[2:10] is he back here don't know [2:15] right members if you could go [2:16] ahead and grab your seat we're [2:17] going to get started [2:51] right members are calling this [2:52] meeting to order [2:55] good morning good morning [2:56] members at this time I want to [2:59] recognize senator Stone for a [2:59] morning prayer. Senator Stone [3:11] Thank you praise your holy name [3:13] dear Lord. I just pray that [3:14] everything that's said and done [3:15] here in this committee meeting [3:17] today will bring glory and honor [3:18] to you thelord let just let us [3:20] be mindful just ask that you be [3:21] with our country and our [3:23] nation's leadership dearlord we [3:25] just ask these things in Jesus' [3:26] name amen [3:31] thank you senator and members [3:32] in your packet is an [3:35] minutes from the last meeting I [3:37] need a motion to adopt those we [3:38] have a motion second all those [3:41] in favor say aye opposed ayes [3:42] have it and at this time we're [3:43] gonna recognize Doctor [3:45] Carlossilva for the presentation [3:47] of the August 2026 revenue [3:48] report Doctorsilva if you would [3:48] please you're recognized. [3:57] Thank Mr Charman carlossilva [3:58] Burereau of legislative Reearch [3:59] today I'm here to present the [4:02] August 2026 monthly revenue [4:03] report we thought gross [4:05] collections for this month at [4:08] $1.34 billion there's up50 [4:10] million dollars from the last [4:12] fiscal each day those first two [4:12] months of the last fiscal years [4:13] around [4:17] uh3.9% above there as we start [4:18] looking down the line and we we [4:19] take it all those off the tops [4:22] you're gonna have a1.8 bill $18 [4:24] billion for this first two [4:25] months of the fiscal year that [4:27] is57 million dollars above [4:29] fiscal year today and that [4:33] is5.1% above those those first [4:34] two months where we're gonna see [4:35] here in the bottle we have [4:36] include unemployment rate and [4:37] labor force participation is the [4:39] latest numbers we have at the [4:40] time this report has been put it [4:42] out as we look into the second [4:42] page we're gonna see [4:45] our accumulative deviation from [4:48] the F andA latest forecast we [4:49] have a a slight increase there [4:52] of4.5 million dollars above [4:53] forecast for this month [4:54] continuing that that positive [4:57] trend but if you look into [4:58] just the month we're gonna have [5:02] $14.1 million from the august to [5:04] August difference as we're [5:05] looking through our page three [5:07] and page4 we're gonna have our [5:09] general revenue collections [5:11] our first page as we we talked [5:12] about last month the cigarette [5:12] paper tax you're gonna see that [5:13] that that [5:15] difference there we had last [5:16] month was a a positive [5:17] difference now we have negatives [5:19] just the adjustment last month [5:21] we have the overpayment if [5:23] you want to think about this on [5:24] on that specific account now has [5:25] been ad addressed if looking to [5:27] the ear today you're not gonna [5:29] see that the large difference [5:31] and then as we're moving on [5:31] should should the other pages [5:33] you're gonna continue to see the [5:35] large difference on the dW [5:37] wiring statement fees and fines [5:39] and penalties due to the change [5:42] by Ac 969 of2025 with the [5:45] I will take any further [5:45] questions related to this report [5:51] we have a couple of questions [5:52] here. Senator Hester you [5:52] recognized [5:57] thank you on on page four line [5:58] three [6:00] the real estate transfer tax it [6:03] it looks like from 2005 to2006 [6:06] like they're consistent the [6:07] market may not feel that way but [6:09] our numbers are showing they're [6:10] consistent do you know if that's [6:13] is it consistent like [6:15] residenttially or maybe big [6:16] corporate things are selling do [6:19] you have any breakdown on that? [6:20] get it gets capped if you want [6:23] to think about it there if [6:24] you look into those tru months [6:25] difference we eventually gonna [6:27] reach that that the number of $2 [6:29] million but I do not have any [6:31] sight right now specific for the [6:33] real estate but I'll be happy to [6:34] talk to you later on ok thank [6:34] you [6:37] thank you senatorpresentative [6:38] wooten you're recognized [6:40] thank you Mr Chairman. Do on the [6:45] inflation, how much you [6:47] know gasoline's dollar quarters [6:49] a gallon more groceries are [6:51] higher food higher [6:55] utilities are increasing what [6:59] how much how much of the five [7:02] point 1% increaseries do you [7:02] think is due to inflation [7:06] we do not have any breakdown [7:07] specific to the inflation [7:09] again if there's something that [7:10] you would like us to look into [7:11] what how much of that is [7:13] inflation but definitely there's [7:14] inflationary pressures that [7:15] would feel part of this report [7:18] but there's no specific breakout [7:19] as we need to break out specific [7:20] regions and and how that's been [7:21] working on but yes sir I'll be [7:23] happy to look at that if that's [7:24] we like it [7:26] thank you thank you Mr Chairman. [7:28] all right thank youpresentative [7:31] members seeing no other [7:31] questions Doctor Silva, thank [7:33] you for the report. Reember that [7:35] takes us down to item E, the [7:37] executive subcommittee I'm going [7:38] to recognize my co-chair Senator [7:38] Boy [7:41] Thank you Mr Chair [7:44] the executive subcommittee met [7:47] Tuesday, September 15th and took [7:48] the following actions [7:50] recommended adoption by the full [7:53] ALc of interim resolution [7:56] 2025-009 by Senator Missy Irvin [7:57] which is attached to this report [7:59] and approved a motion to [8:01] authorize payment of per diem in [8:03] mileage to members elect for [8:05] atten attendance at interim [8:06] legislative committee meetings [8:07] following the special or general [8:09] election in which the member [8:10] elect successfully ran [8:14] in addition the subcommittee [8:15] heard the following announcement [8:17] concerning the October ALC [8:18] meeting schedule due to the [8:19] schedule for fall budget [8:21] hearings the ALc subcommittee [8:23] meetings for October will be [8:25] canceled with the exception of [8:27] peer review and administrative [8:29] rules which may meet concerning [8:31] imminent need items on Monday, [8:33] October 12th and in the [8:35] afternoon on Thursday, October [8:36] 15th. [8:38] mattertters normally submitted [8:39] to to the other subcommittees [8:41] that have been determined by the [8:43] ALc co-chairs of an imminent [8:45] need such that they cannot wait [8:47] until November Alc subcommittee [8:49] meetings may be added to the [8:51] calendar or taken up directly by [8:53] the full ALC at itsoctober 16 [8:56] meeting aggency imminent need [8:58] requests for October should be [8:59] submitted to the appropriate [9:01] subcommittee staff who will [9:02] convey it to the Alc co-chairs [9:03] through Director Garrty. [9:07] Reports and requests for action [9:08] usually submitted for [9:09] consideration by the full ALc [9:11] should be provided torector [9:13] Garrty as usual [9:19] I move adoption of the report [9:20] including adoption of the [9:21] interim resolution. [9:23] all right members any questions [9:24] on this item [9:27] seeing none do we have a motion [9:28] or we have a motion from Senator [9:29] Boy in a second. all those in [9:31] favor say aye oppose the ayes [9:32] have it [9:35] thank you senator. It takes us [9:37] down to administrative rules [9:37] uhpresentative Shepherd [9:38] you're recognized [9:43] thank you Mr Chairman. the [9:43] administrative rules [9:45] subcommittee met on Thursday, [9:47] September 17,2026 the [9:49] subcommittee received agency [9:50] updates on outstanding [9:53] rulemaking from the 2023 and2025 [9:55] regular sessions all rules were [9:57] reviewed and approved as noted [9:58] in the report. I would also [10:00] mention since we we have a [10:01] number of agencies here today [10:05] that Senator deeses reminded [10:07] the agency to get their [10:09] reports in by the first of the [10:10] month so that those [10:13] can be properly included by [10:15] staff and just as when to make [10:17] that reminder here today. So I [10:18] would move adoption of the [10:18] report [10:20] thank you Representative [10:21] shepherd.embers any questions on [10:22] this item? [10:23] all right seeing none we have a [10:26] mos and degree second we have a [10:27] second all those in favor excuse [10:29] me any discussion, excuse me. [10:31] all right seeing none all those [10:32] in favor say aye oppose the ayes [10:33] have it [10:37] item three claims review. I'm [10:38] going to recognize senator [10:38] dotson [10:39] thank you Mr Chair [10:43] The claimsview litigation [10:45] reports oversight subcommittee [10:46] met on Monday, September [10:46] 14,2026. [10:49] the subcommittee reviewed 11 [10:51] litigation reports and approved [10:53] one litigation settlement. One [10:55] claim was held by the [10:56] subcommittee pending receipt of [10:57] further information from the [10:58] claims commission [11:00] the subcommittee affirmed the [11:01] decision of the claims [11:02] commission as to all other [11:03] claims on the agenda. I move [11:04] adoption of the report [11:07] Thank you, Senator. M members [11:08] any questions on this item? [11:09] all right seeing none we have a [11:11] motion. can I get a second? It [11:13] was second any discussion seeing [11:14] none all those in the paper say [11:14] aye [11:15] opposed ayes have it [11:19] down to uhame and fish state [11:20] police and recognize Senator [11:20] Urban at this time? [11:23] thank you Mr Chair. [11:25] The game and fish statelice [11:27] subcommittee met on Monday. we [11:28] heard testimony from the [11:29] Arkansasame and Fish Commission [11:31] regarding enforcement protocols [11:32] and I move adoption of the [11:33] report [11:37] all right thank you senator [11:38] members any questions on this [11:38] item? [11:41] seeing none we have a motion. [11:42] Can I get a second? the second [11:43] in the discussion seeing none [11:45] all those in favor say aye [11:46] oppose guysy have it. [11:50] I'm gonna recognize Senator [11:51] Bryant for the hospitals [11:53] medicaid andvelopmental [11:54] disability study. [11:56] good morning Mr chair. The [11:57] hospital Medicaid and [11:58] Developmental Disability St [11:59] studyies subcommittee met on [12:01] Monday to hear testimony on the [12:02] following items an update on the [12:03] reimbursement rates under Living [12:05] Choices Assisted Living waiver [12:08] by DHS and presentation onorked [12:09] consulting and workforce [12:10] advisory group recommendations. [12:13] the subcommittee met again on [12:14] Thursday to adopt the attached [12:16] enema report which is F7 in your [12:18] binder on recommendations [12:19] concerning the Arkansas [12:20] legislative study on workforce [12:20] and social reform [12:25] to meet October 1st,26 deadline. [12:26] An additional update will be [12:27] provided at the final ALC [12:29] meeting of 2026 to inform ALC of [12:31] further progress. Mr Chair, I [12:32] move adoption of the report. [12:35] all right thank you senator. Any [12:36] any questions on this side of [12:36] members? [12:38] all right seeing none we have a [12:40] motion. Can I get a second? No [12:42] second any discussion? right [12:43] seeing none all those in favor [12:44] say aye oppose the ayes have it [12:49] at this time recognized [12:49] Senator Wallace for the [12:51] occupational licensing review [12:52] report you recognize. [12:54] thank you Mr chairir [12:56] Mr Chair the occupational [12:58] licensing revieweittee met on [13:00] Thursday and we received reports [13:01] on various occupational [13:03] authorization entities in group [13:05] one. I move adoption of this [13:06] report. [13:08] all right thank you senator [13:09] members any questions on this [13:10] item? [13:11] all right seeing no we have a [13:14] motion. can I get a second? Any [13:15] discussion seeing none all those [13:17] in favor say aye opposed the [13:18] ayes have it [13:21] and would recognizepresentative [13:22] Wardlaw for the peer report [13:25] you Mrir of the peer [13:27] subcommittee met on Tuesday, [13:29] September 15th. the subcommittee [13:30] reviewed reports reviewed [13:31] requests and approved the [13:33] following various temporation [13:34] temporary appropriations [13:35] American rescuelan Act [13:37] appropriations infrastructure [13:39] investment and Jobs Act [13:40] appropriations [13:42] and appropriation transfers and [13:43] restricted reserve fund [13:44] transfers. I movedoption of the [13:44] report [13:47] all right thank you [13:49] Representative Bordlaw. we have [13:50] a couple of questions. Senator [13:51] Tucker you re you're [13:51] recognized [13:53] thank you Mr Cha. I just have a [13:55] couple of questions for someone [13:56] from AdE on the on the learns [13:56] money. [13:57] all right [13:59] let me get some of them for the [14:00] department up here please [14:17] or ning when you get settled in [14:18] just introduce yourself for the [14:18] record and we'll get on to the [14:19] questions. [14:22] Good morning Courtneyallisfod [14:22] chief of staff department of [14:23] Education. [14:25] greg rogers department [14:26] ofducation. [14:28] Darrell Smith Department of [14:29] Education. [14:32] right thank you Mr Chair. I [14:34] just, I really have we not the [14:35] first time y'all sat at that [14:36] table in this meeting and I [14:37] really have very similar [14:39] questions to what I've I've had [14:41] before the first man is for this [14:43] 2627 school year how many [14:46] approved students we have on [14:47] the private school side and then [14:48] the homeschool side. [14:51] thank you so right now we're [14:53] looking at just over 28,000 [14:55] students in private schools and [14:57] just over 21,000 homeschools so [15:01] about49,000 approved overall and [15:03] then you know a question I've [15:05] asked before and we had had a [15:08] little conversation about his is [15:10] comparing the costs and I guess [15:11] I'm curious from both the [15:13] budgetary perspective and a cost [15:15] incurred perspective of [15:17] a student who's going to private [15:18] school as opposed to a student [15:19] who's going [15:21] to homeschool if we've run any [15:23] analysis about what the [15:24] budget should be for a [15:25] homeschool student relative to a [15:27] private school student and then [15:29] second that kind of forward [15:30] looking and then also backward [15:32] looking for the costs incurred [15:34] how much those students in [15:37] homeschool actually pay out [15:38] compared to students in private [15:38] school. [15:41] right so as you know the law [15:43] provides for 90% of foundation [15:45] funding to be in an EFA account [15:47] regardless of whether they're [15:48] private school or homeschool. [15:49] so we have not looked [15:51] specifically at what is the cost [15:53] of of an average say homeschool [15:55] student versus private school [15:56] student because the law allows [15:58] the equal amount for for each. [16:00] um, I can say though that [16:01] very soon probably within the [16:03] next few weeks the [16:05] University of Arkansas is [16:07] putting out a report looking at [16:08] all of the past expenses so [16:10] and it will have it broken down [16:11] by like how much was used for [16:13] tuition and fees how much it was [16:15] used for curriculum and so I [16:17] think that will give us a good [16:18] idea of where the majority of [16:20] funding is going and and it'll [16:21] be good information for you all [16:23] to have if you wanted to look [16:25] at putting any limits on [16:27] anything that are not already in [16:29] statute. OK that's helpful. [16:30] thank you and so I understand [16:32] that the law authorizes the same [16:32] amount for both. Does it direct [16:33] that [16:36] does it mandate that? Yes it [16:37] provides that anyone who is [16:39] approved for an EFA account gets [16:41] 90% of foundation funding [16:43] because of course the full [16:44] amount I think it makes sense [16:45] not to give the full amount [16:47] since you're not having [16:47] buildings and overhead and [16:49] things like a public school does [16:51] but yes so as long as they [16:54] are submitting eligible expenses [16:57] so the the curriculum fees, [16:59] tuition, supplies things like [17:01] that they can spend up to that [17:02] full 90% amount. OK. all right [17:03] thank you very much [17:05] thank you senator Representative [17:07] Wooten, is your question for [17:08] this department? [17:09] all right you're recognized [17:11] thank you chairman [17:17] how much how much is the70 [17:22] million in addition to the379 [17:25] million or is it all how much [17:27] money are you asking for? I know [17:29] you ask you got70 million here [17:32] but how many wants the total [17:32] amount [17:37] right so with the addition of [17:39] the70 million it's379 million [17:42] total yes sir so just short [17:42] of400 million [17:46] how how much [17:49] each one of them gets 90% [17:55] of foundation foundation money [17:57] OK. what's the total amount of [17:58] foundation money this year [17:59] not not per student [18:07] oh per student it's or the total [18:09] in public school fund so the [18:10] total amount per student this [18:12] year is $8,034 how much [18:22] $8000 last year it was 8020re0 [18:23] last year [18:27] so there's a reduction in the [18:29] amount of money that we're [18:30] paying [18:34] and we we're picking up the [18:35] health insurance, correct? [18:36] Correct. [18:41] yeah the foundation funding went [18:42] down just because we are pick [18:44] the state is picking up 100% of [18:47] the employer portion of the [18:49] state of the teacher insurance [18:52] how much what is the national [18:53] average for public education [18:56] on the foundation money [19:01] don't don't know it's $12,000. [19:05] what is ours 8084 that's just [19:07] foundation funding if you [19:09] include the categoricals and [19:09] everything else we get close to [19:11] the 15 I know exactly what it is [19:17] it's $8084 per student in the [19:21] national average is 12,000 and [19:23] we're spending400 million. can [19:27] you can you justify that once [19:28] again would say that [19:29] that the governor supports they [19:31] can you justify that can you [19:35] justify400 million dollars going [19:37] to private education and [19:39] we're4,000 dollars per student [19:40] chart below [19:42] the national average for [19:42] foundation money [19:45] Representative Wooton, the [19:47] question for us today is the [19:48] transfer of that70 million [19:49] dollars we're not relitigating [19:50] loans at this point if you want [19:51] to do that offline you're [19:53] welcome to realize that Chairman [19:55] but I think it needs the fact it [19:59] needs to be an explanation given [20:02] to this body why we can spend400 [20:03] million dollars on a [20:04] recommendation [20:06] and asked for70 million more [20:09] because the legislature approved [20:10] that with the Learns Act. [20:16] well they're biased but that's [20:17] that's all we've got to say [20:18] about it [20:24] Senator hickey you're recognized [20:25] I'm assuming this is not the [20:27] group you're looking for right [20:28] you [20:29] you guys are excused thank you I [20:31] believe we're gonna need [20:33] Secretaryhudson and someone [20:35] from DHS is that rightsenator [20:36] that's correct [20:38] just to kind of give everybody [20:41] an explanation I in no way [20:42] believe that we need to stop [20:43] this of course I think we all [20:45] know all know that we did I sit [20:46] on the pier and I take full [20:48] responsibility that we didn't [20:49] discuss this. I think a lot of [20:51] us knew what was going on. I [20:52] literally walked out of here, [20:53] went to lunch and thought you [20:56] know we just took over a [20:57] quarter of a billion dollars out [20:59] of restricted reserve and didn't [21:00] have any discussion for the [21:01] public to know so that's my [21:03] intent here today. so appreciate [21:05] you you all both being down here [21:06] if you would please just [21:06] introduce [21:07] yourselves so we have it on [21:08] record and then we'll get to the [21:10] questions you bet Jimhutson [21:10] secretary DFfa. [21:13] good morning Janet Mayn [21:16] Secretary DHS I'll try to roll [21:18] pretty quick. first of all [21:20] though I'm on a guest for Miss [21:21] mann. so [21:25] and and Mrhudson so I went back [21:27] and looked and we know that the [21:28] trust fund's been higher but at [21:29] the beginning of Fy26 we're [21:31] at492 million thereabouts [21:35] so in the report that you always [21:37] do that we have you to do to [21:38] come out with with the medicaid [21:38] trust fund [21:41] it's showing that we're about [21:41] 120 million [21:42] this month [21:45] Now one question I have for [21:47] Misss mann is this I went back [21:49] and tried to tried to see have [21:51] we paid the hospital assessment [21:52] out of that that we normally pay [21:52] quarterly [21:55] because it looked like to me the [21:56] last one we had done was May. [22:00] yes sir we are current on the [22:02] hospital assessment. We pay [22:03] it every quarter. Matter of [22:05] fact, this quarter's payment [22:07] will occur next week. OK, so [22:08] it's not out but it's not out of [22:09] the 12ies is what I'm trying to [22:10] say. [22:11] So, [22:15] so the 120 may be a little bit [22:16] high because what is that nor [22:17] normally30 or35 million? [22:21] it's what it looks like look [22:23] like yes sir the total payment [22:25] for the entire year on the [22:27] access payments to the hospitals [22:30] is around400 million. so the [22:31] state's share is around [22:36] 120 total so it would be about30 [22:38] million dollars a quarter so it [22:39] looks like that we're a little [22:40] high because I believe their [22:41] funds have already came into the [22:44] fund and we just haven't sent [22:45] them back out. so it appears [22:46] like to me [22:48] that we should we're probably [22:48] around 90 million [22:53] on the hospital on the hospital [22:56] fund they keep a quarter in in [22:57] their funds so that they can we [22:59] can draw it and pay it and then [23:03] they will reimburse or pay back [23:04] their assessment the following [23:07] quarter. so it's it's an inflow [23:08] and an outflow yes sir. So do [23:09] you think the true net amount [23:10] right now is still 120 million [23:11] or are we closer to 10re0? [23:15] as of august 1st we were at 120. [23:17] I I can't tell you what it is [23:19] today I think it's probably [23:21] supposed to be around 90 is the [23:22] way I say 90 to100 because we [23:23] haven't paid that out because [23:25] we, I had the bureau staff and [23:25] stuff to look so [23:27] and [23:29] unless you tell me that you all [23:31] paid it and it just showed up [23:33] somewhere else but it I just [23:35] know that it has not been paid. [23:36] not [23:37] not been paid for this quarter [23:39] but it is current yes sir and [23:41] I'm not trying to say it's [23:41] behind I'm just trying to I'm [23:42] just trying to say that we're [23:43] show [23:45] ing 120 the last one we made was [23:46] in May. [23:49] but I would say you know, enator [23:50] hickey we provide [23:53] you know this committee every [23:55] single month the snapshot on it [23:56] and so I want to be very careful [23:57] about trying to pick a [23:59] particular day in the month and [24:01] try to you know say here's the [24:04] balance as of today so let's [24:05] mean I think we can work off [24:05] what the end the end of the [24:07] month reporting is that we send [24:09] to y'all that shows you all the [24:11] cumulative activity for the [24:13] trust fund in that month. OK [24:14] again I'm I'm I'm just trying to [24:16] make sure that we've got about [24:18] what it is because like I say we [24:20] started and and I'm going back a [24:20] little bit further like I say [24:21] the [24:24] at 26 we had492 so now we're [24:24] about 100 million [24:29] you know is isish yeah we all [24:30] know how this thing moves it's [24:33] so big also for DHS there's been [24:35] some talk of course and I think [24:37] we all know this that we have [24:37] some other accounts that you all [24:39] have had and historically [24:41] they've showed like some higher [24:43] balances have we also been [24:47] paying those down and if so, and [24:49] I'd have to have you to come up [24:50] and I'm just asking for round [24:50] numbers [24:53] approximately how much have we [24:54] used of that [24:57] sayy in the last year or [24:59] biennial and I'm not I'm just [25:00] wanting to know I'm not saying [25:02] if it's 12 million or if it's [25:03] 100 million you know don't know [25:07] for the past year if that really [25:08] has been much of a of an issue [25:11] you know we really worked hard [25:13] two fiscal years ago to make [25:16] sure those paying accounts did [25:19] not maintain a high balance that [25:20] you know we kept it in the trust [25:21] fund until it was actually [25:22] needed and then move it into the [25:25] paying account. So I don't, I [25:25] don't think there's an issue of [25:27] having other funds out there [25:28] that are holding large account [25:29] balances that we're separately [25:30] spending on it's it really [25:30] should be a clearing account at [25:31] this point. [25:36] that's not exactly exactly what [25:37] I asked but I'm sure it's [25:39] because I wasn't clear so [25:41] historically though it appears [25:42] like we've always carried a [25:43] balance there and now we're not [25:45] carrying those balances and I [25:46] assume that we've [25:49] we've transferred that and used [25:51] that no fault of your own. I [25:53] mean we understand costs are up [25:55] so it's it is what it is at this [25:57] point. So do we know what those [25:58] other accounts that we've spent [26:00] down like historically have we [26:00] kept [26:03] a certain dollar amount in there [26:05] and now they're down cumulative [26:08] total to a lower amount and if [26:08] so about how much? [26:13] I'm just trying to come up give [26:17] a balance or a dollar amount we [26:19] we did work with the DFNA over [26:21] the past 24 months. we started [26:23] with the paying accounts that [26:25] had balances to make sure that [26:27] we were spending those and also [26:28] working to make sure that those [26:29] were state and federal funds [26:31] paying those bills appropriately [26:33] for the matching principle, then [26:36] we do have some funds that we [26:38] use every year. We use pharmacy [26:39] rebates, we use provider fees [26:43] we use a few other accounts [26:45] that are in the operating [26:47] process of of medicaid every [26:49] year. I mean we would have to go [26:51] back and scrub those to tell you [26:53] exactly what was spent again [26:54] I'll make sure we're we're we're [26:55] talking about you know the right [26:57] things here because sometimes we [26:59] use the term fund we're [27:01] referring to traditional funds [27:05] that all agencies have for them [27:07] it really is reflected in that [27:09] medicaid trustst report that has [27:10] multiple funds in it [27:13] their temporary paying accounts [27:16] really were funds that would [27:17] accounts that would receive fund [27:19] transfers from the trust fund in [27:21] order to pay their obligations [27:25] those accounts historically had [27:27] had higher balances we thought [27:28] that they should stay in the [27:29] trust fund until they were [27:31] actually needed held for a [27:33] minimum amount of time in the [27:35] temporary paying accounts just [27:36] to clear the obligations but [27:37] don't keep you know an average [27:39] balance in there. I think it's [27:40] better to have all the money [27:42] in one place so you can see [27:42] really what's in there [27:45] and we've done that work over [27:46] the past couple of years. I [27:49] don't I I totally, I totally [27:49] agree with your logic on what [27:51] you're saying. And again, I know [27:52] budget hearings are coming up so [27:53] we can kind of get into that but [27:56] what I'm saying is is that if [27:57] those were carrying a balance [28:00] and yes we went ahead and paid [28:01] them down. we're not seeing [28:02] where it come out of the trust [28:03] fund. it may have had some [28:05] balances and we used them to pay [28:07] so we've actually spent more so [28:09] that's all I was after but I [28:11] agree with your thought process [28:12] as long as we do that from now [28:12] and all the way in the future [28:16] that we don't start maintaining [28:18] balances in them then yes I [28:20] would rather do that it's since [28:21] I've been secretary that's been [28:23] my approach. OK? and again and [28:25] the next question for you [28:27] Mr.hudson I already you and I've [28:29] already discussed this of this [28:32] 200 million, you know what my [28:33] understanding was is that we [28:35] think that it is going to be [28:37] used by the end of the calendar [28:38] year or maybe [28:40] just a little bit after is what [28:43] we discussed we will use the 200 [28:47] million in this fiscal year and [28:49] it it will get us into you know [28:50] calendar year you know,2027. [28:53] I can't really give you a date [28:55] at this point but you know it [28:56] will be it will not get us to [28:57] the end of the fiscal year let [28:59] me say that well the other day [29:01] or two days ago it was my [29:03] understanding that we're we're [29:03] fully talking about calendar [29:05] year that we think we're going [29:06] to spend this $200 million [29:09] in this calendar year. or or [29:11] maybe into January so that's [29:12] that I think again what I just [29:13] said is that I think it will get [29:16] us into early 2027. I can't tell [29:18] you what the exact exact date is [29:19] don't expect you and I can't [29:20] tell you what the exact need [29:22] would be beyond that [29:23] but that was my next question [29:25] I guess that's my next question [29:27] then. so we're not going to have [29:29] very much money left in the in [29:31] the trust fund we're gonna [29:33] pretty much have used up the the [29:34] 200 million right here [29:38] so we have to anticipate that [29:39] we're going to have the rest of [29:41] the fiscal year which you [29:43] know, ends June30th. [29:44] so [29:47] what what all are you going to [29:48] be asking for you think to [29:49] finish out that fiscal yeargain [29:51] I I think as you already noted [29:53] we're going to go into the [29:54] budget hearings next month [29:57] the governor's going to present [29:59] her balanced budget in November. [30:00] you know, I think when she [30:01] presents that she'll address all [30:03] the needs that are required you [30:04] know to be able to fund state [30:05] programs. I'm not going to get [30:07] ahead of her on that. My [30:08] commitment though is this [30:11] I think there are three things [30:12] that we have to be looking at [30:14] one we need to make sure that [30:15] medicaid is adequately funded [30:17] for its current operational [30:19] obligations to get us through [30:21] the fiscal year. I think we have [30:23] to look at what are the [30:25] recurring revenue needs in [30:27] medicaid there are some that we [30:28] need to address in the fy 28 [30:29] budget and then thirdly we need [30:31] to look at the trust fund and [30:33] make sure the trust fund is [30:35] adequately capitalized to deal [30:37] with any you know, surprises [30:37] that occur in the future. Those [30:38] three things I think are things [30:41] that we need to be focused on as [30:44] we get into budget today we're [30:45] talking about the 200 million [30:47] that will is the immediate need [30:48] but those other things need to [30:49] get talked about too at the [30:51] right time. I just can't speak [30:52] to the particulars at this [30:53] stage. OK I just know that we're [30:55] gonna have to address it though [30:56] since we're not towards the end [30:58] of the fiscal year so I I'll [30:59] quit asking my questions and [31:00] just kind of say this [31:03] and and I think this is what you [31:05] said but I want to make sure. so [31:07] it's going to be our intent of [31:08] course the way that we've been [31:08] doing this with [31:12] this by taking out these [31:14] restricted reserves and whatever [31:16] has been in the trust fund of [31:17] course that hasn't run through [31:18] RSa or our budget [31:21] so the thing is is it's really [31:22] not a true p picture out there [31:23] of the public because you know [31:25] whenever we say that state [31:27] government's only grown x% [31:30] actually it's more because this [31:30] stuff for recurring [31:33] expenses and I think we're all [31:36] gonna say that medicaid is [31:37] recurring [31:37] so [31:41] is it going to be our intent to [31:42] try to get a very true pitcher [31:43] during budget hearings [31:47] to make sure that we're totally [31:49] running all of this in RSA into [31:50] the future [31:52] And I under and I heard what you [31:53] said about the trust fund [31:56] but that would just be for [31:57] surprises so this time next year [32:01] we're not sitting here and [32:02] saying well we've used all that [32:02] up [32:05] we put extra money into the [32:06] trust fund at [32:08] I think you and I are thinking [32:11] $250 to300 million I don't know [32:11] what everybody else here is [32:13] thinking, but we're still [32:15] thinking that our goal is is [32:17] just to maintain that running [32:19] balance of that 300 in there at [32:21] all times and not and not put [32:23] any more money in if we can. I [32:24] think we ought to strive for a [32:27] stable balance in the trust fund [32:28] that it would have some [32:29] oscillations in it but largely a [32:31] stable balance that's that's [32:33] something I'd love to see us be [32:35] able to do it but I do want to [32:36] challenge the premise [32:36] respectfully [32:40] now seriously because I mean [32:41] this this is this is a good [32:42] conversation it's a serious [32:45] conversation but the the the [32:45] idea that 100% [32:48] of the state's share [32:51] for medicaid should be in the [32:53] RSA would be a novel proposition [32:56] because I look back 10 years in [32:59] the past 10 years not a single [33:00] year [33:04] have we put 100% of the state's [33:07] share in the RSA and if we were [33:09] to do that and we had a very hot [33:10] year, I mean it's a hot year in [33:12] general temperature wise but it [33:13] was really a hot year for [33:17] Medicaid for F-26 and the spend [33:18] increased400 million. we really [33:20] are talking about from a cash [33:21] flow perspective more of an [33:23] expenditure issue then we're [33:24] talking about a revenue issue [33:29] 40 $0 million in 19% increase in [33:31] one year the previous three [33:32] years combined4%. [33:37] so we shed a lot of cash in that [33:39] one year. Now if I would have [33:40] come to you when we were doing [33:42] budget hearings for Fy26 and I [33:44] would say to you you know [33:45] there's a chance we may need400 [33:47] million dollars for the state's [33:50] share. let's increase DHS's [33:51] budget by400 million dollars. I [33:53] y'all would have thrown things [33:54] at me [33:56] I don't, I just don't think that [33:59] we can really view what is a $10 [34:02] billion insurance company as [34:04] something that we fund 100% [34:05] through ourA we've never done [34:08] that we don't do that with Ebd [34:09] we don't do that with retirement [34:11] plans there needs to be a [34:13] component to this that is [34:15] recurring revenue in please hear [34:17] me be in agreement with you that [34:19] we do need to look at increasing [34:21] the recurring revenue to [34:23] medicaid. there needs to be a [34:24] piece of it as well that [34:26] is just in reserves and we have [34:27] to have adequate reserves to [34:29] deal with that too the [34:31] conversation as to the relative [34:32] mix of that I think is [34:34] appropriate for budget there's [34:35] another category we haven't [34:36] talked about it is the expense [34:36] side [34:39] and I said that two or three [34:40] times during during fiscal [34:43] session this cannot just be a [34:45] conversation about revenue it [34:46] needs to be a conversation about [34:48] our expenses as well just one [34:49] more comment I know we've got to [34:50] go [34:53] that's your analogy of that's [34:54] fine but this is what I'll say [34:56] and maybe it requires [34:59] legislation and and and DHS [35:00] you're not the only one we can [35:01] sit here and talk about the [35:03] freedomccos because if we take [35:04] those out of restricted reserve [35:05] and it appears that they're [35:08] going to be recurring those [35:11] those also are making it [35:12] whenever we say state government [35:13] hasn't grown as much that it [35:14] really has. [35:16] so maybe it's something that we [35:17] need to look at as this [35:19] legislature that if there are [35:21] things like that and like the [35:23] trust fund that if we are taking [35:25] things out of restricted reserve [35:26] for what we all know is [35:31] recurring stuff that whenever we [35:33] report those numbers out there [35:35] to the public about how much [35:36] state government's grown that we [35:38] need to include those. I think [35:39] that's the most fair and [35:42] transparent way, because we [35:45] all know that it should be an [35:46] RSA but maybe there are certain [35:47] times but at least we need to [35:49] report that and put that [35:50] percentage in there that that [35:50] took it up another [35:54] whatever it whatever it does so [35:54] anyway thank you sir [35:57] thank you senator thank you [35:59] senator members we've got about4 [36:01] members in the queue. I would [36:01] like to remind you that the [36:03] question we're really debating [36:05] today is the transfer of this [36:07] 200 million so Senator Flippo [36:08] you're recognized [36:11] thank you Mr. Chairman and if [36:13] you'll forgive my informalities [36:14] Jim Janet you know I like you [36:15] guys you've always been very [36:17] honest with me. I'm not nearly [36:18] as smart as ent hickey but I'm a [36:19] little bit more in line with [36:23] brevity so I'll get to it on [36:25] a scale of 1 to10,10 being the [36:28] most healthy how healthy is our [36:29] Medicaid trust fund currently? [36:33] you know our medicaid trust fund [36:33] needs to be plussed up [36:37] it needs to be plussed upive me [36:38] a number to t [36:40] that's going to be in the budget [36:41] process this is the governor's [36:44] budget you know is it healthy? [36:44] Is it sick [36:48] Is it knocking on won't put a [36:49] healthy or sick label on it this [36:50] is math [36:51] right? I think what we have to [36:53] look at is the total resources [36:55] that we have available as a [36:56] state to meet meet our [36:59] obligations and we have adequate [37:00] more than adequate resources to [37:00] be able to do that [37:02] I'll take that as a4 or5. [37:10] Senatoreyton, you're recognized [37:11] thank you Mririr [37:16] Mrhudson I hope I can articulate [37:16] this well but [37:19] I think I heard you say [37:22] that we knew this was coming [37:27] and planned on pulling it rather [37:28] than including it in the budget [37:32] so in regards to the two00 [37:33] million dollars transfer [37:37] is that something that we knew [37:39] was coming and just decided to [37:43] not mention it during the budget [37:44] process [37:47] that sorry senator that's not [37:49] accurate. We we actually had the [37:51] $200 million you know approved [37:53] in the budget process we talked [37:55] about the $200 million during [37:57] fiscal session that there would [37:59] be a need and I said at the [38:01] table multiple times there would [38:03] be a need to infuse cash in [38:05] medicaid in this fiscal year. [38:07] Now what I will say is different [38:09] is they actually ran as I said [38:11] earlier they ran a little hotter [38:13] in terms of their expenses and [38:13] so they had a tremendous [38:15] amount of expense that we do not [38:16] foresee [38:19] for fy 26 that is part of the [38:20] issue that we have going on here [38:23] so when you talk about looking [38:24] back for 10 years and that [38:28] we have depended on the trust [38:28] fund [38:32] or other means rather than [38:33] include in RSA [38:37] that's it's a mixture of both [38:39] sir it's it's both you know they [38:40] get 1.8 [38:42] billion roughly let me get my [38:43] question out [38:45] so the question I've got [38:49] is whether or not those upcoming [38:51] transfers [38:53] are known or unknown [38:57] during the RsA and budget [39:01] process I mean if if we're if we [39:03] hold money and reserve and trust [39:06] accounts that's smart expecting [39:07] that there's something's gonna [39:09] happen and we're gonna need that [39:10] money or we might need extra [39:10] money [39:13] but if we know that there's an [39:14] expense coming [39:16] and we're ignoring that in Rsa [39:19] and not including it in the [39:20] budget [39:23] then I think we need to take a [39:25] real close look at that practice [39:28] that's all and I think that if [39:29] if we would know exactly what [39:30] our claims experience was going [39:31] to be [39:33] and we could plan that like if [39:35] we're buying staples or or paper [39:37] clips it would be much easier [39:39] but we don't know until after [39:40] the fact [39:43] you know what the claims are you [39:44] know what the acuity of the [39:46] claims are the number of claims [39:48] you know we have trends but the [39:51] recent trends did not point to [39:52] a400 million dollars increase [39:56] for fy 26 so you're saying [39:57] mostly this was kind of [39:58] unexpected [40:00] in terms of the claim side of it [40:01] there was a little bit of drop [40:03] off in revenue from the FM map [40:04] rate changing the federal F [40:06] mapping rate changing but that's [40:07] not the bulk of it the bulk of [40:09] it is we we had an unfavorable [40:11] year in terms of experience Well [40:13] thank you I I may have [40:14] misunderstood what you stated [40:16] earlier but I appreciate you [40:17] saying you was probably a poor [40:19] communicator sir. so I'll just [40:20] take the the responsibility for [40:21] that. right thank yousenator we [40:23] have one last remaining question [40:24] and I'm going to give this to [40:25] Representative wooten if you [40:25] would please keep your remarks [40:29] based on this $200 million [40:30] transfer we're talking about to [40:31] the Medicaidrustund if you would [40:33] please sir you're recognized [40:35] thank you Mr Chairman and I'll [40:36] maintain that advice [40:42] did I understand you correctly [40:43] that the 200 million [40:45] will be out of reserve funds [40:51] will you pay that out of reserve [40:55] funds the 200 million is in a [40:56] set aside in restricted reserve [40:57] the general assembly approved [40:59] that during the fiscal session [41:01] this would transfer that money [41:03] to the medicaid program to be [41:04] able to use for their current [41:07] obligations. yes sir. So give us [41:08] the definition of where you're [41:09] occurring. what what what [41:13] reoccurring is that in other [41:13] words it's not in the RSA [41:17] when I said we need to look at [41:19] increasing recurring revenue [41:20] for Medicaid [41:23] that that would be a place to [41:27] put that in RSA for medicaid the [41:31] question I had I have is it's [41:33] not shown in RSA how how much [41:35] money is offsa [41:39] how much money is in there [41:41] that's not not should that we [41:43] actually don't see because I [41:46] asked for a report on money [41:46] outside of RsA [41:51] how how many millions are we [41:53] talking about and and is that [41:56] basically surplus money no sir [41:59] the the bulk of state government [42:00] is funded outside of RSA. [42:05] it is a combination of special [42:07] revenue and federal revenues RSA [42:09] does not fund the majority of [42:11] state expenses and I think you [42:13] know that really but what is the [42:14] total dollar amount [42:15] of what of reoccurring [42:20] in the whole state budget that's [42:20] out of ourS a [42:25] must the total amount of [42:26] expenditures [42:31] 667 billion is the RSA budget [42:33] for Fy27 [42:35] so [42:41] the 200 million that you're that [42:44] we approved that is not [42:47] considered a part of RSA, ir. if [42:49] you look at the act this general [42:50] assembly passed [42:53] the todddily act is the revenue [42:53] stabilization actct. [42:57] that is where it's at. now is it [42:59] it's not in the RSA allocation [43:01] for Medicaid but this general [43:03] assembly when it approved the [43:04] balanced budget for the state of [43:06] Arkansas approved that $200 [43:07] million set aside. Y'all voted [43:08] for that [43:09] it's there [43:13] Well I recognize it's there but [43:15] is it going to be a reoccurring [43:19] expenditure as indicated the [43:22] the the governor will present [43:23] her balanced budget. it's not my [43:24] balanced budget it's her [43:26] balanced budget she will present [43:28] that according to statute in [43:30] November what she's proposing to [43:33] do for all RSa and then that'll [43:34] be you know subject for debate [43:34] obviously as we get into session [43:39] thank you thank [43:41] youpresentativeooten members [43:42] seeing no other questions thank [43:42] you for coming down.ppreciate [43:43] it. [43:46] hang on just a second. Senator [43:46] rice did you have a question [43:49] all right just a second [43:59] Senator rice we have a motion to [44:01] adopt this report do you have a [44:02] substitute motion? [44:02] right [44:03] yeah there you go [44:07] Thank you Mr chairir. I [44:09] appreciate the discussion on the [44:11] medicaid and I think it shows [44:12] budget [44:14] hearings coming up that we've [44:15] got some serious things to talk [44:19] about my request is on the EFA's [44:23] ond2 a lot of people our [44:25] whole goal is to educate kids [44:27] and we want to find the best way [44:29] a lot of concern that we need [44:31] to tap the brakes and come up [44:35] with some parameters so I [44:37] would ask that d2 on the EFAs be [44:38] pulled out for a separate vote [44:39] my motion [44:55] right so the motion is to pull [44:57] out the item d2 for the EFAs for [44:59] a separate vote that we'll also [45:01] include the the adoption of [45:03] the report is that correct [45:04] right [45:05] all right members you've heard [45:08] that motion we have a 2nd 2nd [45:10] all those in favor signify by [45:13] saying aye all those opposed [45:15] knows habitpresentative Wardlaw [45:17] has the original motion to [45:19] approve the entire report [45:20] including the album we just [45:21] mentioned. do you have a second? [45:24] right you have a second in [45:25] discussion seeing none all those [45:26] in favor say aye opposed [45:29] the ayes have it. right. thank [45:31] you members that takes us down [45:32] to item 12. we're going to [45:32] recognize Senator Mcee at this [45:33] time. [45:36] Thank you Mr Chairman. The [45:37] revenue subcommittee met on [45:39] Tuesday and reviewed methods of [45:41] finance alternative delivery [45:42] method procurements [45:43] discretionary grants one [45:46] ratification RfQ approvals [45:48] service contracts and received [45:50] reports all items were reviewed. [45:51] I moved the adoption of the [45:52] report [45:53] all right thank you senator [45:55] members any questions on item 12 [45:59] seeing none we have a motion we [46:01] have a 2nd 2nd any discussion [46:03] seeing none all those in favor [46:04] say aye oppose the ayes have it [46:07] I'm gonna recognize Senator [46:09] Petty for the state insurance [46:10] programme's report. you [46:12] recognize. Thank you Mr chairir. [46:13] The city insurance programmes [46:14] oversight subcommittee met on [46:16] Wednesday and they reviewed the [46:17] employee benefits division [46:19] contract amendment with Navidus [46:21] Health Solutions Lllc [46:22] subcommittee also heard a [46:23] presentation from Doctor Wayne [46:25] Weingarten with Pacific Research [46:27] Institute. I may I move for [46:28] adoption of this report. [46:30] all right members you heard the [46:31] report. many questions? [46:33] seeing none we have a motion. [46:33] Can I get a second? I have a [46:35] second any discussion saying [46:37] none all those in favor say aye [46:38] opposed the ayes have it [46:41] senator Davis you're [46:41] recognized for the personnel [46:42] report [46:45] Mr Chair the personnel [46:47] subcommittee met Wednesday [46:48] September 16th and reviewed the [46:49] request and reports listed as [46:51] items 1 through7 on the [46:53] personnel committee report, I'll [46:54] take any questions and have a [46:55] motion for adoption at the [46:56] proper time. [46:59] all right members you've heard [46:59] the report any questions? [47:03] seeing none we have a motion. [47:04] Can I get a second? we have a [47:05] second. any discussion seeing [47:07] none all those in favor say aye [47:09] opposed the ayes have it members [47:10] if you would please turn [47:11] to page two of your agenda we [47:13] have some review of [47:14] communications there's no action [47:16] to be taken on these so if [47:18] there are no questions on any of [47:18] those items [47:22] I'd like to recognize Senator [47:23] Urvin for a moment. [47:27] you're recognized [47:33] so members a part of the [47:35] executive subcommittee report [47:37] if you look at that report [47:39] attached to that is a resolution [47:41] the resolution was passed to [47:43] executive subcommittee level. [47:45] the resolution has to deal with [47:47] our duck population there was [47:49] a change at the federal level to [47:51] a proposed change to some [47:53] rules at the federal level that [47:55] would have devastated the duck [47:57] population to thanks to the [47:58] good work of [47:59] our director of the Arkansas [48:01] Game and Fish, our game and fish [48:02] commission and I think also the [48:04] governor's office and others [48:07] may have helped in this but [48:09] to basically say no don't change [48:10] the language because it will be [48:11] devastating to the state of [48:14] Arkansas. so this interim of [48:16] this resolution is really our [48:17] opportunity as a legislature to [48:19] also speak to that and be part [48:20] of the public record at the [48:21] federal level so that if these [48:23] changes are considered in the [48:25] future to that federal rule [48:27] change then we are on record as [48:28] to saying that we [48:29] agree with our Arkansas game and [48:31] fish commission and Arkansasame [48:33] andish director that we need [48:37] to keep the rule intact and [48:39] and make sure that conservation [48:41] and our duck population can be [48:43] as strong as possible because [48:44] as you know that's very [48:45] important to the economy of the [48:47] state of Arkansas. so that is a [48:49] that's the purpose of the [48:52] resolution and I can take [48:53] any questions but this was a [48:54] report that came out of our [48:55] subcommittee and I felt like it [48:57] was a good thing for the [48:58] legislature to also speak to [48:59] this and be part of the federal [49:01] public record thank you thank [49:03] you Senator Irvin. Members, [49:03] there is no other business for [49:05] this committee. thank you for [49:06] your participation we are [49:06] adjourned