific groups? 

Tiffany Wright Yes. Sorry. 

Representative Ryan Rose No, that’s fine. All right. Thank you.

Representative Lane Jean Representative Painter. You’re recognized for a question.

Representative Stetson Painter Thank you, Mr. Chair. How many vacancies do we have in this department? Since that was a topic of conversation last department, let’s ask this department. 

Tiffany Wright Approximately 113. 

Representative Stetson Painter What’s the average length or the highest we have out there? Last one was like two years or plus. And if you don’t have it, you can get that to me. I just would like to know that. 

Tiffany Wright Oh, I have it right here. I’m sorry. So we have nine positions that have been vacant for two years or longer. 

Representative Stetson Painter Okay. And the other ones are less than that? 

Tiffany Wright Yes. 

Representative Stetson Painter Okay. Thank you. Thank you, Mr. Chair. 

Tiffany Wright Can I do one follow up to that? None of those nine positions were budgeted, so that’s why they remain vacant. 

Representative Lane Jean Representative Meeks, you’re recognized. 

Representative Stephen Meeks Thank you. I’m far right here. Just a quick question. How many children do we currently have in the foster care system? I don’t need the exact number, but roughly how many do we have? And do we see that number increasing, staying steady, declining? What’s kind of been the trajectory of that over the last couple of years? 

Tiffany Wright Yes, sir. Actually, as of Monday, there were approximately 3,400 children in foster care. That is a slight increase, not by much, but that number has continued to maintain in that range for the last several state fiscal years. 

Representative Stephen Meeks So it’s been fairly steady then? 

Tiffany Wright Yes. 

Representative Stephen Meeks All right. Thank you. Thank you, Mr. Chairman. 

Representative Lane Jean I’m sorry, we had a little conversation up here. Senator Irvin, you got a question? 

Senator Missy Irvin Thanks. Okay. Page 109, the Children’s Trust Fund, that was legislatively created. So my question is looking back at what was legislatively created in the 1980s and seeing if it’s a good use. I’m sure it’s doing good things. But is there the ability to combine this with something that we already also are doing that will address the same issue or same problem? 

Like, is that money better spent somewhere else right now or are we doing this somewhere else? And then this is just legislatively created and directed. And it’s a good thing– don’t get me wrong. But things have changed a little bit since 1987. So do we need to continue to just have a separate program? Or should that be rolled into something that we are also doing somewhere else? 

Tiffany Wright So we are using those funds for what we call our true primary prevention. So those are programs that you would not need child welfare involvement to access. And so one of those programs that you may have heard me talk about before is the Baby and Me program that we partner with the Arkansas Department of Health and UALR on. 

And that’s for mothers going to the WIC office to get services. And so we are using that to do primary prevention that could prevent agency involvement, which is a good thing, right, if we can serve families before they have to touch the child welfare system. We’ve also used some of that funding for community schools. 

So there’s some in Little Rock. There’s one in Batesville. And they have put together some programs that care for families. So I feel like the money is doing what it’s intended to do, which is that true primary prevention. 

We also invested that, invested those funds that we had because the law says we have to hit a certain cap before we can spend the money. And so we have invested those funds so that money can grow interest. 

Senator Missy Irvin So, I mean, I’m not arguing that it’s not a good thing. I think what I’m asking is the mechanism of that fund, and then could it be absorbed somewhere else in another? I’m just looking at administratively how we can simplify some of these things. Does that make sense? That’s more my question. Do the same things with this money. 

I’m not advocating to change. I’m saying administratively how we could combine it. I’m always looking for those opportunities, it seems like, where we can combine it. Or I don’t know if we get any federal match for this or not, but I think it’s something that we should look at. Maybe just look at it and you can get back with me.

Janet Mann Yes, I was going to ask if we could take this back and look at that within the agency.

Senator Missy Irvin Yeah, and I’m for what you’re doing with the money, not changing that. I’m just looking at the administrative issues, and then making sure that we can maximize the opportunity. I love that we’re investing it and getting interest. But let’s look at the financial analysis of that and see if there’s a way that you could hook that money somewhere else where we could draw down federal matching funds for it. Does that make sense? Okay. Thanks. 

Janet Mann Yes, it does. Thank you 

Representative Lane Jean Representative Wooten, you’re recognized for a question. 

Representative Jim Wooten My question is on page 106, and it follows along with the question earlier. Why would we have an actual expenditure of $18 million and then a request of $33 million? That’s on conference and travel expenses again. I think that’s the same question. But I don’t understand why we asked for twice what we had expenditures.

Tiffany Wright Also, those are also all contract types as well. So that gives the flexibility for my placement types as private, like private license placement agencies, growing foster homes, that kind of thing, the placement contracts for kids in foster care. So that’s why you also see that. So it’s the flexibility in the appropriation. 

Representative Jim Wooten Well, it’s going to double? I don’t understand. This is throughout the budget, Madam Secretary. It’s throughout the budget. It’s almost double. 

Representative Lane Jean Representative Wooten, of course you know this is an appropriation. And just because they’ve got an appropriations doesn’t mean they’re going to have the funding to spend it. 

And we have this, this is not unusual to have a higher appropriation than we have funding. So I’ve got for Representative Rose some detail on what they’re spending on this professional fees. And I’ll get them to send it to you too. 

Representative Jim Wooten Well, they brought up foster care. Can I ask a question relative to that? Foster care placement. Child’s placed a month. A month later, it’s taken away. It’s given to a non-biological grandfather. He works. His live-in girlfriend takes care of the girl during the day. Is that something you all agree with, that you agreed to? 

Representative Lane Jean Now, Representative Wooten–

Representative Jim Wooten And my question is–

Representative Lane Jean Representative Rose– I mean Representative Wooten. Wait a minute, wait a minute. I’m going to let you have the latitude, but we’re working into policy now and what people think, not budget. So go ahead. 

Representative Jim Wooten But we’re talking about a child’s life. 

Representative Lane Jean I understand that. I understand that.

Representative Jim Wooten Okay, but my question from a budgeting standpoint, does the state save money or does it cost money? Does that grandfather get paid for taking that child in? And we reach out from a given home and take a child away and we’ve already placed her. She couldn’t walk. She can’t fairly talk. Do we save money doing that? And that’s what I thought. Thank you, Mr. Chairman. 

Representative Lane Jean Thank you, sir. All right, that’s our last question. I need a motion for executive rec. Have a motion and a second. Any discussion? All in favor say aye. Any opposed? It is adopted. We’re going to county operations. Miss Walls. 

County Operations

Lilah Walls Yes, sir. Thank you, Mr. Chair. Next division is the Division of County Operations. Their appropriation summary is on page 115. This division is primarily responsible for administering local office locations across the state, determining and redetermining eligibility across multiple need and asset-based programs and enrolling eligible applicants in those programs. 

For fiscal year 26, it has total authorized appropriations of $327 million with 2013 positions and nine appropriations funded from general revenue, federal funds, and various program support. And the total legislative recommendation for this division is $327.5 million with no significant changes. 

I’ll discuss the operations appropriation briefly. On line four of the appropriation section listed as 896, Division of County Operations, is a line for the operations program. It’s funded through general revenues, federal funds and various programs support, and has an appropriation of $194 million, which is nearly two-thirds of the total appropriations for this Division. Mr. Chair, this concludes my presentation. 

Representative Lane Jean All right, we’ve got some questions. Representative Cavenaugh, you are recognized. 

Representative Frances Cavenaugh Thank you, Mr. Chair. My question is going to be on page 132, the summer EBT. I just want to make sure I understand what’s going on. With the summer EBT, we have a legislative recommendation, no agency request and an executive recommendation. Is that because that is in another area? But we do have actual expenditures in 24-25 and 25-26. 

Janet Mann Yes, ma’am. Thank you for the question. I will start. Director Franklin will correct me if I get it wrong. This was a new program two years ago, so it has not been built into the biennial budget yet. We wanted to make sure it was successful. And as we continue to see success and refine that program, I believe it will become part of the biennial budget request, or at least the agency will request that in future bienniums. 

Representative Frances Cavenaugh Okay, so you’re not asking for it, but the executives recommended it be part of your budget? 

Janet Mann Well, it was not part of our original budget request when we did this manual two or three years ago. And so we’ve always come to you all with, I think, a various temporary appropriation to fund it. And it’s highly federally funded. I think I believe it’s a total of $55 million, but it’s less than $3.5 to $4 million of state general revenue. 

Representative Frances Cavenaugh Yeah, most of it’s federal. But I guess what I’m saying is we need to adopt– I guess it’s going to be for staff. We need to adopt executive rec on this? Okay. Thank you. 

Representative Lane Jean Senator Flowers, you’re recognized for a question. 

Senator Stephanie Flowers I’m looking at the grants paying account and SNAP program, one for Employment and Training and the other, the farmers market program. Does that, what is proposed or recommended, take into consideration change of policy in terms of the requirements for individuals to participate in those SNAP programs? It seems like there’s more being recommended for those programs for the 2026-27 biennium as opposed to earlier 2024-25 and 2025-26. It’s getting an increase. So how does the policy change end up causing an increase? 

Mary Franklin Thank you for the question, Senator Flowers. Some of the money that funds the SNAP Employment and Training Program is formula funding that is shared with all states. And it’s 100% federal. And in addition to that, we work with providers who actually provide the Employment and Training Services. 

And they provide half of the funding to match with federal funds. And so sometimes this number changes based on the budget of the providers and what funding they have that they can match. And so  I would say there is an upcoming policy change that we will be bringing before the legislative body to implement mandatory Employment and Training. In these past couple of years, it has been a voluntary program. 

I don’t foresee any changes in this unless we add providers who are going to be able to expand the services and then we can use their match that they provide to ask for increased federal funds. 

Senator Stephanie Flowers Well, Employment and Training program isn’t new, is it? 

Mary Franklin It’s not new. We’ve had it for many years. 

Senator Stephanie Flowers So I’m trying to understand why the doubling of the recommendation if before it was authorized the same amount, but actual was half of that almost. 

Mary Franklin Well, and we are preparing to implement mandatory Employment and Training. And so we have, I mean, the appropriation request has increased for this year just to help make sure that we have the flexibility and the appropriations as we implement this program. 

Senator Stephanie Flowers So our policy change would serve to increase our expenditures in the SNAP program? I thought the whole point of the policy change for these requirements was somehow going to decrease the amount of money we’re spending. 

Mary Franklin This is specifically for the SNAP Employment and Training portion of the SNAP program. This is not about the– this doesn’t include the overall SNAP program. 

Senator Stephanie Flowers So it’s the Employment and Training and the farmers market program. 898, that line 898, SNAP is not only Employment and Training, but it’s the farmer’s market program. I mean, have you all, that’s paid with 100% federal funds. How much is that? Why don’t we have a breakdown when it’s a double service or program that we’re talking about when we’re looking at these numbers, these totals recommended? 

Mary Franklin Senator Flowers, we can get you that detail and bring it back. 

Senator Stephanie Flowers Yeah, I mean, is it half that we’re spending that we are wanting to appropriate the 5 million plus on just the Employment and Training? And is that going to be outsourced? We’re going to have vendors providing the employment in training? How is that working? 

Mary Franklin Yes, ma’am. We do work with providers for SNAP Employment and Training and they actually provide the Employment and Training services on the agency’s behalf. 

Senator Stephanie Flowers Thank you, Mr. Chair. 

Representative Lane Jean Thank you, Senator. Representative Garner, you’re recognized. 

Representative Denise Garner Yes, sir. I couldn’t find anywhere in here, I know we’ve talked before about the education for the SNAP changes. Where would that– that goes to community services. So the folks that the requirements are changing and SNAP, where do the funds come to educate them so that they know that those requirements are not ex parte, whatever the term is. 

But they’re required for two months or whatever, three months before. Where does that money come from and do you have enough? I’m really concerned that June is not time enough for them to make those changes in order to stay on, to stay with SNAP benefits. So where do I see that in the budget or is it? 

Mary Franklin That would be part of our administrative costs. You would see that in our operating expenses, our salaries, fringe, supplies and things. We educate our clients, particularly in the SNAP program where there is a requirement for an interview, with a caseworker. 

And that interview is a conversation between the clients and our staff. And new requirements are talked about. Rights and responsibilities are talked about. Upcoming changes, penalties for not complying with those changes. We do have that discussion in the eligibility interview. 

And beyond that, we would include information in our notices, and we would work with our DHS comms team for other things like social media and do those types of things, stakeholder outreach and engagement with our operating expenses. 

Representative Denise Garner And you think you have enough to do that to make sure that that’s happening? And then I would also ask just to make sure that we have that information so that we can post to our social media, to our constituents through social media or whatever. I’m glad to help with that, but we need that information. Thank you. Appreciate y’all. 

Representative Lane Jean Thank you. Representative Meeks, you’re recognized. 

Representative Stephen Meeks Thank you, Mr Chair. Just a quick question. I noticed you’ve got the very first appropriation, the city aid to the aged, blind and disabled. It’s an appropriation for $4,000. It doesn’t look like it’s been used. It’s the first one, appropriation 396, $4,000, not a whole lot of money in the grand scheme of things. 

But I’m just wondering, A, what that would be used for, and, B, if this is still needed. And if it’s not needed, is there an opportunity to maybe do a little house cleaning here, just eliminate it? 

Mary Franklin Thank you for the question, Senator Meeks. This appropriation has been in our budget for many years and it ties back to an agreement between the state and the Social Security Administration around SSI and state supplemental payments. So to try to make this concise, there is a declining number of individuals that may be eligible for this service that Social Security is paying on behalf of the state. 

And that appropriation existed in case the state needed to reimburse Social Security for those expenses. Basically, at this point, we have a credit with Social Security. So we have not had to dip into this fund. And I do believe that it is something that, if this appropriation were to be eliminated and we did happen to have this expense, we could come to the body with the various temporary appropriation requests in the future. 

Representative Stephen Meeks Okay. All right. Thank you. 

Representative Lane Jean Representative Painter, you’re recognized.

Representative Stetson Painter  Thank you. I’m going to ask the same question I asked last time. How many vacancies do you have? 

Mary Franklin We have approximately 206 vacancies. 

Representative Stetson Painter How many of those are two years or plus? 

Mary Franklin There were two and they were unbudgeted. 

Representative Stetson Painter And they’re not budgeted? 

Mary Franklin That’s correct. 

Representative Stetson Painter I like this trend compared to the first team that came up here. So thank you. 

Representative Lane Jean And Representative Rose, looks like you got the last question. 

Representative Ryan Rose Thank you, Mr. Chair. I’ve heard varying, whether it’s opinions or understandings, on some of the TANF funding or the block grant and transfers and all these things. It seems like there has been a changing of where those dollars are being allocated. I believe, correct me if I’m wrong, did some of these TANF dollars used to go to the child advocacy centers at one point in the last year or two? 

Janet Mann Yes, sir, they were one of the subgrantees that did receive money. There were approximately seven subgrantees in the past year. 

Representative Ryan Rose And now they are no longer receiving those? 

Janet Mann None of the seven subgrantees are receiving any new funding. They were all granted time only extensions to expend money that had already been granted to them through June 30th. So we treated all the subgrantees the same. 

Representative Ryan Rose So, if I understand correctly, from here forward, TANF dollars absolutely do not go in any form of a grant to child advocacy centers. 

Janet Mann At this time currently, we have not subgranted any new money to any subgrantees. 

Representative Ryan Rose Can you, within relative proximate amount of time– I’m not trying to drag this out, but could you just share a little bit about why? 

Janet Mann So, when TANF money transferred to the Department of Human Services, I believe that was on July 1 of 2023, there were reserves. And TANF granting or TANF spending, excuse me– you get a block grant, which is about $56.5 million a year. And I believe you have up to three years to spend it, or is it two years? You receive it annually. I think you have two years to spend it. 

So reserves had been built up. When it came from DWS to DHS, there were already sub-grants obligated. And as we worked through that process, we quickly– not quickly I should say– we discovered that we were over-obligated. So as we have worked through that process through last year, we have pared down subgrants to outside entities. We narrowed it down to seven. 

We subgranted them in six month increments to make sure that we had enough money to subgrant them. In May of last year, we told all seven subgrantees, the second half of the year, July 1 through December 31st, everyone would have a reduced subgrant to make sure that we have the funds to pay those subgrants. I believe it was a percentage reduction. They took that percentage reduction. 

Due to extenuating circumstances, one of those being the government shutdown and receiving funds, we granted time only extensions so that the subgrantees would have the ability to expend money January through June of this year if they had not already expended it through 12/31 of 25. 

So that is where we are now. So now, quick answer to a long explanation, I apologize, is we now do not have many, if any, reserves, which I think we’ve talked about with various committees while sitting at this table. So we are living within the block grant of 56.5, which is granted to the state of Arkansas in quarterly increments. So we’re trying to spend only what we receive. 

Representative Ryan Rose Well, thank you for that. And I do appreciate it, and I know it’s not a short answer. You’re having to, whether it’s prioritize or triage, where some of this funding goes. And I can appreciate that. And I understand that we don’t have the full actual for what was spent in 25-26. 

But I do see where the federal revenue, it looks like there’s federal revenue, TANF transfer for 24-25. Looks like moving forward, there is no TANF transfer. So, I’m just trying to determine if DHS and County Ops saw fit at one point in time to fund these child advocacy centers in appropriate ways. I think if we went around the table here, everybody would say, yeah, those centers do need funding. 

If there’s any way to see that, to come back as a priority in your TANF expenditures, how you do disburse those funds. I guess the question is how to get them to maybe a higher priority on the list of subgrantees. And I’m sure there’s other subgrantees who you are no longer funding either.

Janet Mann That is correct, sir. We are not doing any new subgrant funding to any of those seven or any other subgrantee. So we’ve not done any new money or any subgrants to anyone else. 

We are trying to get TANF stabilized and to have some reserves. Reserves are recommended as a best practice by the federal government to have almost a full quarter in reserves. And we got very dangerously close to zero. And so at this time, I don’t have an answer for you. I hear your request, but I don’t have an answer at this time. 

Representative Ryan Rose I think I’ll finish with this. The prioritization that you guys have to come to in making these decisions, that’s done through your team or through your office. It’s not something that we have in any legislative capacity where we’re weighing in on that. Is that correct? 

Janet Mann Actually, there is some special language that does designate how some TANF funds are spent. I believe that is for education and then CPI. 

Representative Ryan Rose I don’t mean to stop you. I just mean specifically on the decision making with the subgrantees. Is that an in-house? 

Janet Mann Yes, sir, it is done at DHS. 

Representative Ryan Rose Thank you so much for the explanation and the detail on that. Thank you for the latitude, Mr. Chair. 

Representative Lane Jean Representative Hammer. You’ve got a question? 

Senator Kim Hammer Thank you, Mr. Chairman. What is the current reserve balance in the fund? 

Janet Mann We will have to get it for you. I did not bring it this morning, I’m sorry to say. I brought everything else.

Senator Kim Hammer If you don’t mind getting that. Maybe get it to the chair so the chair can get out to committee members so we can know that. And then the second thing is, based on your projections, the full effects of the adjustments that are coming down from the federal government, that being factored into the entities that you’ve decided that would be the recipients of the money, do you anticipate that the reserve fund and the money coming in is going to be able to be sustainable based on current trends? Because the FMAP number changed, I know. So just hit on that real quick, if you would. 

Janet Mann I have a clarifying question. Are you asking about TANF or are you asking about an FMAP? 

Senator Kim Hammer I’m sorry, on TANF. And on the reserve, what you have in reserves on the TANF funds, the adjustments coming down from the feds and the organizations that we’re obligated to now. Do you think that we’ve leveled off and we’ll be able to continue to build a little bit of reserves? 

Janet Mann I believe so. But just to be, I just want to be clear and transparent. The block grant for TANF has not changed of the annual amount of 56.5. We just spent down our reserves to where we are now level setting on annual spending. 

Senator Kim Hammer Right. And that’s what I wanted to hear was the adjustment period for what you inherited and the organizations that are obligated or dependent and all the adjustments you feel now we’ve worked through that transitional period for moving forward. We ought to see some consistency then. Is that fair? 

Janet Mann Yes, sir. 

Senator Kim Hammer Okay, thank you. 

Representative Lane Jean All right, we’re going back around a second time. Representative Garner, you got a question? 

Representative Denise Garner Just to follow up from earlier. I think when we talked earlier, Mary, you said that the SNAP shift cost would be $25 million. And then yesterday Secretary Hudson mentioned $18 million. Can you just clarify? 

Mary Franklin Yes, ma’am. The SNAP administrative cost increases from a– well, decreases from a 50% federal match to a 25% federal much, which is going to increase the cost for the state. And the estimate for that is about 24 million. And I believe what Secretary Hudson was referring to yesterday in the 18 million would be, that would be for three quarters of the year because this cost does not take effect until October 1st. 

Representative Denise Garner Okay, great, thank you, appreciate it. 

Mary Franklin And if I may, I need to correct a number that I gave to Representative Painter. I told you two unbudgeted positions. There were three. 

Representative Lane Jean All right, hopefully our last question will be Senator Flowers. 

Senator Stephanie Flowers Okay, it’s short. And I’m just wanting to inquire about your statement that the feds want us to have a reserve fund. Is that for the TANF benefits, SNAP benefits? What is that for? And do they distribute the funds to the state and then they want us to hold them and not use them to have this reserve?. What is– is that it? 

Janet Mann Yes, ma’am. I was specifically referring to TANF funds in that statement of reserves. And that has been a best practice verbalized from our federal partners to DCO to hold in reserve for unexplained contingencies.

 A great example is when the federal shutdown went for 44 days, TANF was not funded until well 30 days after the government shut down. We did not have a whole bunch of reserves to continue paying any of our obligations that we use TANF for. So that is why that is a recommendation. 

Senator Stephanie Flowers So are the TANF funds that we receive as a state, that’s pursuant to some formula from the feds? 

Janet Mann Yes, ma’am. I believe it’s a formula for the block grant that’s applied to all 50 states. 

Senator Stephanie Flowers And a portion of that is TANF? 

Janet Mann No, ma’am. Our TANF grant is $56.5 million a year, which is distributed quarterly to the state. 

Senator Stephanie Flowers And that’s what they want us to hold a reserve of at least a quarter?

Janet Mann That is their recommendation. Yes, ma’am. 

Senator Stephanie Flowers And so that’s delivered, it’s in our state treasury. That reserve, is that where? 

Janet Mann No, ma’am. No, ma’am. We don’t have a current reserve. We are trying to level set and not overspend in that area. So I think moving forward, there will be lots of discussion of what should be held in reserve. 

Senator Stephanie Flowers And the reason we don’t have anything in reserve is because of the shutdown? 

Janet Mann No, ma’am. We don’t have anything in reserve because we had been over-obligated and we honored those obligations. And we’ve made reductions when we’ve had to make reductions in new grants to subgrantees. 

Senator Stephanie Flowers So does the state have an opportunity to request additional funding? 

Janet Mann No, ma’am, we do not. It is a formula. It is driven by a block grant, and it is distributed. If we were to request or had a way to ask for more money, that would mean a reduction to another state. And I don’t know how well that would go. 

Senator Stephanie Flowers Well, on page 115, it has restricted reserve fund, $2.9 million. That was in 24-25. 

Janet Mann Yes, ma’am, that was tied to summer EBT, I believe. 

Senator Stephanie Flowers And so it’s all gone, is that right? 

Janet Mann Yes, ma’am. That’s an annual expense to administer the summer EBT program. 

Senator Stephanie Flowers Thank you, Mr. Chair. 

Representative Lane Jean Thank you, Senator. That being the last question, Senator Bryant is going to make a motion for Executive Rec. Is that correct? Senator, are you going to wake up? We have a motion and a second. Any discussion? All in favor say aye. Any opposed? It is adopted. We’re going now to developmental disabilities. Ms. Walls. 

Development Disability Services

Lilah Walls Yes, sir. The next is the Division of Developmental Disability Services. And its appropriation summary is on page 138. This division administers programs and services for people who are intellectually and developmentally disabled through community-based services and programs and at the five human development centers. 

It has total authorized appropriations for fiscal year 26 of $220 million with 2,490 positions and eight appropriations. And it’s funded with general revenues, federal funds, and various program support. And the total legislative recommendation for this division is $220 million with no significant changes. 

I’ll discuss the operations appropriation briefly. It’s the second fund from the bottom, 896, Division of Developmental Disability Services. This supports the operations of the division, including management and operation of the five human development centers. And it’s founded with general revenue, federal funds and various program support. And at $199 million comprises most of the appropriation authorized for this division. And that concludes my presentation. 

Representative Lane Jean Thank you for the presentation. Any questions? I bet I know what Representative Painter’s going to do. You’re recognized. 

Representative Stetson Painter Thank you, Mr. Chair. Same thing. Other directors be prepared to. How many vacancies do you have and how long? 

Jennifer Brezee So currently we have a little over 100 budgeted positions that are vacant that we’re actively recruiting and hiring for. 

Representative Stetson Painter How many are two years or over? 

Jennifer Brezee We have two. 

Representative Stetson Painter And those are budgeted, you said? 

Jennifer Brezee They are. One is for a psychologist and one for an APRN. 

Representative Stetson Painter Thank you. Thank you, Mr. Chair. 

Misty Eubanks And then they had 23 that were unbudgeted. So they had 25 positions total within the division, only two of which were budgeted. 

Representative Lane Jean Representative Eaves, you’re recognized for a question. 

Representative Les Eaves Thank you. Just a quick question about the Human Development Centers. And I don’t have the book open, but can you tell me if you have any money that’s dedicated toward refurbishing or rebuilding any of these facilities? And if so, what is your balance in that fund, if you have that fund? 

Jennifer Brezee So currently, we have around $9 million in the fund balance that is committed to some new construction that we’re doing at the Booneville Human Development Center. 

Representative Les Eaves What about the one in Jonesboro? 

Jennifer Brezee Jonesboro, we’re currently building a new wellness center. And that’s also in the budget and that’s specifically on page 154. 

Representative Les Eaves Okay, and then what about the others like Arkadelphia and Conway? 

Jennifer Brezee So we are currently working on several projects for the other centers as well. A lot of that comes out of 1DE, which is funding in the secretary’s office. 

Representative Les Eaves Does that– I don’t know what 1DE is. Is that a separate fund balance or–? 

Jennifer Brezee I’m going to defer to Misty on what that is named exactly. 

Misty Eubanks That’s a line item. And we have that line item within the secretary’s office so that we can manage across our three divisions that have facilities. And that is appropriation. And then once there is funding, then that appropriation flows out to the divisions with the funding. And it’s committed once we have appropriate construction bids and go through the procurement process. 

Representative Les Eaves Thank you. 

Misty Eubanks Thank you. 

Representative Lane Jean Representative Wooten, you’re recognized for a question. 

Representative Jim Wooten Thank you, Mr. Chairman. How many nursing positions do you have open at Conway and Arkadelphia and Jonesboro? I just want a lump number. 

Jennifer Brezee Yeah, I’ll have to get that for you, Representative Wooten. I know from a previous question, I did find out real quickly on the Arkadelphia. We have two open RN positions. One is currently being worked and one is currently being reposted. But I can find out those others for you. 

Representative Jim Wooten Okay, and follow up, if I may. Has the compensation increase that has been approved for nurses, has that helped in recruitment? 

Jennifer Brezee Yes, it definitely has helped in the recruiting of licensed professional nurses. 

Representative Jim Wooten Thank you. Thank you, Mr. Chairman. 

Representative Lane Jean Representative Rose. 

Representative Ryan Rose You’re recognized. Thank you, Mr. Chair. Kind of piggybacking on Representative Eaves and Representative Painter’s question. There had been some discussion over the last couple of months about the work program, I think it was at the Booneville Development Center, that it had consolidated or those positions had to be moved, short-staffed, whatever it was, and that that program was either paused or closed. Can you speak to that? Do you know if those positions have been staffed, if that program’s reopened, if it’s active, if it’s being planned to be reactivated, if it is not activated? 

Jennifer Brezee It is. It’s been reopened since December, early December, the active work training program at Booneville. 

Representative Ryan Rose And so that is staffed and the plans are to keep it staffed. Should it open, you will restaff. 

Jennifer Brezee Yes sir. 

Representative Ryan Rose Okay thank you so much. 

Representative Lane Jean All right. Representative Painter, we’re back to you. 

Representative Stetson Painter Secretary Mann, do you mind getting to the committee, out of all the vacancies you have, the total amount of dollars that you’re budgeting for those vacancies’ positions? 

Misty Eubanks Yes, we can get that for the committee. Thank you so much. 

Representative Lane Jean With that being the last question, I will entertain a motion for executive rec. And a second. Any discussion? All in favor say aye. Any opposed? Thank you. We’ll go now to medical services. 

Medical Services / Medicaid

Lilah Walls Yes sir, Mr. Chair. Division of Medical Services appropriation summary is on pages 156 and 157. This division administers the Medicaid program. For fiscal year 26, it has total authorized appropriations of $10.5 billion with 92 positions and 14 appropriations. It’s funded with general revenues, federal funds, and various program support. 

Legislative recommendation for this division is for total appropriations to continue at around the same level, $10.5 billion with no significant changes. I’d like to direct the committee to appropriations that may be of interest. On line seven in their department appropriation summary, about midway down, is 896 Division of Medical Services. 

This is their operations appropriation, and it supports the administration of the Medicaid program and is funded through general revenues, federal funds, and various program support at $12.7 million. The seven appropriation line items that are below that, they’re listed as 897 and 898, are the line items combined to form the Medicaid grants appropriation which pays for the bulk of the Medicaid program. 

These items are funded with general revenues, federal funds, and a variety of other state funding sources. They’re listed separately to more transparently show funding, as some of the funding sources are unique to each item. And this concludes my presentation, Mr. Chair. 

Representative Lane Jean Members, do we have any questions? Good gracious. Senator Irvin. 

Senator Missy Irvin Just a quick one, what’s our current FMAP? 

Janet Mann Current FMAP, I believe, is 69.23. And in October 1, it will be going to 70.52. 

Senator Missy Irvin Okay, thanks.

Representative Lane Jean Senator Flowers, you got a question? Now you’re ready. 

Senator Stephanie Flowers So from the appropriation summary with the reports reflects the federal revenue compared to the general revenue. It looks like 5 to 1 or 6 to 1. Is that a match? I’m on page 156. 

Janet Mann Yes, ma’am. It is a match. It is approximately 3 to 1. The current FMAP rate is at 69.23 and we usually have a blended FMAP rate of close to 70% because admin is at a different FMAP. And so it’s basically a 3  to 1 match. 

Senator Stephanie Flowers So the ARKids B program, 897, that’s for operational expenses administering the program? 

Elizabeth Pitman No, ma’am. Our ARKidsB program is for our CHIIP program, Children’s Health Insurance. And so that is the children who, their income is a little bit too high to qualify for Medicaid, but we provide them services through a program called ARKidsB. And it is at a slightly higher match rate than Medicaid in the 80 percent. 

Senator Stephanie Flowers But the feds give what to that? Is that reflected in that 6 million? 

Elizabeth Pitman Yes, ma’am. Their match rate, the match rate for that program is around 80%. 

Senator Stephanie Flowers About 80%. And so the other she said was 3 to 1. So this is about 3 to 1, too. 

Elizabeth Pitman It’s a little bit higher. My math skills aren’t great, so it’s more like– 

Senator Stephanie Flowers How many kids are being served in the ARKidsB program? 

Janet Mann As of February 1st, our ARKidsB program served approximately 44,000 children in the state of Arkansas. 

Senator Stephanie Flowers Is that based on those who apply? Or how do we determine who’s eligible and who receives services? 

Janet Mann That is the number that are eligible to receive services. So they have applied and they have received eligibility notification. I don’t have a number of who has sought utilization of any services. 

Senator Stephanie Flowers So normally, that would be, a recipient of services would be someone presenting at a doctor’s office or a hospital and don’t have the money to pay. Is that it? 

Janet Mann No, ma’am. They would have an ArKidsB card or documentation of that they are on ARKidsB or on Medicaid. And if they go to the doctor or the pharmacy or to the hospital, those entities will bill Medicaid by their recipient number to then be paid for the services rendered. 

Senator Stephanie Flowers So they seek to qualify before going to the doctor? But if they appear at a hospital, emergency, do they sign them up there? What happens? 

Janet Mann They can sign them up there. Yes, ma’am. If they are not insured, the respective entity that they are seeking care from can call the county office or work with others to help obtain qualified applicants to receive services. 

Senator Stephanie Flowers Do schools, do public schools provide assistance for signing up for the ARKidsB program? 

Janet Mann The schools do assist with eligibility. It’s not just limited to ARKidsB. There are services delivered in the schools for Medicaid, and the schools do help administratively with eligibility. 

Senator Stephanie Flowers So are any of the operating expenses listed here in this summary transferred or distributed to public schools? 

Elizabeth Pitman Yes, ma’am. Some of our grants line is distributed to public schools. They bill us for services. They do not have a separate line. They’ll show up where those services are billed either in ARKidsB or in the Medicaid grant. But they enroll as providers and bill us for services 

Senator Stephanie Flowers Well, I’m curious to know how much of DHS budget– you’re with the medical services, right? That division now? 

Yes ma’am. 

Senator Stephanie Flowers So how much have you of the monies that, the funds that you receive are distributed out to public schools? 

Elizabeth Pitman We can get you the number of how much of the federal dollars. The schools typically pay the match rates for most of their services. So we can get the federal dollar plus what they’re paying, plus anything that we might be adding to that. 

Senator Stephanie Flowers What the feds give the school, it passes through your office? 

Elizabeth Pitman Yes, ma’am. It does pass through our office.

Senator Stephanie Flowers Okay, I’d like to see that. Thank you. Thank you, Mr. Chair. 

Representative Lane Jean Yes, ma’am. Representative Collins, you’re recognized. 

Representative Andrew Collins Thank you, Mr. Chair. So, I’m looking on page 184 at this transfer from PY residual general revenue of $294 million. Is that the set aside from when we last– okay, that is not the set-aside? All right. Well, I see you shaking your head. 

What is that then? What is that 294 million? And I guess the other question is, while you’re thinking about that, when we did do that set-aside last time, when we were doing this process of, I believe it was $200 million, did all of that money end up coming in and where does that show up here? 

Janet Mann I’ll begin, and Director Pitman will correct me. I believe last year, or in the current year that we are in, there is a $100 million set aside for Medicaid. We have not used it. We have not worked through the executive channels to come to this body to request that amount of money. So we have not touched it. 

Representative Andrew Collins And then as far as what is that 294 million transfer from PY residual general revenue? 

Janet Mann Yes, sir, that came from the TMP 0900, the trust fund account. 

Representative Andrew Collins So that was just a transfer from the trust fund account to what would then be spendable essentially?

Janet Mann Yes, sir. It was a transfer in to pay the bills. 

Representative Lane Jean Representative Cavenaugh, you’re recognized for a question. 

Representative Frances Cavenaugh Thank you. I just have a quick question. Going to nursing homes in distress, how many did we have to help with closure? And do we have a number of how many are in distress at this time? 

Elizabeth Pitman I do have that. So that is actually administered– that fund actually runs through my division, but is administered by Director Smith. So I’m going to let her answer that question. 

Martina Smith Good morning, Martina Smith. At this time, we do not have any nursing facilities in distress or working towards a closure. And we have not had any closures of our facilities since 2024. 

Representative Frances Cavenaugh Okay, thank you. 

Representative Lane Jean All right. Representative Painter, I know you’ve got a quick question. 

Representative Stetson Painter Yes, very quick. Madam Director, just how many vacancies you have. 

Elizabeth Pitman We have 12. 

Representative Stetson Painter 12? 

Elizabeth Pitman Yes, sir. 

Representative Stetson Painter How many of those are budgeted or not budgeted? 

Elizabeth Pitman Those 12 are budgeted. We have seven unbudgeted vacancies. 

Representative Stetson Painter Okay, great. Thank you. Thank You, Mr. Chair. 

Representative Lane Jean Thank you. Representative Ladyman, you got a quick one?

Representative Jack Ladyman Well, I hope. Director Pitman, I think you can answer this question. I just, on page 188, it talks about infant infirmary. And we only spent $13,000, and there’s $327,000 budgeted for that. What is that, and why aren’t we spending more money? And can that help our infant mortality rate? 

Elizabeth Pitman Yes, sir. So infant infirmaries are pediatric ICFs, institutions for those with IDD. Those services are primarily paid for via the PASSE. And so what you’re seeing there, that very small number, are the few children that were waiting on eligibility for PASSE. And they had emergency Medicaid or something like that. And so we paid for those services through fee-for-service pending that. So we should continue to see that number decline, although we don’t anticipate it ever reaching zero. 

Representative Jack Ladyman One quick follow-up, Mr. Chairman. Next page, 189, same kind of question. We didn’t spend any of that money, and there’s 2.1 million. Can you explain what that is and why we’re not spending that money? 

Janet Mann Yes, sir. This line item is actually the Child and Family Life Institute. It is used with funding Children’s Hospital. We do use it. 

Representative Lane Jean All right. Representative McAlindon, you haven’t spoken today. 

Representative Mindy McAlindon I haven’t. Thank you, Chairman. I know. Weird to see me quiet. So just a quick follow-up from Representative Painter. Those positions that are budgeted but are not filled, are you filling those with contract employees and do you have a feel for the difference in cost to do that? 

Elizabeth Pitman Filling them with contract employees? Many of them were actually advertising right now or in the process of hiring. We’re about to onboard two new employees actually. So we’re not using contract employees to fill those vacancies. 

Representative Mindy McAlindon Okay, thank you. Thank you, Chairman. 

Representative Lane Jean Senator Flowers, we’re coming back. Don’t make me– 

Senator Stephanie Flowers This is very quick. Additional information that I’d like to see when you get the figures for the monies paid to schools, where are the schools? Are we talking about– I’m trying to determine if it’s a certain part of the state where you’re seeing more need for these funds to schools and whether they support services for individuals with special needs. Is that a part of what the money is distributed for? Or just what? I’d like to know. 

Elizabeth Pitman Yes, ma’am. We can get you information on how much money is being spent in each area of the state. Any school that provides services is eligible to receive Medicaid dollars for the services they provide. They are primarily for children with special health care needs and those with disability or with medical needs. 

So they typically will have an individualized education plan that requires occupational therapy or speech therapy or some other type of service. We’re working on providing services through school nurses. So we’ll be able to provide medical services as well. 

Senator Stephanie Flowers And so you said any school. Does that include private in addition to public or public charter schools? 

Elizabeth Pitman No ma’am, just public schools. 

Senator Stephanie Flowers Okay, thank you. Thank you, Mr. Chair. 

Representative Lane Jean Thank you. Representative Wooten, we’re back to you. 

Representative Jim Wooten Thank you, Mr. Chairman. I’m on page 156. And I’m just curious on the 648 Medicaid expenses, it’s got 4 million actual, 4.6 million actual. It’s got a budgeted 41.2 million. And then, authorized is 140 million. And in the request, it stays at 140 million, and we only actually spent 78. Why is that? 

Janet Mann Yes, sir. That fund, in combination with several funds listed below, is how we pay for all of our claims throughout the year. And so that one is level. And sometimes during the year we will bring y’all requests to move line items around depending on the expenditures. So we’ve left that one flat for next year. 

Representative Jim Wooten So we budget $41 million. And then we’re authorized 140 million. I may ask the same question, but why the difference between 70 million, 41 million budgeted and 140 million recommendation by the legislative and executive branch and the agency? Why is that? 

Janet Mann Yes, sir. So the two lines above it, Medicaid expansion, medical services, prescription drugs, and then medical services, those three lines make up the appropriation for our tobacco settlement funds. So this is appropriation only. 

Representative Jim Wooten Then let’s look at line 1. Actual expenditure was 14,000, budgeted 4 million authorized 4 million. Why do we do that? 

Janet Mann Yes, sir. So this is our appropriation for our nursing homes if they close. This gives us the flexibility. As Director Smith said a few minutes ago, we’ve not had a nursing home close in over a year. But if one does become in jeopardy to be closed, we can use this line item and this appropriation to help us with the receivership to make sure the patients are taken care of while it’s undergoing change. 

Representative Jim Wooten Are we going to have 4 million needed? Do we need that? I mean, I can’t get my arms around why we’re budgeting 4 million and we’re spending 14,000. 

Janet Mann Yes, sir. We have asked for that appropriation to be $4 million to give us the flexibility if a nursing home or multiple nursing homes close. We also have a small window, as Miss Walls mentioned to me, that we can use some of this money for training. We have not gotten clearance from CMS to do that. But if we do get that training, we will be coming and using some of this appropriation to fund that. 

Representative Jim Wooten In other words, that’s anticipation in the event that that occurs. 

Janet Mann Yes, sir. 

Representative Jim Wooten All right, thank you. Thank you, Mr. Chairman. Thank you. 

Representative Lane Jean Thank you. All right. Need a motion for executive rec on medical services. Have a motion and a second. Any discussion? All in favor say aye. Any opposed? Stands approved. We will go to quality assurance. 

Provider Services and QA

Lilah Walls Thank you, Mr. Chair. This is the, on page 194 is the appropriation summary for the Division of Provider Services and Quality Assurance. This division provides administrative support and oversight of providers enrolled in the Medicaid, Medicaid waiver and ARKids programs and licenses, surveys and regulates child welfare agencies on behalf of the Division of Children and Family Services. 

In fiscal year 26, it has a single authorized appropriation. I know there are three line items, but they only have one appropriation. And it’s for $19.4 million. And this is the operations appropriation for this division. It has 186 positions. It’s funded with general revenue, federal funds, and various program support. And the legislative recommendation for this division is for $19.4 million with no changes. 

Now, the appropriations that are listed on lines one and three for this Division are the two appropriations that we had that transferred to the Division of Aging and Adult and Behavioral Health Services over those many years ago– moments ago anyway. As part of a governor’s letter during regular session 2025, they appear here to show the expenditures in those appropriations prior to their shift to the Division of Aging, Adult and Behavioral Health Services. And this concludes my presentation for this division. 

Representative Lane Jean Any questions? Okay, Representative Painter, let’s have it. 

Representative Stetson Painter Alright, same thing, Director. How many vacancies you got? 

Martina Smith We have 51 vacancies, 15 of which are unbudgeted. 

Representative Stetson Painter How many over two years? 

Martina Smith Four over two years, one of which is unbudgeted. 

Representative Lane Jean Thank you. Seeing no other questions, we need a motion executive rec. We have a motion and a second. Any discussion? All in favor say aye. Any opposed? Stands approved. And our last one is the Youth Services. Ms. Walls. 

Youth Services

Lilah Walls Thank you, Mr. Chair. The final division is the Division of Youth Services. Their appropriation summary is on page 201. This division was created to handle the problems of youth involved with the juvenile justice system through a variety of community-based and residential options for case management, diversion, and rehabilitation of at-risk youth. 

In FY26, it has total authorized appropriations of $83.2 million with 121 positions and five appropriations funded with general revenue, federal funds, and various program support. And the legislative recommendation for this division for fiscal year 27 is for total appropriations of 83.2 million with no significant changes. I’ll direct the committee to appropriations that may be of interest. 

On line four is the operations appropriations. The second to last, I’m sorry, is the residential services appropriation. This $34.6 million appropriation is funded primarily by general revenues and is for the cost of running juvenile treatment centers. 

And the final appropriation in the summary is the operations appropriation, which supports the operation of this division. It’s $14.4 million and is funded through general revenues, federal funds, and various programs support. And this concludes my presentation for this division and the department. 

Representative Lane Jean All right, members, any questions? All right, Representative Flowers, you are– excuse me. Senator Flowers, you are recognized for a question. 

Senator Stephanie Flowers The community-based sanctions, what is that? If DYS fails to abide by a court order, what is that? It’s on page 201. 

Janet Mann Those are from juveniles that are not compliant with court orders or conditions of supervision. Those are sanctions that the courts impose, and then they are distributed to us. 

Senator Stephanie Flowers So they’re fines or penalties? Are those funds shared with county government? Does the Administrative Office of the Court get any? 

Janet Mann We’ll need to take that one back. I don’t know if the courts get– I don’t where they are funded. 

Senator Stephanie Flowers Well, I’d appreciate your research on that. 

Janet Mann Yes, ma’am. 

Senator Stephanie Flowers Exactly what is community-based sanctions? Because community-based, you’re not talking about an individual juvenile. You’re talking about community. I mean, I don’t understand the whole phrase there, community-based sanctions. Is that court sanctions? Is it DYS sometimes goes into court and they fail to comply with the court’s order? So what is this? 

Misty Eubanks This is part of our community-based diversion program. And we work with a number of vendors out in the community and have contracts with them to avert custodial placements with our juvenile treatment centers. But we’ll get you more information on the revenues here. 

Senator Stephanie Flowers Yeah, and the whole idea of community-based sanctions. There should be some description or definition of what that is. I don’t understand what that phrase is. 

Misty Eubanks This is part of our continuum of options for judges in local communities prior to committing juveniles to our juvenile treatment center. So this is actually diversion programs that juvenile probation officers and juvenile judges ask families to participate in as part of their court involvement. So these are actually prior to them coming into placement at a secured facility. So these can be anything from probation, these can other interventions such as after school and things, monitoring, mentoring, things like that in the community that are provided by contract providers in communities. 

Senator Stephanie Flowers Well, under the funding sources, would any of the sources be from individuals that appear in juvenile court? 

Misty Eubanks No, not that I’m aware of. It’s general revenue. It’s state general revenue, 100 percent. 

Senator Stephanie Flowers So it’s not a kid or family paying fees or penalties for contempt? 

Misty Eubanks Not here, no. Not in our budget. 

Senator Stephanie Flowers But would you agree it’s somewhere? 

Misty Eubanks That’s the part I would have to get with Administrative Office of the Courts about. But I’d be happy to make that contact and get you that information. 

Senator Stephanie Flowers I’d like to know if any of your budget comes from fines, fees, costs that are received in juvenile court or ordered in juvenile courts. 

Misty Eubanks Yes, ma’am. None of that is in our budget. 

Representative Lane Jean Representative Wooten, you’re recognized. 

Representative Jim Wooten Thank you, Mr. Chairman. I’m on page 201 still. You have 121 positions authorized by 120. The agencies are requesting 122. How many of those 121 are vacant? 

Misty Eubanks Yes, we have a total of 23 unfilled positions. 

Representative Jim Wooten So roughly 10 percent, a little over 20 percent. 

Misty Eubanks Correct. 

Representative Jim Wooten  Okay. How many of those are over two years? 

Misty Eubanks We had eight positions that were over two years old. And of those six, were budgeted. 

Representative Jim Wooten They were all budgeted?

Misty Eubanks Six were, of the eight. 

Representative Jim Wooten Down under funding sources under performance fund, we have zero amount. But we budget actual, but we have budgeted $625,000, but we’re not requesting any. Is that a change? Well, it’s a change, but– 

Misty Eubanks That’s correct. We don’t budget performance fund in the future. We just utilize what we need in the current budget year based on filled positions and things like pay plan and things that are unanticipated. So we ask for performance funding in the current budget. 

Representative Jim Wooten Follow up. Where does that funding come from? 

Misty Eubanks From the performance fund held by and disbursed by DFA. 

Representative Jim Wooten Okay. All right, thank you.

Representative Lane Jean Representative Painter, you got a quick one? 

Representative Stetson Painter Yes. And I’m sorry, I think Representative Wooten stole my question, but– 

Representative Lane Jean You don’t have to ask it again. 

Representative Stetson Painter No, you got me there. No, out of those vacancies, how many of those are two years or older? 

Misty Eubanks There were eight of those, six of which were budgeted. 

Representative Stetson Painter Okay, great. Thank you. 

Representative Lane Jean All right. Supposedly the last question is Representative Gonzales Worthen. You’re recognized. 

Representative Diana Gonzales Worthen Yes, thank you, Chairman. And thank you for answering my question. I’m not exactly sure if this is the right setting for the question, but I’m going to ask it because it’s related. It may be an education question. It might be a question for you. So I’m just going to ask you. 

So when you have students who are in juvenile detention centers or they’re in inpatient mental behavioral settings or other settings other than treatment centers, et cetera, other than they’re in school. They’re not in school. And you have students who are not yet reading on grade level or they’re English learners or they are in special education. They’re receiving services. How are those students served in settings outside of the school district? 

Misty Eubanks Thank you for the question. I can only speak to Division of Youth Services and not the other settings. However, Division of Youth Services, we are considered a school district. And we do participate in planning educationally for each juvenile that we have on our campuses. And those are supported through different mechanisms, some of whom are on traditional tracks. 

And they do earn credits that transfer back to their high schools of origin when they go home. We do have some youth who are on GED track, often pursuant to the judge’s court order. And that may be a condition of their release from DYS or return to home. And lately we have had a big focus in education on career exploration, as well as actual job training, certification. 

We’re super proud that several of our juveniles who have completed their formal education have gone on to get things like their CDL and truck driving as well as some welding certifications and things like that. We do support special education. We have some special education teachers and things to support our juveniles who come to us behind on reading level. And we do know statistically that many of our juveniles served have special education needs and often are behind in their education for various reasons. 

Representative Lane Jean Representative Ennett, you have a question? Hold on, wait a minute. Just push back on. 

Representative Denise Ennett Thank you, Mr. Chairman. I have a question to piggyback off of Representative Gonzales Worthen. How many of these students in DYS are on IEP? 

Misty Eubanks I don’t have that number with me today. But we definitely have that data, as well as some other data I’d be happy to share with you. 

Representative Denise Ennett Okay, thank you. 

Representative Lane Jean You got another question? All right, Representative Gonzales, you’re recognized. 

Representative Diana Gonzales Worthen Yes, piggyback off of Representative Ennet’s, I would also like to know the number of English language learners that you’re serving. 

Misty Eubanks Absolutely. Be happy to provide that. Thank you. 

Representative Lane Jean Members, seeing no more questions, we’ll take a motion for executive rec. Have a motion and a second. Any discussion? All in favor say aye. Any opposed? Stand approved. Representative Garner, you got a personal point of privilege. You want to do it right quick? You’re recognized. 

Representative Denise Garner Thank you, Mr. Chair. Very quickly, I just want to thank DHS and every agency in the room presenting today for– I’m going to thank you publicly for answering my questions on the First Amendment issues. 

One of the questions I did not ask very clearly, obviously, so I am sending out another letter to the agencies that if you don’t mind answering those for me and getting them back, then we’ll have a little more clarity in some of the information that we need. 

I just wanted to thank you all and I’ll keep you posted as we look at that information and we’ll gather back after that. But I will send another letter with the information that we need and we will go from there. But thank you very much. I appreciate you all. 

Representative Lane Jean All right, members, it’s been a long morning. Just to let you know, the chairs have taken down the calendar. There will be no calendar tomorrow. We will finish this afternoon. And before I bring it, we’re not going to bring education up with 10 minutes. 

So we’re going to come back at 12:45 and we’re going to finish the day no matter how long it takes. We still got education, public safety, and the health department. So we’ll break till 12:45, which we’ll start and pick back up. Thank you.

[Recess]

Representative Lane Jean All right, members, if you’ll get to your seats, we’re fixing to start in one minute. All right, members, we’re back from recess. Ms. Walden, you got the Department of Education Public School Fund. Please proceed. 

Education

Public School Fund

Katie Walden Thank you, Mr. Chair. Good afternoon, members. Katie Walden, Bureau of Legislative Research, Fiscal Division. As Mr. Chair stated, I’m going to be reviewing the public school fund appropriations with you today. 

Those include the Division of Elementary and Secondary Education appropriations, the State Library, State Aid, as well as the Division of Career and Technical Education. So while these appropriations begin on page 212 of your manual, if you’ll look at item C in your packet, staff has prepared a summary of each of these appropriations for you. 

Representative Lane Jean Members, you should have this in your packet. It has C on it, kind of a cheat sheet, if you will. 

Katie Walden Thank you, Mr. Chair. And I’ll just kind of go over with you how this is organized. So we took all of the appropriation lines in the public school fund budget and we organized them in alphabetical order. And you’ll see, if you look on your left, there is the page number where you can find the detail describing each appropriation, the line item, and then all the rest of the information that’s already in the budget manuals associated with that line. 

As I said, I’m going to begin with the Division of Elementary and Secondary Education public school funds. This is all state aid distributed to local districts, charter districts, education service cooperatives. This is where all the adequacy funding is. There are 70 appropriation lines in this appropriation section. 

And there are also 49 positions appropriated, and that includes 45 positions in the APSCN and four in the Office of Education Renewal Zones. On page three of the schedule, you’ll see that the total for the public school fund, the total request and the total recommendation is for $3.5 billion for FY27. 

There are no change level requests associated with this amount. And so that’s really it on the public school fund. There are no change levels. It was 3.5 billion last year. It will be 3.5 billion requested in 27. I’m happy to answer any questions. 

Representative Lane Jean If the department is ready to come forward, we would love to see you today because we have questions. Have you got anything you want to say on an opening statement or you’re ready to go into questions?

Jacob Oliva I defer to the chair. If you want to go on his questions, I’m okay with that. 

Representative Lane Jean Our first question will be Speaker Evans. You’re recognized, sir. 

Representative Brian Evans Thank you, Mr. Chair. Secretary, good afternoon. Looking at the sheet C with the breakdown of the various appropriations, there’s $190 million that is set in here for minimum teacher salary and raises. If I recall, that originated back with the LEARNS Act. I believe in September of 2022, there was a, I’m going to use the word census, that was done on all the 400-plus– or 200-something school districts across the state. 

And what we were doing is any teacher that was not at 50,000, we provided funding to them to get them to 50,000. And as long as they met some of the criteria that was set aside in LEARNS, they would continue to get that funding. Am I correct with that? 

Jacob Oliva That’s correct.

Representative Brian Evans Yeah, and so since that time, I just have to think that there has been movement. And so since September of 22, have we gone back, whether through e-school and e-finance or however we established that initial baseline, have we gone back and recalculated that to make sure that the schools who have taken on teachers who that teacher was getting that funding at school A, but now they’re at school B, and that school is getting that funding, have we taken another snapshot in time? 

Jacob Oliva Yes, so to date we have not taken a new snapshot in time. It would require a legislative change for us to do that. 

Representative Brian Evans That would require legislation to ask you to go back and take another snapshot? 

Speaker 5 Yeah. So the way that the statute is currently written, it established that first year, as you put it, the census or the snapshot in time at which the salary funding is based. And so if we were to base the funding on a different time period, that would need to be reflected in the statute. 

Representative Brian Evans But is it safe to assume that there have probably been teachers that have moved to different districts because of recruiting, better benefits, better options, less travel, possibly move to charter schools that were not included, and then we’re actually still potentially sending funds to a school that no longer has those teachers? 

Jacob Oliva Absolutely. And I think, even as enrollment changes, we’ve got some districts that are growing in students. So they’re adding more teachers. And we have maybe some districts that are declining enrollment that may not have as many teachers. So that’s definitely happening. 

Representative Brian Evans Okay, thank you very much. Thank you, Mr. Chair. 

Representative Lane Jean Thank you, sir. All right, we’re going to, as practiced yesterday and this morning, we are going to members of the committee first, then the non-members. Senator Flowers, you’re recognized. 

Senator Stephanie Flowers Thank you, Mr. Chair. I guess this might be answered by Ms. Walden. When you presented, I thought I heard you say this. Exhibit C includes adequacy. 

Katie Walden Yes, ma’am. The appropriations for all the adequacy recommended items are included in this schedule. So that includes state foundation aid, all the categoricals, as well as the supplementals that are listed when you make your adequacy recommendations. And they should be named corresponding with what is listed in the matrix. 

Senator Stephanie Flowers Okay, so we then could look at this C and expect that the recommendations at the minimum should be part of the adequacy that we established? 

Katie Walden This is the appropriation recommendation for 27.

Senator Stephanie Flowers How do we use this to determine adequacy? Are we going to get another report or something for adequacy? 

Representative Lane Jean That’s going to be in the fall of the year for the next biennium. This is the second year of this biennium. So we’re working off the adequacy that was done, I guess, a year and a half ago. 

Senator Stephanie Flowers Okay, so this is like supplementing or just–?

Representative Lane Jean This is the appropriation. This is not the recommendation. This is the appropriation. 

Senator Stephanie Flowers Okay, well it says appropriation request and recommendation, so I was trying to figure out. So we won’t have to just determine adequacy funding during the fiscal this year. Is that right, Mr. Chair? 

Representative Lane Jean Mr. Rogers, you want to weigh in on this? 

Greg Rogers Greg Rogers, Department of Education. Correct. The adequacy recommendations that were done in, I think it was 24 that set the foundation funding for 26 and 27, as well as the categoricals, that appropriation is contained within this budget. So we do have adequacy in this budget.

Senator Stephanie Flowers And so we’re just appropriating it for the next fiscal? 

Greg Rogers Correct. Yes, ma’am. 

Senator Stephanie Flowers Okay. And I guess my other question right now, Mr. Oliva, Secretary Oliva, you might be able to answer concerning the educational renewal zones. And in the description it says it’s not limited to, but the purpose is for improving public school performance, particularly the state’s most academically distressed public schools. 

Have those schools all been identified? And how many do we have? And are all of them participating in a collaborative agreement or interlocal agreement as is described here between a public school education service, co-op, or institution of higher learning?

Jacob Oliva The short answer is yes. When we say, which are the schools that we’ve deemed to be at risk, we look at all the D and F schools. They all have an improvement plan that’s reviewed by our agency. That’s done in development with the educational cooperative that they’re in with that zone. 

The educational resource zones is also a partnership that runs through a lot of our universities, as well as making sure that they’re helping provide additional support and training in those targeted areas as well. So I think it’s a, just to describe it briefly, it’s like a holistic approach with everybody making sure we’re getting those schools what they need. 

Senator Stephanie Flowers How many such zones do we have in the state? In schools participating. I guess the question is how many schools are participating or school districts?

Jacob Oliva  I might have to get you the exact number. I want to say there’s about six educational research zones that cover the state. But we can get you that information for sure. 

Senator Stephanie Flowers I’d like to have it. And just a reminder that I had asked you, I don’t think it was in a meeting, about where these students are or schools are that have these or are likely to retain third graders that are in these academically distressed public schools. I’m still waiting on that. Hopefully, you can get that to me.

I know you got a lot to do, but I’d like to know how these third graders are doing in these distressed school districts, particularly those that have been under state control within the last five to ten years. 

Jacob Oliva Happy to get that for you. 

Senator Stephanie Flowers Thank you. Thank you, Mr. Chair. 

Representative Lane Jean Thank you, Senator. Next member is Senator Irvin. You’re recognized. 

Senator Missy Irvin Thank you. Just a quick, if you could just give me an update, I think, on the Leg Audit finding number one on the potential for the duplicate enrollment. There was a completion date of August 1, 2025. Have we gotten that? Did we meet that? And are we doing good there on the duplicate enrollment? 

Greg Rogers Yes, since that we’ve gone and increased our controls. One of the things for home school now is we’ve added a school within APSCN. So when a student elects to enroll as a home school student, it’s going to be an APSCN. And if that student also applies to another school, a traditional school or charter school, it’s going to kick out. 

So that’s one of the different layers that we’re doing it on there. So we’re also going through different controls with class vault to make sure that if there are duplicate enrollments, whether it’s in another private school or home school or traditional, we are going to try to get better at finding those. 

Senator Missy Irvin And then, if we’re doing the EFA and they were enrolled in a public school, can we call that money back or not from the school since they weren’t really educating them? 

Speaker 5 Yeah. So of all of the instances of potential dual enrollment that were identified, to my knowledge, we did not identify any that were fraudulent or falsely dual enrolled. There are many instances in which the student may have left public school and the public school had just not dropped them on the roll soon enough or the student needed to still be enrolled in the public because they were receiving special ed services or other services that they are legally entitled to receive. And so in order to get funded for those students, even for the portion of time that they’re in the public school, they had to remain enrolled. 

Senator Missy Irvin Gotcha. Okay. No, that makes sense. Okay, and then thank you for that. And then just a quick question on the sexual risk avoidance program. We have the recommendation is 4 million but we don’t have an agency request. But we do have an exec and legislative recommendation for that. So I’m just curious because there was no actual expense from 2024 to 2025. Can you just give me an update about that? 

Greg Rogers So yeah, so since this was the biennial budget request, it doesn’t reflect an agency’s request in there because that was picked up after the biennial budget process had gone through legislation that was passed. So that’s why you see it reflected in the executive recommendation. So it’s in there, it just was not part of the request two years ago. 

Senator Missy Irvin I got you. So this is new? 

Greg Rogers Yes. 

Senator Missy Irvin Okay. And so do we have plans for this new program or do we have any–? 

Greg Rogers That I don’t know. I’d have to check. I have to get what we have going on with that. 

Senator Missy Irvin Yeah, if you don’t mind, I’m just interested in that. Thank you. Appreciate it. 

Representative Lane Jean Representative Wooten, you’re recognized for a question. 

Representative Jim Wooten Thank you, Mr. Chairman. Thank you all for being here today. And my question has to do with the salary structure relative to a tenured teacher that has 20 odd years in service. And her salary, it was $48,000. Now it’s $50,000 because she’s got a $2,000 raise. 

She’s mentoring a teacher that is making $50,000 a year, which is fine. I mean, there’s not a problem with that. The entrance pay was low, but also the other salaries for our teachers are very low. And I know that the district itself has some control over that, but am I correct in assuming that the funding for the pay raise that the initial teachers, our beginning teachers received, we’re paying that. Is that correct? 

Jacob Oliva I just want to make a clarifying question, if I may. When you say the initial salaries that the teacher received, are you talking about the difference between what the LEARNS adjustment was from the 36,000 to the 50,000? 

Representative Jim Wooten Right. 

Jacob Oliva Okay. Yeah, that was part of the LEARNS Act to cover the difference for that. 

Representative Jim Wooten What are we doing to try to make equalization in the salaries for teachers that have– I can cite you one instance, Mr. Secretary, where I have a teacher that is mentoring a teacher, a young, an initial entrance to the school classroom. She’s mentoring her and she’s making the same amount of money with 28 years as the one fresh out of college. And I’m not being critical. I think we needed to do what we did there. But what I’m asking, I didn’t see anything in your budgets to try to equalize to help the tenured teacher that has a long time.

Jacob Oliva So, the point you bring up, I think we’ve discussed before. And what the LEARNS bill did with the teacher salary allocation is ensure that everybody got at least, I think it was a $2,000 raise from their previous year, and then they cover the difference. 

But a lot of school districts develop salary schedules on their own. So maybe we need to follow up with the school district, because some school districts now have the flexibility and freedom to be a little bit more creative. Some districts are saying, we can’t find chemistry teachers and physics teachers so we want to pay them a little bit different than maybe a math teacher in eighth grade. 

Some school districts look at years of service. They value that. A lot of districts have incentives in place. If you do mentor another teacher, you can get additional dollars. But one of the ways I think that the more seasoned teachers are getting additional compensations through the teacher merit salary allocation. 

In fact, last year, because I pulled the numbers, we had almost 4,300 teachers receive teacher merit pay. On average, that payment, it was around $3,300. So typically, we’re seeing our more veteran teachers that are mentoring new teachers, teaching in hard to staff areas, geographically located challenging areas to staff, have high student growth scores, are getting those additional layers of compensation as well. 

So that’s not going to be reflected in their base salary because that’s additional compensation. 

Representative Jim Wooten Well, my question is, and I appreciate your answer on that, but my question is, have y’all considered or have you looked at the state picking up some additional pay in order that some of these salaries can be raised for the teachers that have 20 years or more in the classroom. And they’re good teachers. I didn’t mean to interrupt. 

Jacob Oliva No, no, I’m sorry. 

Representative Jim Wooten But the merit system is good. I mean, it recognizes those who went above and beyond is what I would consider. Okay, but then you have some that meet the standards that are good teachers, solid teachers. And they need, they just need more pay. And I don’t see anything in here. And what I’m asking, have you all thought about that, addressing that through more state money going to the district? 

Jacob Oliva Me, personally, I’m always going to advocate for more dollars for teachers. If we know what the number one impact for investment for getting students to perform better and learn better, it’s those teachers standing in front of the classroom. 

And there’s a lot of research that says you can’t pay a good teacher enough money because they’re worth every single cent. But what we have done and what this budget allows is the districts to come up with a compensation plan that works best for the district. I don’t think the state should prescribe to every single district how they should compensate teachers.

 We’re not in every district. We want to give that decision making to the folks that are there, to the administrators, the principals, the school boards. And the increase in foundation funding gives them some flexible dollars that, if they want to direct it towards teacher salaries, they can. 

Other areas that I definitely hear from school districts is they want salary schedules and the funding flexibility, say, for bus drivers or maintenance folks. Across the board, we want to make sure we invest in recruiting, retaining, and recognizing the talent in our schools because they’re the ones that are making it happen each and every single day. 

Representative Jim Wooten Well, I appreciate that. But let me end my comments with this remark. Something’s wrong when we’re paying the salaries, we’re paying to teachers, and we can pay $6 to $8, $9 million for a football coach. Or we can play one $17 million to leave. I mean, it’s just not fair. It’s not right. I know life’s not fair. So thank you all. Thank you. 

Representative Lane Jean Senator Dismang.

Senator Jonathan Dismang Thank you, Mr. Chairman. And this is going to– y’all probably weren’t here earlier. But we had a little bit of discussion about how we’re funding senior citizen centers and other things. And I guess what I want to make sure that we have, I mean, to Representative Wooten’s point, I mean we are spending– when I say we, it’s in the collective we– are spending money on things that aren’t directly tied to education. 

It may be very beneficial for the district to have a football team or a basketball team or whatever it is they may believe in. And there’s different areas that they want to focus on and build whatever it is they want to build. But we want to make sure that they’re prioritizing their teachers and teacher pay first. Outside the box, the difference that needed to be made up for the 50,000, the state paid for. The $2,000 bonus, the state paid for. The merit pay, the State paid for. 

Those are all things that are outside of their per student allocation. And I guess I want to make sure that districts– and I’m not saying they did, because I don’t know– didn’t use those supplemental dollars that we gave them and not let that coincide with increasing teacher pay elsewhere. 

Is there a way, and I’ve always kind of been curious about that, because every time we do a superintendent buyout and we have to pay that superintendent for two or three years that they don’t actually work, that’s less money that’s available for the district to pay for teachers, right? 

And we can go through a laundry list of payments that are being made for things that are providing zero services or education to children because someone entered into a contractual agreement that was to the detriment of the school district. It’s just the reality. Is there a way for us to do a better job tracking how those dollars are being spent on the district level so that the citizens back home can help us make sure that things are being prioritized that should be prioritized? 

Jacob Oliva So I think that’s a great question. And ultimately the answer is yes, because we need to have transparency. In fact, we built a transparency dashboard that anybody can log in and see where the expenses are going at the school district and school level. We can make sure the members are aware of it. It has an interesting acronym for a name. Everything has an acronym in education. I can’t remember the name of it directly. 

But this is why I feel strongly in accountability. And this is why, I think, even the legislative delegation was supportive in issuing school district grades. Typically, when we find an F-rated school district, that’s not one building in a school that’s failing. When we find failing districts, we have failing systems.

 And when you find failing systems, students aren’t learning. And typically, they’re not being good stewards of those dollars. And we want to take a greater control and accountability, especially at the state board level. They’ve made their intentions clear that when we start looking at D and F districts, what they’re doing with their money needs to be a big part of that conversation. 

Because typically what we find is they’re not putting the money in the resources where they need to be to protect and improve student learning. So I think the overarching question is, can we do more? Absolutely, right? Do I believe in local control, local decision-making? A thousand percent. But if you’re failing kids in communities, then we need to be able to call you to the table and hold you accountable. 

Senator Jonathan Dismang One thing I’d like to ask then is maybe for education chairs or whoever. I’m not aware of the program, how it works, what that platform looks like for us to go into. I’m going to bet our school members aren’t aware of the program, how it works or how to kind of dig into it. 

It might be really beneficial for starting with the members of education, especially as we’re going down the adequacy path, to have a tutorial on what to look for. And then ultimately, I think each member would be advantageous for members to be able to look and see what was happening. 

Because we often just read what’s in the paper after it’s happened to see what’s going on inside of a district. So anyway, that would be my request is maybe we can get with the chairs of those respective committees so that we’re all better informed about what’s happening. 

Jacob Oliva Yeah, maybe as we go through this process, that could be an agenda item. We’d be happy to bring the folks in and start walking through and navigate that because I think that’d be beneficial. 

Senator Jonathan Dismang We are hyper focused on criticizing the state on how we spend education dollars. And it feels like there is almost zero focus on how the districts are actually spending the dollars after we send it to them. And that may be largely because everything’s being done correctly. But I don’t think any of us have the tools or knowledge to know or wonder where the tools even existed to know how to dig in and find out. So I appreciate that. 

Greg Rogers Senator, I would just add that when you said the Education Committee going through the adequacy process, one of the things that we’ve been working with BLR is reviewing the resource allocations that I believe will be presented to the Education Committee next week. Where they go through, I think there’s two parts where they’re breaking down and actually going through the revenues that districts have received in the allocation and resources and how they spent those over the last two years. So that is something that will be incorporated in the adequacy study. 

Representative Lane Jean All right. Representative Cavenaugh, you’re recognized for a question. 

Representative Frances Cavenaugh Thank you, Mr. Chairman. Thank y’all. My question’s going to be around declining enrollment and growth enrollment. So on our declining enrollment, do you know how many school districts are approximately or currently being given that funding? 

Greg Rogers We just went through that in Peer last month. I want to say it was around 120 that had declining enrollment last month that we came and had to get additional appropriation for them. 

Representative Frances Cavenaugh And is there any one particular part of the state that has more of that than another? 

Greg Rogers Trying to go through the list, I don’t know. I’d have to look at it. I don’t think so. I think you see movement around the state and it just kind of varies. Definitely, I think in Southeast Arkansas, you’ve seen a decline there. But I’d had to look at the report. 

Representative Frances Cavenaugh Yeah, if you don’t mind, if you would get that. So I’d kind of be interested in knowing where that decline is happening, like is it relating to population shift or is it another factor that’s affecting that. So I’d kind of like to know that. The same thing with the growth. How much, how many are getting growth funding. 

Greg Rogers I didn’t bring how many. I’ll send that to you as well. 

Representative Frances Cavenaugh Okay, and also kind of wanting to know the same information. I’m trying to see, is it economic factors that’s growing it, or do we have another problem with those declining enrollments. So thank you. 

Representative Lane Jean Representative Gramlich, I’m glad to see you came back to the right side. You were kicked back over there on the Senate side this morning. I was a little worried about you. You’re recognized.

Representative Zack Gramlich Well, you gotta dip your toes in to know it’s hot, so I just did it as a learning exercise. Couple questions. I saw one was, you haven’t had this before, but it was the school funding contingency for $25 million. It seemed pretty significant. I would assume you’re assuming there’s going to be some shortfalls. Do you have any ideas what that might be used for? 

Greg Rogers The school funding contingency 25 million is just unfunded appropriation to address those shortfalls or something that we see during the year that we can do– special language allows us to do two reallocation of resources a year. And if we needed that additional appropriation, that’s where we would bring the letter to the Peer Committee to be reviewed to move appropriation when we have those short falls. 

Representative Zack Gramlich And then the next one was the consolidation incentive. I see we didn’t have them for 24-25. Now it’s for nearly $6 million. Are there districts we have identified that are going to be consolidating? 

Greg Rogers Right, that is for the voluntary consolidation, where we work with them to make sure that we pay up to at least 350 ADM of the foundation funding to help with the consolidation of those, depending on which one is the smaller district. It’s usually a smaller district moving into a bigger district. So that consolidation incentive bonus is there when they are consolidating two school districts together. 

Representative Zack Gramlich So, but are there districts that are going to consolidate and that’s why we have this money? 

Greg Rogers I don’t know that. We have it there in case they do. We wouldn’t know until they started that consolidation process. 

Representative Zack Gramlich So that conversation hasn’t happened. We don’t know if any districts are consolidating. Okay. Thank you. 

Representative Lane Jean Representative Collins, you’re recognized for a question. 

Representative Andrew Collins Thank you, Mr. Chair. So I’m looking now at page 241, which is funding sources. I know that you’re going through the spending, but it’s the public school fund funding. There was a $3 million in fiscal 25 federal revenue, and then it’s budgeted zero for fiscal 26 and not expected in 27. What was that? Why did it go away? Will it ever come back? 

Greg Rogers That was a journal entry that we did the last year to use some of our ESSER funds when we were doing the free breakfast. So it was just a one time transfer that we were doing to pay for the free breakfast. 

Representative Andrew Collins And then the other question I have is that same area there. It’s something called unfunded appropriation and it’s budgeted for 25 million in fiscal 27. There’s a lot of unfunded appropriations. Why does this get its own line item? 

Greg Rogers That’s the 25 million that Representative Gramlich was just asking about. 

Representative Andrew Collins That’s the same thing there? Okay. I see. Well, all right. And just being called unfunded appropriation is that the best way to do that? 

Greg Rogers That way it would properly reflect our fund balance and our other sources of revenue. Because if we had unfunded appropriation up here, when it falls down at the bottom in there, it would suck up the revenue, so to speak, to show that we were actually budgeting more than we intended to budget. So they show that $25 million unfunded budget line on there so all the revenue is accurately reflected. 

Representative Andrew Collins Okay, thank you. 

Representative Lane Jean All right. Senator Irvin, you’re recognized for a question. 

Senator Missy Irvin Thank you. Is there any kind of mechanism to where superintendents and districts give us a report, they submit a report to us about the way they’re spending money? Or is it just us having access to them, to their information and we generate that? 

Speaker 5 So I’ll say that they do have to post some of that information on their website.

Senator Missy Irvin But there’s no mandate that they come and present it to this legislative body. I mean, I’m just following up on this conversation that Senator Dismang had that Representative Wooten started. 

But during the, was it ESSER, the federal funding, we– I think, Senator Disming, I think you put into place for some pretty high level accountability for them to come before our committees and discuss those funds and how those funds were going to be requested and then utilized. And I would 100% agree. And I want to go back to that conversation because I really think that there’s got to be some back and forth communication with this legislative body. 

Because I believe in local control and their ability to have flexibility and spending, but I can tell you as a parent going to a school board meeting where the teacher committee recommended to the school board a certain amount of raises for the teachers and it was denied. If you’re a parent and if you go to the school board meeting, then you know that happened. 

But if you don’t, there’s no accountability for that. And so what I’m seeing is where districts are choosing to spend a ton in administration as far as all these different levels of assistants and assistants and assistants to the assistants and not paying teachers. That is problematic and troubling to me because we see high salary, I mean huge, exorbitant salaries at the levels of superintendent and of assistant superintendents and principals and assistant principals, where that’s probably not necessary to operate in some of these sizes of these schools in my opinion. 

And they’re not spending that money and they’re not choosing to spend that money to increase teacher salaries. Instead, it’s going to one or two or five people versus to the teachers. But that’s a decision that is being made at the local level with the school district. So those teachers could have gotten a $2,000 raise, but instead it went to upping the salary from 175,000 to now 187,000. So is there any level of accountability to this body about how they’re spending those dollars? There is none. 

Greg Rogers As far as reports that they have to, I can’t think of one right now. But I think, like, there are reports that we are required to turn in, which are the ASR, which does go through and show how all the expenditures are done on there. 

Since all districts are required to use e-finance, there are reports that we can pull and do that to show how the allocation of funds is being used, as I mentioned earlier, with the resource allocation that’s going to be presented to the committee. Those are the only two, three things that I can think of right now. 

Senator Missy Irvin But the impetus is on y’all pulling the information? 

Greg Rogers Correct. 

Senator Missy Irvin Not on them actually having to prepare it and submitting it. 

Greg Rogers Yes. 

Senator Missy Irvin Okay. And I think that needs to be addressed. To be frank with you, I think that we should address that. I think we should demand that. I think though this body should say, how are you spending those monies? And you prepare it and you present it to us because then you’re accountable. And even just them preparing it themselves and submitting to us provides a level of, oh, they now know, I’m going to have to present this. To me, I feel like that’s appropriate. And I think it’s worth exploring. Thanks. 

Representative Lane Jean Thank you, Senator. Representative Wooten, we’re back to you. 

Representative Jim Wooten Thank you, Mr. Chairman. My question is on page 213. What is the content standards? It has zero expenditures, but yet we budgeted $161,000. What is that? 

Greg Rogers That is for when we do have the review for the content standards to come in, the expenses to reimburse teachers for mileage or any expenses they have to come in. Because when they go through the content standard, they do try to get teachers from all parts of the state to come and review content to update standards. 

Representative Jim Wooten Okay, but we didn’t spend any money. 

Greg Rogers I don’t know that they had it last year. I’d have to go back and look and see when they were doing it. 

Representative Jim Wooten Can you do that? 

Greg Rogers Yes, sir. 

Representative Jim Wooten Next question is right under it. School funding contingency is 25 million budgeted, authorized, but no expenditures, no budget. 

Greg Rogers That’s earlier when we talked to Representative Gramlich about that’s the 25 million of unfunded appropriation that during the year if we don’t have enough appropriation in a certain program, then we have to come back to Peer to do a reallocation of resources and move that appropriation to that line item. So it’s just an unfunded appropriation to use if needed. 

Representative Jim Wooten All right, and then one more question, Mr. Chairman. On the isolated, special needs isolated funding, we spent 45, budgeted 175, authorized 175. And then two lines down, there’s another isolated 2 million, 2.1 million or 2.2 million. We budgeted almost 8 million. So what’s the difference in those funds and why the amount? 

Greg Rogers So isolated funding, in law there are districts that were identified as isolated school districts. And they receive foundation funding based on the amount of isolated funding based off their current ADM for those districts listed in there. 

Once we’ve met the law, also then says once we’ve met all the qualifications for those isolated districts, any additional funding left over that moves down to special needs isolated funding. Special needs isolated funding is for those districts that are considered isolated by law definition that have additional transportation route miles or square mileage that they get additional ADM funding based off their isolated status. 

So that’s those two different line items. One is listed in law by the district that has to get it. And so due to consolidations or school closures, that list is– not as many get the isolated funding. So that additional leftover isolated funding, I guess I’d call it, goes down to be used in special needs isolated. 

Representative Jim Wooten Okay, so special needs is like transportation? 

Greg Rogers Yes, sir. 

Representative Jim Wooten There’s a difference. 

Greg Rogers Yes. 

Representative Jim Wooten But isolated district is the whole district. 

Greg Rogers Correct. Yes. 

Representative Jim Wooten Thank you. One more question for you, Mr. Secretary, relative to economic education. There’s 400,000 in the budget, but it’s my understanding that in special development or professional development, there will be additional funding for that education, economic education program. 

Jacob Oliva So when we submit our governor’s letter, there’s going to be a request for additional funding to support that initiative. 

Representative Jim Wooten So but the money that’s requested is in another category rather than being in economic education?

Jacob Oliva It would come out of this budget, so we feel like we can cover that. 

Representative Jim Wooten Thank you. Thank you, Mr. Chairman. 

Representative Lane Jean Thank you, representative. All right. Representative– excuse me, Senator Flowers, you’re recognized. 

Senator Stephanie Flowers Thank you. I’m looking at pages 233 and 221 dealing with special education services. Do we not receive any funding from the Department of Education, the United States Department of Education, for special ed services? 

Katie Walden Senator Flowers, the federal funding is appropriated in the DESE operations bill. So that’s not included in this budget. It’s just in the DESE operations act. 

Senator Stephanie Flowers DESE meaning Department of Education? 

Katie Walden Yes, ma’am. 

Senator Stephanie Flowers So it comes up in a different appropriation bill?

Katie Walden Yes, ma’am. And that one is not part of the budget presentations for right now. But the bill has been drafted and will be introduced in the fiscal session for this committee to hear. 

Representative Lane Jean Senator, it’s funded out of the public school fund. 

Senator Stephanie Flowers So is that a part of this adequacy? 

Katie Walden No, ma’am. So the Department of Education appropriation bill has one large federal appropriation. That’s not part of the budget that you’re hearing today. That budget is separate, and you will see that full bill once the session begins when the bill is filed. This is only the public school fund appropriations that you are hearing today 

Senator Stephanie Flowers So what we receive from the Fed’s Department of Ed augments what the appropriation recommendation is for what we’re looking at today? It’s supplemental–?

Katie Walden The state funding is supplemental. Yes, ma’am. 

Senator Stephanie Flowers Well, the state funding or the federal funding would be supplemental? 

Jacob Oliva So, I think I’m going to make sure I’m getting the right question. We will receive federal funding to support public schools and the students in those schools. Those dollars are used to supplement what is the investment by the state. In fact, there’s federal restrictions that says we cannot supplant. 

So because we get federal dollars, we cannot take away state dollars. So we have the state dollars that we’re going to support schools and education, then we’ll receive additional federal dollars to help those students in those schools that may need additional support and resources. 

My understanding is that federal supplement component is going to come to the committee next week during fiscal session– or next month, I apologize. 

Senator Stephanie Flowers So is the federal funding specific for special education services? 

Jacob Oliva Not all of it. So there’s different federal funding categoricals, but there is a category for special education funding. Yes, ma’am. 

Senator Stephanie Flowers The other question I had, I wanted to see if you had a take on transportation. I don’t know whether it’s isolated funding or something dealing with transportation. I learned this past year we have this formula that I didn’t understand. I don’t think anybody understands. It was created by somebody in the Bureau of Legislative Research years ago. 

And I’m hoping to file an interim bill to study it. But do you have any comments about transportation needs in these school districts? When we went up there to, I think it was White County, White River County, I don’t know. I think it was White County. 

Their school district superintendent has to pull money from other things that they really could use for those other things just to get transportation and access for the students to come to school or go to other places that the children need to go to. 

Jacob Oliva Yeah, so I think your point is well received because we have to transport students, right? And we don’t want to create a system where it’s called an unfunded mandate. The reality is, if you’re asking what I’m hearing for districts, setting competitive wage to get bus drivers is a challenge in a lot of parts of the states. 

Every time the price of diesel goes up, the cost of operating buses goes up. Buses aren’t cheap. In fact, trying to buy a bus, sometimes you may be on an over a year waiting list to even get buses or replacement parts. But in certain parts of our state geographically, you may look at a map and it says it’s only three miles away, but it takes 45 minutes to go three miles because of the way you go around. 

And that’s part of the challenge of why you have the enhanced transportation to try to recognize that there’s some challenges, especially in more of our isolated, more rural areas that have really long bus runs. The cost of transportation is significant and it seems to increase. 

Senator Stephanie Flowers Is the department going to make any recommendations to add additional funding for transportation, especially now that we’re in a war and gas prices are going to go up and are going up? What thoughts do you have about helping these school districts maintain their ability to get students to and fro? 

Jacob Oliva Well, I think that’s one of the great things about LEARNS is there was a set aside. And the legislature put a pot of money that allowed districts to apply for a specialized transportation modernization grant. And it was, I want to say it was around $50 million– or 5 million, sorry, about a $5 million categorical that we put out calls to school districts to find, is there ways to be more innovative? 

And we have found some districts that have really embraced that. And I think to answer your question is, is if we can find places like, I know even educational cooperatives are helping some districts with scheduling and routing and getting more sophisticated software to be more efficient. 

If we can identify some of those best practices, we want to share that with other districts. But that’s just one of those little innovative pieces about LEARNS that we’re seeing in action. And we’re starting to see the results, which can help that. Anytime we can find ways to modernize or be more efficient in transportation, we can reduce those costs. It would address like what you were saying you saw in White County. 

Senator Stephanie Flowers How many school districts do you have that have applied for those transportation modernization grants? 

Jacob Oliva It was pretty significant. I’d have to get you that list. I don’t know the number off the top of my head. There’s a lot of interest in that. 

Senator Stephanie Flowers Well, it appears, it just says budgeted $5 million for fiscal year 25-26. We don’t know how much has been spent of that. 

Speaker 5 Yeah, we can get you the exact amount. We’ve only awarded, I want to say about a little over a million and a half based on the over 100 applications that we received. Because it’s not only school districts that could apply. You had early childhood centers, different organizations, community organizations that could apply for it. So we received several hundred applications. 

But to date, we’ve only awarded less than 2 million. Because, again, it’s directed towards modernization. And so a lot of what we saw requested was to purchase more buses. And while there is a need for that, we really wanted to direct these funds towards, what are ways that we can look at different transportation, to the secretary’s point, being more efficient, finding alternate ways to transport students or software that can help you readjust your schedules and things. So we have not spent all of the funds that were previously allotted. 

Senator Stephanie Flowers And the funds that you mentioned, Mr. Secretary, that have been set aside, will those be able to be tapped into by school districts that will have rising gas costs? 

Jacob Oliva I’m not sure I followed that. Can you restate that? 

Senator Stephanie Flowers I heard you say that there is some set aside for transportation. I don’t know if you said transportation or just some set aside. 

Jacob Oliva Yeah, I think that’s the grant we were talking about. But then some school districts get additional categoricals for enhanced transportation. So that enhanced transportation categorical is to go to those districts to help offset those costs. 

Senator Stephanie Flowers That enhanced transportation deal. That’s that one I was speaking of about the formula. 

Jacob Oliva Yes, ma’am. 

Senator Stephanie Flowers Well, will your department give that a look? I mean, if you’ve got feedback from other school districts about the difficulty, and some of them that had been receiving that enhanced transportation funding, they went to zero, or it was decreased quite a bit. So, I mean, it seems like the department would want to make a recommendation if they’re hearing from school districts as I heard from that one up there. I forgot, I think it was White County, I would think we’d want to look at that.

Jacob Oliva And we’d be happy to work with BLR and see how we can kind of capture that feedback and see if there’s any recommendations. Absolutely. 

Senator Stephanie Flowers Okay. Well, thank you. And the last thing was about the joint use agreements. I see it’s only $5 million that has been requested or recommended. And how are we doing with, especially I always thought that these joint use agreements would be great, especially where you have health issues, obesity, diabetes and things like that with the students and the parents of students in the district for physical exercise, track, walking, way or whatever.

 I’ve only seen that joint use agreement maybe one time used in my district over at DeWitt when they put in a walking track. But it seems to me like if we are looking at things holistically, we would look at not only the academic achievement of the student, but the health, the physical well-being of the students and their parents. 

So I asked of the department many times in the past about why don’t we see these joint use agreements, especially in areas where the state has taken over school districts. And even with the idea of retaining third graders, seems to me like if there was a joint use program between the community and the school district that would focus on that child’s well-being in the classroom and outside, it would seem to me that that would help strengthen the ability of the child and the family, the parents, to be more engaged with student achievement academically. 

Representative Lane Jean Senator–

Senator Stephanie Flowers And that’s it. Would you agree? 

Representative Lane Jean I would agree. 

Senator Stephanie Flowers Not you. I’m asking the secretary. 

Representative Lane Jean Well, I’m trying to move this along. He can respond. 

Jacob Oliva I agree. And we can have further conversation on that. 

Representative Lane Jean Thank you, Senator. All right. Representative McAlindon. We’re going to non members now. 

Representative Mindy McAlindon All right. So thank you, Chairman. I had a quick question for you on the maternity leave. I assume that ginormous jump is because of Act 904, is that correct? 

Greg Rogers Yes, ma’am. 

Representative Mindy McAlindon And then does that cost include the cost for subs that will be needed for that period of time or is that cost picked up by the district? 

Speaker 1 So we reimburse for the cost of filling in for that teacher. So obviously through foundation funding, the school district is already getting the funding for the teacher’s salary. But whether it’s a substitute or a contract for someone else, a stipend to another staff member, however they are choosing to fill that position, we reimburse the cost to fill it. 

Representative Mindy McAlindon Okay, so just to sum that up, the district is not paying any of the costs for the increase in maternity leave? 

Correct. 

Representative Mindy McAlindon Thank you. Thank you, Chairman. 

Representative Lane Jean Thank you, Representative. Representative Duke, you’re recognized for a question. 

Representative Hope Duke Thank you,Mr. Chair. My question has to do with the master principal bonus and the National Board of Professional Teaching. I think page 225 and the larger manual 228. So on those bonuses, they’re the same question. 

Are you all tracking to see if when they’re being awarded, these bonuses, is it improving our students and our test scores? Or are we just putting the money out there and hoping that it does that because they’ve done this program or so forth? Is there any accountability on, this was successful so we want to continue to do this in the future? Do we revisit that? 

Jacob Oliva The short answer is yes. And when we look at kind of that Teacher Merit Program that was implemented with LEARNS, we’ve been moving more of those dollars and resources. We wanted to kind of grandfather folks in, but we’re moving more people into that evidence-based program where they’re doing the master lead teacher program that has an evidence-base component on if students are learning and making the national board semester principals part of the Teacher Merit Program. So we do want to track that. 

Representative Hope Duke So we are tracking their test scores, which is what we’re measuring by, that it is tracking with the people who are doing these programs, that we are incentivizing to do this, and we’re seeing long term that this is effective use of our money. 

Jacob Oliva That’s correct. Now, we’re in the third year of the Teacher Merit Program. So long term, that’s the goal, right? That’s the anticipation. But in the short term, when we look at the teachers that are eligible to earn up to $10,000 and we’re seeing repeat teachers, those are your master teachers. Those are the ones that we want to help mentor and lead the other teachers, because you’re not getting those kind of results on accident. There’s something special happening in your classroom. 

Representative Hope Duke And that system is in place for the future so that that is going to be continual to make sure that that is re-evaluating? The money just doesn’t stay there assuming that it’s doing its job? 

Jacob Oliva That’s correct. 

Representative Lane Jean Representative Gonzales Worthen, you’re recognized for a question. 

Representative Diana Gonzales Worthen Thank you, Chairman. My question has to do with English language learners. The description on page 220 talks about– it’s the fourth paragraph– English language learner serves students identified as not being proficient in the English language. 

This categorical funding program helps school districts provide specially trained staff, instructional materials, and training for teachers. Summer training academies are offered to teachers desiring additional training in teaching and assisting these students. And there’s been funding set aside at $384 for each identified English language learner in the 26-27 school year. My question has to do with the training academies and the professional development for teachers. 

Those that have been involved in offering the ESOL, which is a second language institute, had received a three-year contract, but that third-year contract was eliminated. That particular ESOL institute initially had been the ESO Academy that started 30 years ago. That particular training is one of our most comprehensive trainings for teachers who serve English language learners. 

So that training has been around for 30 years. Teachers do receive their ESL endorsement. They’re taking the four required graduate level classes. And actually Arkansas is probably one leading the way in terms of how we train teachers of English learners. Several other states have actually used our model to train their teachers because it is comprehensive.

 I’ve been receiving a lot of questions related to that, related to why we are removing a comprehensive training program that has really been doing a lot good. And it’s not just in-service teachers that attend that. It’s principals, it’s coaches, coaching staff in the teacher coaches, instructional facilitators, counselors. 

Because they all, if they are serving even just one English learner, they need to be up to date and know what to do. Lastly, oftentimes that individual, if they’re representing a building in their school district, oftentimes they end up being the ESOL coordinator or the ESOL lead in their building. And so there’s a lot of concern. I’ve just had a lot of questions related to eliminating this. And I just wanted to see if you could maybe explain why and what are we going to do in place of that? 

Jacob Oliva So thank you for the question. And thank you for always having a special lens on our English language learners, because we know we’ve got to make sure, especially in certain regions of the state where there’s large populations, we’re doing everything we can to support those students and families. 

So we always appreciate you keeping us grounded on doing this work for students. The summer academies that you talked about are happening again this summer. But I think the question that we need to ask is, is that the best use of our funds to support teachers and students in these programs? 

Because when we looked at the overall categorical and we pulled that together at the $385 a student, it’s almost $1.8, almost $1.9 million. So we had RFPs out with four universities to do this summer training. And what we’re finding is most of that training’s not providing direct support to students and those teachers. So I’ll give an example. One of our summer trainings, we had 20 participants that cost $256,000. 

We’re spending over $9,000 a teacher to get trained. Is that the best use of our funds when we’re spending, on average, if you look at the total program, we trained 289 teachers last year at almost $6,400 a teacher. So I think the question that we’re saying to ourselves, that’s a lot of money per teacher for training. How are we supporting students with that? Can we do that more efficiently? Can we hit more teachers? 

Would we be better off just giving these dollars straight to districts to do the professional development at the local level and impact more teachers and support more students? So I think the short answer to your question is we’re working on developing a plan. We’d love to bring you in and have a seat at the table. 

But the way we’re doing the institute now, I don’t think we’re getting a very good return on that investment. We’re making hotels very rich. And I think we should be working with students in classrooms and not spending the summers in a fancy city and giving people nice meals. 

Representative Diana Gonzales Worthen May I continue? Yes, okay. I understand in terms of the cost. And that cost is more than likely going to be a little bit high because they’re receiving graduate level credit at either at U of A Fayetteville, Arkansas Tech University, UCA, Henderson State University, and John Brown had been a part of that. 

So those are for graduate level classes, which the tuition and fees for a graduate level class is higher. And the hotels, we’re bringing in faculty, specialized faculty and also helping for doing the training and also for teachers that live more than an hour away so that they can attend that ESOL institute. My understanding is that’s not going to happen this summer. 

Jacob Oliva I checked it on today. My understanding is the institute is going to happen this summer. We want to plan something different. But at $6,400 a teacher, they shouldn’t get a college credit. They should get a master’s degree, right? 

So I think we need to just start asking those questions about how are we making sure that we’re supporting students and those teachers so that they don’t have to travel? Because right now, this program is limited to folks that have the capacity to travel and spend 10 days in the summer. We’re hearing from a lot of teachers that says, we need training. I can’t give up my summer. How do you get people in our schools? So it’s about finding that balance. 

Representative Diana Gonzales Worthen I understand. And I think that’s a great point. And I think we’re very much aligned in trying to find multiple pathways to provide the teacher training for our in service teachers, but also for our administrators, counselors, et cetera, that serve the students. 

However, is it possible when you’re working on restructuring or when you are looking at how we’re going to deliver these services in a different pathway to include some of the individuals who had been part of the 30 year plus years of doing the institutes? Because they have a wealth of knowledge and can give you a lot of feedback along with, I don’t know, there’s probably at least 75 or more ESOL coordinators statewide that could give input as well. Just an idea. 

Jacob Oliva I think we have to. I mean, we need to listen to the experts that are working with the students in the classrooms to make sure we get these programs right. So I would love to engage in that conversation, absolutely. 

Representative Lane Jean All right, we’ve got one last question. Representative Rye, can you make it brief? 

Representative Johnny Rye Sure will. Thank you, Mr. Chairman. Mr. Secretary, backstep a couple of steps. We were talking about school buses. Does that not fall under the 25-miles maintenance and operation that comes from on the local level, sir? 

Jacob Oliva I think it can be, right? Like they have that flexibility, I believe so, yes. 

Representative Lane Jean All right. Members, seeing no other questions. Have a motion for Executive Rec and a second. Any discussion? All in favor, say aye. Any opposed? It’s adopted. Miss Walden, we’re going to the State Library. 

State Library

Katie Walden Thank you, Mr. Chair. The next public school fund budget for your review today is for the Arkansas State Library. This is one appropriation amount. This is their aid to local public libraries. It’s in the manual on page 243 and page four of packet C. 

This is one appropriation for $6.5 million annually funded with public school funding. That’s general revenue. And money for this appropriation is used to provide aid to local libraries and library systems across the state. The budget is flat. It was $6.5 million and it is recommended to remain $6.5. Thank you, Mr. Chair. 

Representative Lane Jean Pretty straight. Seeing no questions, have an adoption for executive rec and a second. Any discussion? All in favor say aye. Any opposed? And the last one on the Education is career and technical. Ms. Walden, you’re recognized.

Career and Technical Education

Katie Walden Thank you, Mr. Chair. Sorry. Thank you, Mr Chair. Beginning on page 248 of your budget manual and page five of your schedule, this is for the Division of Career and Technical Education. These are the public school funds that they receive to provide vocational center aid, career coaches, coordinated career education services to districts statewide, as well as vocational startup grants. The total budget is $34.3 million and that’s a flat budget from FY26 to FY27. That’s the budget for career and technical education, Mr. Chair. 

Representative Lane Jean Seeing no questions, we have a motion to adopt for executive rec. We have a second. Any discussion? All in favor say aye. Any opposed? We thank the department. And we’ll ask Mr. Coleman to come up, and we will start on the Department of Public Safety. And just to go ahead and save time, just have the department come on to the table. And Mr. Coleman, whenever you’re ready, you can proceed. 

Public Safety

Dalton Coleman All right. Thank you, Mr. Chair. My name is Dalton Coleman, BLR Fiscal Staff. If you’ll turn to page 256 with me, we’ll go ahead and get started looking at the Department of Public Safety. Now, Mr Chairman, there aren’t too many changes to talk about throughout the entire department today with public safety. 

And the Division of Administration and Shared Services that we see on page 256 is no exception to that. For instance, if you look at the fiscal year 26, authorized appropriation totals $22.1 million. The biggest chunk of that’s coming out of the public safety paying account at $8.9 million. Nearly the same thing in fiscal year 2027.

 We have a total of $22.2 million again. And near the same amount at $8.9 million coming out of the paying account. With that, Mr. Chairman, there are no significant changes to this division at all. And I’m happy to ask or answer any questions. 

Representative Lane Jean Senator Rice, did you go off or are you back on? You’re recognized. 

Senator Terry Rice It’s going to be for the department .

Representative Lane Jean Say that again. 

Greg Rogers It’s going to be for the department. 

Representative Lane Jean Okay. Well, go ahead. 

Senator Terry Rice Thank you. Appreciate you all being here today. Can you give me an update on where we are on the intended elimination of the federal surplus program and the entities tied to that? Or is it still open for discussion in the budget session? Update me, please. 

Mike Hagar Yes, sir. 

Representative Lane Jean Go ahead and identify yourself. 

Mike Hagar I’m sorry. Mike Hagar, Secretary of the Department of Public Safety and Director of State Police. We’re still working with the Governor’s Office in that process. As far as it being up for discussion, we’re kind of past that point and we’re in the closeout procedure of doing that. 

It’s a process so that we’re having to follow through the federal side of the house, as well as state, on the program or the process, but also the closed out program with the federal side. So if there’s anything specific, questions you have, I can try to answer those or I may have to punt to Director Gary or Karen or CFO to answer anything specific.

Senator Terry Rice Have you been made aware of a long list of cities and towns that have requested that to continue? 

Mike Hagar Yes, sir, we have. 

Senator Terry Rice Okay, and would you be in agreement with what in previous meetings that we’ve discussed that there’s been– do I remember correctly there’s been something around $9 million worth of goods obtained for entities in Arkansas cities, state– excuse me, cities, towns, fire departments, various things, for roughly a cost of $300,000 or less lost per year in the last three years. Would that be correct? 

Mike Hagar I couldn’t speak to those specific numbers. 

Senator Terry Rice You got somebody there that could? 

Representative Lane Jean Senator Rice, we haven’t got to that part yet. 

Senator Terry Rice Yeah, I realized that. And that’s the reason I asked. He took the question. So he’s the man at the top and he’s the one talking to the governor. So I’m willing to talk to his underling. And that’s respectful. But this has a lot of eyes on it. 

And I realize there’s some big ticket items that are not available anymore. We’re told they’re not available any more. But there’s a lot of goods that is still federal surplus that is gotten for the state of Arkansas, that if we try to do anything for the cities and towns and fire departments all across the state, we can’t touch it with what we could fund them. 

The other thing I want to know, and you can tell AJ to do it when he’s up here, I want to know what’s your plans for that facility. I want to know up front, if you know it, is this a plan that y’all are going to do something else, and the thing that’s standing in their way, you’ve got to get rid of this. Is that a fair question? 

Mike Hagar Yes sir, absolutely. We’ve heard that speculation. I’m not sure where that started or where it came from. But, no, sir, the only plans for that facility right now is to stockpile preparedness program for natural disasters. 

Specifically, we had heard that the state police wanted to acquire that property for an auto shop. And to be completely honest with you, we have three auto shops right now that we have a tough enough time keeping staff funded. And so there is absolutely no need or no desire for the state police to use that property at all. 

Senator Terry Rice So if we’re not going to use it for the good of what it’s used for now, would you be okay with the state just selling it and getting rid of it? 

Mike Hagar That would probably be a better question for director Gary because I know he is planning on using that to stockpile preparedness items. So I would hate to dive off in that too much. And I also don’t know as far as the agreement that we have, I believe, with the city of North Little Rock, the way we acquired that property to begin with. I don’t know if we’re in a position where we could just sell it, but that would certainly be entertained. 

Senator Terry Rice We’ll let director Gary. 

Mike Hagar Yes, sir. Thank you. 

Representative Lane Jean Representative Wooten, you’re recognized. 

Representative Jim Wooten Thank you, Mr. Chairman. Colonel, on the number of employees in the Department of Public Safety, how many do you have total? Counting the state police and everybody. 

Philip Warner Philip Warner, head of HR. We’ve got 1,433 filled positions. 

Representative Jim Wooten Total positions in public safety? 

Philip Warner Yes, sir. And state police, it’s 1,001. 

Representative Jim Wooten And the state police, is it included in there?  

Philip Warner Yes, sir. As a breakout, it’s 1,001. 

Representative Jim Wooten How many vacancies do you have? 

Philip Warner Right now we have 182 vacancies. 

Representative Jim Wooten Okay, how many of those are two years or older? 

Philip Warner So at this point, it’s 38. 

Representative Jim Wooten Are y’all looking at those on a regular basis to see if you need that many? How many of those are budgeted? 

Philip Warner Of those, honestly, most of those are not budgeted because of the act that you had where they were two years plus that they be surrendered. Most of those have kind of gone to OPM and they’re held aside, so we’re not utilizing those. 

Representative Jim Wooten On another subject, has the additional compensation that we’ve done the last two sessions and again this session we will anticipate to be done, is that helping in recruiting? I know you just had an excellent ceremony for a graduating class. Is that helping you in your retention of troopers? 

Mike Hagar Yes, sir, absolutely. It’s been a complete game changer for us, not only recruiting, but retention of our current personnel. So absolutely. 

Representative Jim Wooten All right, thank you.And one more, one more on Senator Rice’s questions and comments. I’m hearing the same thing from my cities and counties and small, particularly the small fire departments and that type. So I’m asking you, in your consultation and consulting with the governor that you share that concern. Thank you, Colonel. 

Representative Lane Jean Senator Dismang, you’re recognized. 

Senator Jonathan Dismang Thank you. And then, this may circle back. It sounds like we’re going to have another discussion about this. Senator Rice has left the room. I’m not aware of the rumor. I don’t know if that was an accurate response that it would be used for, I guess, vehicle maintenance or whatever. 

I was going to ask if Senator Rice would kind of let us know when we come back around to that later on, what is the rumor, to make sure that we’re all on the same page of what it’s going to be sold for. Because if I’m asked, I would like to know a little bit more. So maybe he’ll be back here in a little bit and we can have that discussion. 

Representative Lane Jean All right, looks like right now the last question is Representative Gramlich. You’re recognized. 

Representative Zack Gramlich Thank you, chair. Just real quick. And it’s just for my own education. I see on 256 you have not requested for the biennium. Like, are we going to be seeing that again in a year? Or are these going away? Just kind of educate me on that. There’s BL1, BL2, BL3. It goes down the list. 

Karen Perry Karen Perry, Department of Public Safety. Those appropriations were moved to the Commission on Law Enforcement Standards and Training, so they’re later on in the budget manual. 

Representative Zack Gramlich Perfect, thank you. 

Representative Lane Jean All right, do we have a motion for executive Rec? Have a motion and a second. Any discussion? All in favor, say aye. Any opposed? All right, we’re going to the Crime Information Center. 

Crime Information Center

Dalton Coleman Thank you, Mr. Chair. The Crime Information Center Division Appropriation Summary is on page 279 of your manuals. There’s only one change within this division and that is the ACIC National Criminal History Improvement Program. So the fiscal year 26 authorized amount for this appropriation is $823,000 and you’ll see that decrease to $405,000 in fiscal year 27. 

It’s roughly a $480,000 decrease and that’s simply to align better with federal grant awards. Makes our total for fiscal year 26 authorized 10.1 million. And you’ll see that decrease in the $9.7 million recommended for fiscal Year 27. Mr Chairman, that concludes Arkansas Crime Information Center. 

Representative Lane Jean Any questions for the department or staff? Seeing none, I’ll entertain a motion for executive rec. We have one and a second. Any discussion? All in favor say aye. Any opposed. Stands approved. Now to the crime laboratory. 

Crime Lab

Dalton Coleman Thank you, Mr. Chair. On page 294 you will see the division appropriation summary for the crime lab. Now there are no changes at all within this division. Our totals for fiscal year 26 authorized are $24.9 million. And the same exact thing for fiscal year 27 executive recommendation. Mr. Chairman, I’m happy to answer any questions. But there are not significant changes. 

Representative Lane Jean Members, we have any questions for staff or department? Seeing none, we’ll entertain a motion for executive rec. We have it. And a second? And a second. Any discussion? All in favor say aye. Any opposed? Stands approved. Next item is the Department of Emergency Management. You’re recognized, Mr. Coleman. 

ADEM

Dalton Coleman Thank you, Mr. Chair. We can find the ADEM Division summary on page 311 of your manuals. Now, I really only have one change here, just like Arkansas Crime Information Center, and that is the addition of the Arkansas Nuclear One Program. 

Act 583 of 2025 moved this from the Department of Health to the Division of Emergency Management, and that’s about a $2 million appropriation. If you want some more information on that, you can go to page 334 of your manuals, and you’ll see the breakdown of that. Mr. Chairman, that is the only significant change level to this division. I’m happy to answer any questions about any of the other appropriations. 

Representative Lane Jean All right, Mr. Gary, you want to come up? I think we got some questions for you. And we’ll start off with our members. Representative Wooten, you’re recognized. 

Representative Jim Wooten I noticed on line item on the Arkansas Nuclear One, we have almost 2 million recommendation on the executive branch and the agency. But we don’t have one– there’s no expenditures. What is that for? An emergency up there? It’s on page 311. 

Karen Perry So this program came from the Department of Health. So Department of Emergency Management did not have any expenses until this fiscal year. 

Representative Jim Wooten Say that again. 

Karen Perry This program moved from Department of Health to emergency management. 

Representative Jim Wooten It’s being moved to the Department of Health? 

Karen Perry No, it came from Department of Health. 

Representative Jim Wooten Came from the Department of Health. Well, they didn’t spend any money? Or are we not spending any money, your agency? It’s because it has 24-25 and 25-26, it has no expenditures. 

Karen Perry The expenses are going to be reflected in the Health budget manual. 

Representative Jim Wooten The new budget? Well, here you’ve got 2 million. Here you’re showing 2 million. 

Karen Perry That’s our agency request. 

Representative Lane Jean Mr. Wooten? 

Representative Jim Wooten Yes. 

Representative Lane Jean We’re going to the Department of Health later. Those figures will be in that budget when we get there to it. They weren’t in this budget until this year, so there’s no prior actual expense. But you’ll see it in the Department of Health when we get to it. 

Representative Jim Wooten Thank you. 

Representative Lane Jean All righty. Thank you, sir. All right, next member of the committee is Senator Rice. You’re recognized. 

Senator Terry Rice Thank you. Mr. Gary, you heard my questions earlier. And I know you’re well up on the interest and concern about the federal surplus program. Can you give me any update? Has there been any movement of hearing from the municipalities across the state that feel like this program is worthy of funding? 

AJ Gary Yes, sir. AJ Gary, director of the Arkansas Division of Emergency Management. So just to kind of go back on what Secretary Hagar said, we are in the process of working through the closure of federal surplus property. That is not something that happens quickly. 

So currently, we had to produce our right of plan on the liquidation of the property that’s inside the warehouses. So we’re waiting on approval of that. That will then have to go to GSA and then we’ll have to have, I believe, a public comment period after that. So we’re still a little ways down the line before that can be totally closed. 

Senator Terry Rice My figures from memory is that we were garnering something like $9 million worth of goods and coming up about 300,000 short for the last three years. Is that correct? 

AJ Gary So I cannot say that those are exact numbers. I know that throughout the years with that program, we have pushed a lot of items that are great savings to the localities, to fire departments, cities and counties. I do know that over the last few years because of items that are coming in, we weren’t bringing in enough to sustain what we had going with the number of personnel that we had at that time. 

Senator Terry Rice It wouldn’t self fund like it was doing before?

AJ Gary That is correct. 

Senator Terry Rice Are we still the only state right now that is in process shutting down the Federal Surplus Program? That was testimony, I believe. I believe that was testimony previous. And then there was maybe one other state considering it, looking at what we were doing. 

AJ Gary Yeah, yes, sir. As far as I know, we are the only ones that are at this process of closing down. 

Senator Terry Rice Okay, can you state with this proposed budget, the colonel said that you’re going to use it for some other storage. Do you have a value of that property, the state value of that property?  

AJ Gary I don’t right now. The value of it, that property was turned over to the Arkansas Division of Emergency Management when the FSP, federal surplus property program, was moved over to us from, I believe, it was workforce services quite a few years ago. That property is deeded to the Arkansas Division of Emergency Management. We do have control over that facility. 

When the discussion started taking place of FSP closing down, then we were looking at the possibility of utilizing that facility, that warehouse. Throughout the years, during disasters, federal surplus property personnel have helped us with storing disaster related items there at that warehouse. In fact, we don’t really want to talk a whole lot about the COVID years. 

But during that time period, we utilized that warehouse for lots of PPE. If y’all remember, it was very difficult to get items like that, hospital items into the state. So we used that as a distribution center to push out those very important items out to our healthcare officials and other first responders. 

We do currently have sandbag machines that are owned by us that we deploy out into the state of Arkansas whenever we have flooding events. Right now they’re sitting in a parking lot behind our facility. So, one use for the FSP facility is to be able to store that, to be to continue to store pallets of water for our water missions around the state that pop up pretty frequently, also store tarps and stuff for tornado damage.

 I’m looking forward, trying to plan for the future. As changes in the federal FEMA programs take place, I feel like that there will be more things put on the state of Arkansas. And I think it’s going to be imperative that we’re prepared for any events that happen that we may have to take on on our own. 

So, we could also possibly use the warehouse for a joint field office. When we do have a federal disaster declaration and we’re bringing in additional federal resources, we could do the logistics out of that facility. 

Senator Terry Rice Do you concur with what was mentioned before, that it can’t be sold, that it would go back to the city of North Little Rock?

AJ Gary My understanding of that is deeded to the Arkansas Division of Emergency Management, so I’m not aware of anything that would prohibit the state from doing what they want with the property. 

Senator Terry Rice I just it concerns me with the amount of money, that we had previous testimony, and I can’t remember who from– I’d have to go back and look– that helps the state of Arkansas across the whole state for the amount of money that we’re spending. And I realize it’s not self funding anymore because we’re not getting the big ticket items. But it’s still a pretty good deal. Mr. Chair, are we flagging anything at this time or are we going to–? 

Representative Lane Jean You can flag any item you want to flag. 

Senator Terry Rice I’d appreciate that being flagged. Thank you. 

Representative Lane Jean Alright. Senator Dismang, you’re recognized. 

Senator Jonathan Dismang So I just want to make sure I’m tracking along. I asked this question, so this rumor that it’s going to be used for something else, I think, what was that all about? I mean, is that accurate, Senator, as far as it being used to repair vehicles? Or was there something else that I’m missing here? 

Mike Hagar So I’ve received a lot of phone calls from different stakeholders around the state, from city, county and also members of the legislature. I had multiple people say that they had been told that the state police had an interest in shutting down this program because we wanted to utilize that property for an auto shop. 

For the members that are familiar, we have a driving track that’s basically right across Remount Road that sits on Camp Robinson’s property, and we were wanting to utilize that property as an auto shop. We actually have an auto shop at the trike facility. I’d been told that. Another member had indicated that they had heard that we were wanting to house inmates on that property. And neither of those are factual. That’s never been in consideration at all. 

Representative Lane Jean Representative Beaty, you’re recognized for a question.

Representative Howard Beaty Thank you Mr. Chair. I’m over here, AJ. I appreciate you being here. Director, I’ve got a question more on the 911 rule enhancements in the AWIN budgets. I see under 911 you’ve got $2 million in grants that you administer. And I understand some of the qualifications on those counties under 27-5 and some of their restrictions. How often does that money turn over and award it out and replenish? 

AJ Gary Yes, sir. So just for clarification, we’re on page 336, the 911 rule enhancement fund? 

Representative Howard Beaty Yes. Yes. 

AJ Gary So 2 million of that, it goes out to the local PSAPs. And that goes out, I believe, annually, yes, in April of every year. So that’s sent out to the PSAPs based on that formula that’s in legislation. 

Representative Howard Beaty And so your department, you send that out so that that goes to zero. Is there a certain time that you send those out and how are those awarded out through the counties, and could you provide us some of that information? 

AJ Gary Yeah, so April of every year is when we push that money out to those localities, to the PSAPs in the state. 

Representative Howard Beaty My question, really, the heart of my question is, sending the money out is one thing, but I’m more concerned about, I guess, the speed at which we address requests from the county for implementation and improvement to their 911 and their AWIN communications. 

And specifically, I’m referencing Chicot County and their tower. There are five emergency services in that county that rely on that equipment. These guys purchased new equipment, put up the tower issues. There’ve been concerns raised on both sides. And I need that to be taken care of. And I needed that to take care of immediately. And note my hold on this budget until that’s done. 

Representative Lane Jean We’ll put a flag on the budget. I guess, Representative Ladyman, you’re the last one on the list. 

Representative Jack Ladyman Well, thank you, Mr. Chairman. Director Gary, I had a question, a nuclear question. I mean, a question about nuclear energy. I don’t want to scare y’all. But Representative Wooten brought this up a while ago. And I know you got this transferred from Department of Health, and that’s on a later page. 

But the Department of Health had a budget of 325,000. And your budget is $1.9 million total, I think. And I think that’s a great thing. Your budget breaks down more into the detail on how you’re going to do that. You’ve got different line items where they only had one line item. 

The Energy Committee was up at the nuclear plant last week and toured that. They showed us their safety protocols, which are very good. But my question is, what– maybe you don’t know yet because it’s new to you– but how are you going to implement this program? I know it talks about training the public. 

It talks about environmental monitoring. Can you just kind of give us an idea what your thoughts are on that? Maybe you haven’t got your plan developed, but what’s your thoughts on that? 

AJ Gary Sure, so I’m able to get a little bit of information. So we are federally required to train all offsite emergency response organizations, workers who may respond to an ANO type event. For the year of 2025, we trained 767 emergency workers. 

We also mail out instruction booklets to every address within a 10 mile radius of ANO. This is done on an annual basis to make sure every home is aware. We have emergency postings located at the parks and boat ramps within a 10 mile radius of ANO with instructions on what to do in case there’s an emergency at the facility. We do a lot of outreach, or the team does, to local county fairs, Arkansas Tech University outreach events, several other small organizations, including nonprofits and any other group or companies within that zone. 

We’re continuing to work on that, continuing to work with the county judges and the county OEMs that are within the vicinity of that facility. We actually, some of that money is pushed out to them to grants to help them also prepare. So our team at  ANO is working hand in hand with them. We are continuing to evaluate this program. 

What we want to do is make sure that we’re doing everything we can with the funding that we have. I’ve already, along with my senior staff, have met with ANO Entergy officials and just kind of talked through some different ideas, some different ways that maybe we can enhance alerting and so forth. So we’re continuing to work on that and we’ll continue to try to advance that program as much as we can. 

Representative Jack Ladyman So with all the discussion and advancement in nuclear around the country, executive orders from the president and a lot of other things, you feel like we’ve either got adequate abilities to respond to these, to make these sites safe, or we can develop those. Do you feel comfortable with that? 

AJ Gary Sir, I do. I do right now. I know there’s a lot of discussion. I will tell you first off, I am not a nuclear expert on any of this. But after this being moved under my responsibility, I’ve had the opportunity to reach out and try to learn a little bit more. 

I know there’s going to be, there’s a lot of talk about additional nuclear type things, including small module reactors. So, I think that’s some things that we’re already talking about and already trying to look at. What will that look like if we have those in the near future or in the future that are deployed in the state? And looking at what we would have to do to increase any type of safety or security things in those areas. 

Representative Lane Jean Representative Painter, you’re ready. 

Representative Stetson Painter Thank you. And this is not a vacancy question. So appreciate that. Director Gary, can you talk to me a little bit about the 2019 levy mitigation cash fund? I get that that was for the record rainfall and all that, but it’s just sitting there. It hadn’t been used. So why are we still dealing with that six, seven years later? 

AJ Gary Yeah, so that, as you know, I think you know that was a program that started after the record Arkansas River flooding. We had a lot of issues with levies in the state. I think there was 10 million, if I remember right, that was put into that program. So that, we have finished out. All those grants have gone out. So I believe Miss Perry is saying that we’re ending that. So that’s coming out of this section. 

Representative Stetson Painter So what do we do with the– it’s minor, very minor compared to the whole budget. But what do we do with that money since you’re closing the program? You got to give it back to who or what? How does that work? 

Karen Perry Well, we don’t have the money. This is just the appropriation that was left. 

Representative Stetson Painter So after that, we will no longer ask for the appropriation? Okay, thank you. 

Representative Lane Jean All right. Members, seeing no more questions, we’ll entertain a motion for executive rec. We have a motion and a second. Any discussion? All in favor say aye. Any opposed? Mr. Coleman, we’re going to Law Enforcement Standards and Training.

CLEST

Dalton Coleman  Thank you, Mr. Chair. On page 354 you can find the Law Enforcement Standards and Training Division appropriation summary. First line item of this table shows the operations portion of the budget for the division at about $4.6 million for both years of the biennium. Our totals authorized for fiscal year 26 is 6.6 million and right about the same number for fiscal 27. Mr. Chair, there are no significant change levels to this division. I’m happy to answer any questions. 

Representative Lane Jean Members, we have any questions for staff or department? If not, we’ll entertain a motion executive rec. We have a motion and a second. Any discussion? All in favor say aye. Any opposed? It is adopted. We’ll move on to Public Safety State Police. 

State Police

Dalton Coleman Thank you, Mr. Chair. We can find that division summary on page 386 of your manuals. Looking at the totals first, fiscal year 26 authorized total for the division is $136.1 million. And just a slight increase to that in fiscal year 27 at $137.1 million. I think there’s an extra $7,000 in there. 

There is one change to note on page 397 of your manuals. It’s the ASP operations appropriation. And there’s just a small difference here. The department is reallocating $106,450 from conference and travel to professional fees to better align with program needs. And Mr. Chairman, that’s the only change within State Police. I’m happy to answer any questions. 

Representative Lane Jean We’ve got a question. Representative Collins, you’re up first since you’re a member. 

Representative Andrew Collins Thank you, Mr. Chair. Just on that last change, that one change, what is that? What are the professional expenses we’re talking about? 

Karen Perry We need more professional fees for promotional testing. We do promotional testing every other year and this is the year that we would do the testing. 

Representative Andrew Collins Okay. 

Representative Lane Jean Representative Ladyman, you’re recognized for questions. 

Representative Jack Ladyman Thank you, Mr. Chairman. Mr. Hagar, this might be a question for you. I think I’m in the right section here. I hope I am. Training, when we do training for people, folks that come in to get their driver’s license, you know what’s happened in like Minnesota and some other places where people have reacted badly to law enforcement officers and bad things have happened. 

I had an incident– or a person asked me, do we do training for new people getting their license on how to respond to an officer if they stop them? You know, what should I do as a citizen if I get stopped by a police officer? Do we do that kind of training? If we don’t, could we do and would that be a big expense? 

Mike Hagar I don’t know that– well, I can say pretty comfortably that we do not do that type of training, as far as in the DL testing in the administration of those testing on the DL examiner side of the house. In the past, we have done educational programs on what to do if you’re pulled over and it’s probably time to do that again. 

We could reach out to our communications staff and ask if we could prepare something in the form of public safety announcements, things like that to reiterate the do’s and don’ts and to make the safest encounter for law enforcement and for the public. And I think that’s an outstanding idea, something we could definitely do. 

Representative Jack Ladyman Thank you for that answer. And I mean, my dad was a police officer and he told me how to act. But I’m not sure young people nowadays get that same training. And I think it’s something that we ought to consider. Thank you. 

Mike Hagar Completely agree. Yes, sir. 

Representative Lane Jean Seeing no other questions, we need a motion for executive rec. I have a motion and a second. Any discussion? All in favor say aye. Any opposed? Stands adopted. Mr. Coleman, I think that relieves you of your duty today. 

And we’ll have Ms. Witt come forward and we will take up the Department of Health. Secretary’s office. And if the secretary will come on up, save a little time. And as always, when you’re called on, identify yourself before you speak. 

Department of Health

Secretary’s Office

Cameron Witt Thank you Mr. Chair, good afternoon. Cameron Witt, BLR Fiscal Division. The Department of Health Secretary’s Office Appropriation starts on page 414 in your manual. There is a continuing level of appropriation in this request. It’s about $425,000. And the executive recommendation provides for the agency request. 

And if it’s all right, I’ll just go ahead and go to the department summary page. The department has 11 ARPA appropriations that are not requested to continue for the next fiscal year, as well as eight other appropriations that they are requesting to continue. I’m on page 417 in your manual. 

The agency is requesting changes for two appropriations, their health operations paying account and the nuclear planning grants appropriation, which both reflect a transfer of appropriation and administrative functions due to legislation enacted in 2025, Act 583. The result is an overall decrease in spending authority of about 1.8 million. 

The detailed budget summary for those appropriations are on page 422 and 425, which I can go to next. In total, the agency requests about $432 million in appropriations, which includes about $82.7 million in general revenue, and the executive recommendation provides for the agency request. So on page 422, you can see that there is an overall decrease of about 1.5 million. 

And most of that is due to the Act 583 Transfer of Appropriation and Functions. While on the next page, the Nuclear Planning Grants Appropriations, you can see that the agency request and recommendation on page 425 is zero. And Mr. Chair, that concludes my presentation on the Department of Health. Those are all their major changes for this next fiscal year. And I’ll be happy to take any questions. Thank you. 

Representative Lane Jean Thank you, Ms. Witt. We do have questions. Does the department want to say anything starting off or just go ahead and dive into questions? 

Renee Mallory Mr. Chair, since it’s been a very long day and we’re standing between y’all and the door, we’ll take questions. Thank you. 

Representative Lane Jean Excellent answer. Probably the best one of the day. 

Renee Mallory Okay, so I passed the first test, right? 

Representative Lane Jean All right, we’ve got Representative Wooten up first. 

Representative Jim Wooten Thank you, y’all, for being here. My question is straightforward. How many employees total are in your agency? Not just the Health Department, but all of the, what you encompass?

Don Adams Don Adams, Health Department. Representative Wooten, we have– are you talking about filled positions at this moment in time? 

Representative Jim Wooten No, I’m talking about all your positions. 

Don Adams All allocated positions? 

Representative Jim Wooten All allocated. 

Don Adams We have about 2,300 allocated positions 

Representative Jim Wooten How many of those are vacant? 

Don Adams We have 1,838 positions filled right now. 

Representative Jim Wooten So you have a total of– so you have about 500 vacant positions. 

Don Adams Yes, that’s across all our business areas, not just this one. 

Representative Jim Wooten Of those, how many of them have been vacant over two years? 

Don Adams We just had that report. OPM ran the snapshot on vacancies over two years. And we had 49. 

Representative Jim Wooten 49? 

Don Adams Yes, sir. 

Representative Jim Wooten How many of those were budgeted? Do you know? 

Don Adams Not exactly, but most of them were budgeted 

Representative Jim Wooten Why have they been vacant for two years? 

Don Adams Well, over the last several years, as we have vacant positions come open, we evaluate whether or not we need to fill it based on needs and on budget. And of course, we’ve lost federal funding and other things over the past few years, and we’ve had to take austerity measures to adapt to that new funding environment. 

Representative Jim Wooten Okay, but you’re still budgeting them. 

Don Adams Well, not all of them, and we’re going to un-budget a lot of them this fiscal year. 

Representative Jim Wooten I asked the question, how many of them are budgeted and you said most of them. That’s what I’m after. How much money are we holding in reserve out there that are actually not funded or they are funded and you don’t intend to fill them but the money is there? 

Don Adams Yes, sir. So if they’re budgeted we pay the roughly $6,000 EBD money.

Representative Jim Wooten But there’s the issue right there. And I appreciate you sharing that. Why are we paying health benefits? And I want you to be truthful because that’s not right. That’s, in my estimation, that is illegal. And that’s what I’ve been waiting for somebody to say. That money is not being applied for medical health on a person that doesn’t exist. Is that not correct? 

Representative Lane Jean Mr. Wooten, we’re not going to just pick on the Department of Health. That goes statewide. 

Representative Jim Wooten I know it. But he is the first one that has honestly stated why that position is funded. And that’s not your fault. 

Don Adams No, I’m not saying that’s why we– I didn’t mean to interrupt. 

Representative Jim Wooten It’s our fault. 

Don Adams But I’m not saying that’s why we budgeted the position so that we could–

Representative Jim Wooten You mentioned EBD.

Don Adams Yes, sir. We’re required to pay that on all budgeted positions, whether they’re vacant or not. And we budget positions, we’re budgeting the positions we’re allocated and the funding we have to budget. But sometimes we don’t fill them. And we’ve done that a lot lately, because the budget has shifted. And so we weren’t able to fill them or we determined through our current needs and shifting demand that we didn’t need to fill them. 

Representative Jim Wooten For the media purposes, I wanted to be very clear that this is a requirement that was passed by the legislature and has been approved by governors for several years. And it’s not right. 

Now, I know why we’re doing it. We’re doing it to reduce healthcare costs for the employees. What we ought to do is include that in the cost. We’re not being truthful with the taxpayers of the state on the true cost of insurance because it’s spread out through all the employees. 

And so what we need to do is assume that cost at the state level. I passed an act four years, five years, six years ago that required all employees over two years to be listed. And if they’re still there, then they do away with them. 

And now we’ve put that act in abeyance awaiting some solution to figure out. And the solution is very easy. We just need to adopt and incur in the state at our cost, not the employees’ cost, we don’t need to spread this among the employees because we’re the ones that said, you budget them and you’ll pay the EBD portion of it. 

Don Adams Mr. Chair, if I could just clarify one thing for the record, the decisions to budget or not budget a position in our agency has nothing to do with what you’re talking about. 

Representative Jim Wooten I’m not saying that. I’m not accusing y’all of anything because we’ve required it. But it’s not right. Thank you. All right. Thank you, Mr. Chairman. 

Representative Lane Jean Okay, let’s go to Representative Hudson. You’re recognized for a question. 

Representative Ashley Hudson Thank you, Mr. Chair. And this is for the department and not for BLR. I wanted to stick to the question of the allocation for employee salary. So I’m looking at page 422. And I just want to, I’m trying to make sure that we have this allocation correct. 

So I know that Representative Garner sent over some written requests for some responsive answers earlier this week with some questions about employee policies. My understanding is that the department responded and said that they could not answer her questions due to ongoing litigation. Is that the department’s position today? 

Renee Mallory Yes, ma’am. 

Representative Ashley Hudson So is it the department’s position that you can’t discuss existing policies regarding personnel policies? You can’t discuss those? 

Renee Mallory So based on what our legal representation has told us, we don’t need to answer those questions. Yes, ma’am. 

Representative Ashley Hudson Okay, so you won’t talk to the legislature about your personnel policies. I just want to make sure I understand that 

Don Adams If there’s a specific policy that you are requesting, obviously we would be happy to provide a specific policy. And if there’s a question within that policy, yes. 

Representative Ashley Hudson So here’s my concern. I believe that Representative Garner’s questions were asking for very specific policies regarding how the department balances the First Amendment rights of their employees against political pressure from any source, from the legislature, the executive, judicial, wherever. 

And my concern is, in terms of the budgetary items, that whether or not we have appropriately allocated for whether you have any idea of how we allocate for the costs of litigation and potential settlement expenses associated with these causes of action if we don’t have a policy. So I’m interested in what that policy is and how it’s being applied. 

Don Adams I apologize. I’m not sure I’m clear on your question as far as the budgeting piece of that. 

Representative Ashley Hudson Yeah, so let me give you a hypothetical. You hire a new employee into the department who is an avowed atheist. They post on social media about the fact that they believe that there is no God. And me as a devout Christian, I’m very upset about it. 

And I call you and I offer my thoughts on this hire and tell you that I’m going to hold up your budget unless you fire this employee. Do you have a policy in place with regard to how you deal with those employees because that is a very specific budgetary item. 

If I, as a legislator, am telling you that I’m going to hold up your budget because of something I saw on social media that one of your employees posted. So I wondered if you could walk me through what that policy looks like. 

Don Adams We don’t have a policy specific for that circumstance. And we would apply the policies– we do have employee disciplinary policies, conduct policies, code of ethics, those sorts of things. And we will apply our standards that we have consistently based on the situation. We would do that to the best of our ability and not have outside influence determine how we apply that policy. 

Representative Ashley Hudson Could we have a copy of those policies? 

Don Adams I do believe we submitted the social media policy. If you also want a copy of the disciplinary policy, we’d be glad to provide that. 

Representative Ashley Hudson That would be helpful. No, that’d be great. And then last question, does the department maintain a litigation budget or a settlement fund budget? 

Don Adams No, ma’am. 

Representative Ashley Hudson Okay. Thank you. 

Representative Lane Jean All righty. Representative Hammer. Senator Hammer. I’m sorry. I demoted you. 

Senator Kim Hammer I appreciate the compliment both ways, sir. 

Representative Lane Jean You’re recognized. 

Senator Kim Hammer Going back to the positions that the debate was going on a little bit about a while ago, just give me an idea what some of those vacant positions are. Are those like nurses that we are waiting to get them hired up? Or can you just kind of hit the high level on what some of those are that you’re waiting on or you’re holding them for? 

Don Adams Yes sir, it’s a variety of positions across the agency. Some of them are nurses. Some of them are more general analyst positions and administrative positions, clerical positions. It’s really a variety of different class codes that over the years, based on the evaluation that we’ve made, both on fundings and needs, we don’t fill a position if we don’t feel like it’s necessary or we don’t feel like we have the funding to cover it. 

Senator Kim Hammer But are all those positions in your– are all those positions essential? It’s just you don’t have anybody to put in them? 

Don Adams No, sir, I wouldn’t say that. If we feel like we have a need in order to provide the core services we provide, then we would move things around. We would do what is necessary to try to fill that position. 

Senator Kim Hammer Okay. And we don’t want any more positions than you got to have. But at the same time, we want you to have what you need because you guys have been very responsive to anything I’ve called and asked about. You guys have been responsive. And I want to compliment you. Want to make sure you got enough, but not too many. And we trust your judgment that that’s where you are. And so anything else you’d want to add to that? 

Don Adams We appreciate that. 

Senator Kim Hammer Okay, thank you. 

Representative Lane Jean Alright, members, we’re about to land this airplane. Representative Ladyman, you got the last question. 

Representative Jack Ladyman Thank you, Mr. Chairman. I appreciate you recognizing me. I’ll try to be short. My question is about the full independent practice credentialing on page 435. And the question there is, you’ve got a budget of, looks like $350,000, and you spent zero on that credentialing. 

And I know that’s been around for a few years now. So my question is, did you really not spend any money? Do we not have nurse practitioners that are requesting that? Or kind of where are we at? Are we acting on those requests? 

Matt Gilmore Representative Ladyman, Matt Gilmore, Department of Health. So that committee has formed. It’s meeting. We’ve got currently about a little over a thousand of those individuals out there. We’re going through renewals now. 

This is the first cycle of three-year license. So as far as the expenses and cost, the department’s been and the board of nursing and medical board have been kind of just sharing that. We’ve got a plan now to put some staff there. And we’ll be working through those funds we’ve collected there to help pay for that. 

Representative Jack Ladyman All right, thank you. 

Representative Lane Jean If no more questions, we need to entertain a motion of executive rec. And a second. any discussion? All in favor say aye. Any opposed? Stands approved. Ms. Cartwright, you’ve got two items on F1 and 2 and we’ll batch these together under one vote. 

Wendy Cartwright Yes sir. Thank you, Mr. Chairman. Wendy Cartwright, BLR Fiscal. Item F on today’s agenda, these deal with special language. Item F1, as we spoke about yesterday through letters that Ms. Barnhill spoke about from OPM, the pay plan that was adopted in the 2025 session changed the titles and grades for the positions. There’s a spreadsheet here. 

There are some pieces of special language that are currently in some agencies’ bills that reference those old titles and grades that no longer exist. And so BLR worked with the Office of Personnel Management and DFA Office of Budget. 

Those columns on the right hand of F1, those would be the corresponding updated titles and grades in the current pay plan. And so if the committee adopts this spreadsheet, it would direct staff to update those sections of special language with the updated title and grade according to the pay plan. 

Mr. Chairman, item F2 is also related to special language. It is a request from the Bureau of Legislative Research related to the pay plan. In the 2025 session, the Bureau updated both their personnel section and their special language to correspond to the new pay plan with that special language amendment. 

There were some titles that were inadvertently left out of the special language section. Once again, in the letter, that column to the right would add those titles to that piece of special language and get it in line. So, Mr. Chairman, those are the requests for item F. 

Representative Lane Jean Any questions for Ms. Cartwright? Seeing none, we’ll entertain a motion to adopt F1 and F2. We have a motion and a second. Any discussion? All in favor say aye. All opposed say no. It is adopted. 

Members, we appreciate you being here. Joint Budget, we will meet again on the afternoon of April 8th when we come back in for fiscal session. And I appreciate everybody that stayed the time and finished the work. We are adjourned.