Arkansas Legislative Council: PEER Review – October 1, 2009
Posted on October 1st, 2009
Date & Time: Wednesday, October 1, 2009 at 1:30 PM
Location: Room 171, State Capitol
Committee Information:Members on Committee
Agenda: http://www.arkleg.state.ar.us/assembly/2009/Lists/Meetings/Attachments/12031/I7815.pdf
Attachments: Click Here
This committee reviews matters pertaining to the financial operations and fiscal performances of state agencies, departments, and institutions, including but not limited to, program performance and evaluation, efficiency in the operation of agency programs and services, coordination of programs and services which require the expenditure of state funds, the stability and adequacy of the various fund and fund accounts of the state, and other matters pertaining to agency performance and accountability in the use of public funds may be referred to this committee. Matters pertaining to the organization, consolidation, merger, or abolishment of a state agency, board, commission, or program, and such other matters as maybe assigned by the Council.
1:30 pm – The first item on the agenda is the revenue. Apparently it is “not ready”, but the scuttlebutt is that it is “not good”.
1:32 pm – The Cash Fund Appropriation increase requests by the Dept. of Arkansas Heritage – Delta Cultural Center and for the Auditor of the State were both reviewed without question or comment.
1:33 pm – Budget Classification Transfer request by the Dept. of Career Education – State Operations was reviewed witout question or comment.
1:34 pm – We are now reviewing the Miscellaneous Federal Grant Appropriation Requests for FY10. The Northwest Technical Institute – Federal Direct and Equitable and the Dept. of Correction – Statewide Automated Victim Information and Notification (SAVIN) Grant II both reviewed without question or comment. Arkansas State Police, Dept. of Arkansas Heritage, one of the Arkansas Economic Development Commission grants, and the Disability Determination for Social Security Administration were all reviewed without question or comment.
1:40 pm – Rep. Dismang asked how the Appliance Rebate Program is going to work. This is administered by the Arkansas Economic Development Commissions. The Arkansas Energy Office will be providing rebates on applicances. The old appliances must be destroyed.
1:42 pm – Apparently things are very up in the air about the Appliance Rebate Program. The representative for the AEDC could not answer questions about income limits, how much will be spent on this program.
1:43 pm – Rep. English is asking if this is a component pulled from the Cap and Trade bill, and if it is similiar to the Cash for Clunkers program.
1:44 pm – Sen Broadway is making the point that before funds can be expended, Rules and Regulations need to be developed.
1:45 pm – Rep. Dismang is asking if we are being asked to figure out what to do with this money after we get it. The AEDC representative said he would have to get another expert to speak to Rep. Dismang later.
1:46 pm – Rep. Rice is asking what will be the result of overspending by the program. He points out that nationally this program is turning out to be about a weekends worth of business. He is concerned that by putting stuff out there with incomplete rules that retails are going to be wary that they will be getting stuck with insufficient funds like occured with the Cash for Clunkers program.
1:48 pm – Rep. Dismang asked that we return to that topic and we are continuing with the rest of the agenda.
1:49 pm – The remainder of the items in “E” of the Agenda were reviewed without question or comment.
1:50 pm – We are currently reviewing contracts between State Agencies. These items were reviewed without question, objection, or comment.
1:51 pm – We are now considering items for approval for appropriation and fund transfer requests from the Arkansas State Police.
1:52 pm – Rep. Green inquired if these items would still have to be presented to the full ALC. The answer was “yes.”
1:54 pm – Rep. Andrea Lea asked if the State Police Funds being considered are accumulative. They are, but they have to come before this committee to transfer those funds. Sen. Percy Malone is making the point that these funds could be placed in the regular budget. The response if that these funds are unpredicatable and do not lend themselves well to the budgeted process.
1:57 pm – Rep. Lea requested information on what the reason the fund was created originally, what it is supposed to be spend on, and the sources of revenue for the fund.
1:59 pm – Item G discussed above was approved by the committee.
2:00 pm – We are currently reviewing Emergency Transfer Requests (Agenda Item H). The Budget Classification Request by the Arkansas State Library was reviewed without question or comment. The Miscellaneous Federal Grant Appropriation Requests – FY10 by the Dept. of Higher Education and the Dept. of Correction were reviewed without question or comment. Those federal funds are probably from the ARRA (Stimulus) Program.
2:02 pm – The monthy reports are being reviewed by the committee. These reports were reviewed witout question, objection or comment.
2:05 pm – We are returning to item E.5 on the Agenda concerning the Appliance Rebate Program. Chairman Dismang is concerned about appropriating funds without a plan. Apparently there is a plan due to the DOE prior to October 15th. The grant requires a 50% match for the administration of the program. The cost will be $550,000 for administration. The cost to the taxpayers of state will be $250,000 that is not provided by the Federal Grant. There are 2.7 million dollars appropriated.
2:09 pm – Rep. Reep is asking if we don’t know how this is going to be setup, how do we know how much it is going to cost to administer. [I think the legislators are concerned that yet again the agency is asking the legislature to give them authority with no accountability.
2:13 pm – Rep. Stewart made the point that of this 2.7 million, about 20,000 would recieve about $130 bucks, but an outside vendor will make over $650,000.
2:15 pm – Sen. Broadway is begging to rubber stamp the agencies wishes. It is no wonder the agencies have no respect and run roughshod over the legislature because the legislature NEVER exercises it’s authority to manage the taxpayers money.
2:17 pm – Rep. Dismang made the point that this is taxpayers money and it doesn’t matter if it is federal or state funds he is uncomfortable approving an appropriation without rules and guidelines in place.
2:19 pm – Rep. Rice is asking if there has been any research done on both the public and private cost of administration. He voiced the opinion that the cost of adminstration seems high.
2:21 pm – The item was reviewed with the provision that it not be reviewed by ALC until a presentation of rules and regulation were put in place.
2:23 pm – Meeting adjourned.
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