Arkansas Legislative Council: PEER Subcommittee – November 5, 2009
Posted on November 5th, 2009
Date & Time: Thursday, November 5, 2009 at 1:30 PM
Location: Room 171, State Capitol
Committee Information: Members on Committee
Agenda and Attachments:
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 – Meeting called to order by Sen. Bryles. Richard Wilson is presenting the October Revenue Report.
1:31 pm – Last month the Revenue Forecast was revised downward and a new forecast was made. This month the State of Arkansas is $17.811 million below what the Department of Finance and Adminstration predicted we would be LAST month. [That is some mighty fine forecasting isn't it?]
1:35 pm – I will try to provide more revenue information as we go along. Right now we are covering Cash Fund Appropriation Increase Requests for FY10. Rep. Adcock is asking questions about the Department of Career Education – Rehabilitation Services. Apparently the services that make loans to individuals with disablities for assistive technology has been over marketed for the funds budgeted for loan. The agency began (administering the program) with $80,000 in appropriation (tranferred from ADFA, when they took it over) that is now exhausted. In order to continue the loan program, they are requesting a cash fund increase for the Assistive Technology Loan Fund in the amount of $1,500,000.
1:43 pm – Rep. Bruce Maloch is asking questions that clarified this situation. This “appropriation” for this program was part of the Arkansas Development Finance Authority (ADFA), but they decided to no longer adminstrate the Arkansas Assistive Technology Alternative Financing Program. Apparently the “appropriation” for this program was in the budget, but it is with an agency that is no longer adminstrating the program.
1:48 pm – Budget Classification Tranfer Requests for the Securities Department (State Operations) and the Public Service Commission (Tax Division) were reviewed without questions or comments.
1:52 pm – We are currently reviewing Miscellaneous Federal Grant Appropriation Requests. There are about 15 items most of which are 100% federal funded, apparently from the ARRA (Stimulus) Funds. [It is kind of scary how much we only sit by and watch the Federal government grow our State government. It is going to be very hard to trim these items once federal funding stops.]
1:56 pm – We are currently reviewing the items on part E of the agenda linked above. You can see the information we are looking at in the attachments also linked above.
2:08 pm – Back to the revenue report… The Net Revenue Availiable for Distribution is 8.8% BELOW last year. 2008-2009 was $1,552,340,595.98 but now for 2009-2010 is $1,416,040,188.85. However, there has been $61,049,112.00 transferred from the allotment reserve fund bringing the Adjusted Net Availiable For Distribution up to $1,477,089,300.85
2:21 pm – It appears that the tabacco tax is still raking in the cash, although it seems to be slowing. Revenue is up 44.0% over this time last year, but is behind the year to date increase of 56.3%. One interesting increase is that liquor tax revenues are up 27% over this month last year and 5% over this point in the year last year. Are tough economic times leading to higher alcohol consumption?
2:26 pm – Item F on the Agenda, Contracts Between State Agencies, was reviewed without questions or comments.
2:28 pm – We are currently reviewing the a Reallocation of Resources Requests from Southern Arkasnas University. They are moving $13 million from a variety of sources in their budget to build a building. Legislators are asking questions. We find it strange that they could make it through the last budget hearings without these items from being removed from their budget if it was not needed. I think legislators suspect that SAU padded there budget to the tune of $13 million dollars. [If nothing else this proves that if an goverment entity is motivated they can make SERIOUS cuts. This is the type of thing where we need to start to save taxpayers dollars and make government more efficient.]
2:36 pm – In order to allocate $13 million to a new building, SAU was able to cut $2,000,000.00 from salaries, $2,000,000.00 from “extra help”, $1,000,000.00 from Pers. Service Match, $4,000,000.00 infrom Operations, and $900,000.00 from Conference Fees and Travel with the remainder coming from data processing and professional fees. [This looks really fishy.]
2:41 pm – We are currently reviewing Emergency Transfer Requests. These are Miscellaneous Federal Grants – most of which come from the ARRA “Stimulus” Funds.
2:45 pm – I always love the end of long committee meetings, it is only time that Republicans outnumber Democrats in the active conduct of state business.
2:50 pm – Rep. Dismang is asking questions to insure that money that is allocated in a way that is planned rather than randomly used to ballon government. Part of a emergency transfer request was held until a detail budget is presented to the committee by DFA. This was the first time I have ever seen the normally quite cool and collected Tim Leathers visibly agitated.
2:57 pm – The Quarterly Report of Inter-Agency and Inter-Divisional Match Funds Transfer for the Department of Human Services for the Furst Quarter of FY10 was reviewed without question or comments.
2:59 pm – We are currently reviewing the items in item J on the agenda. This is the monthly reports concerning the General Improvements Funds, the Budget Stabilization Trust Fund, October Emergency Purchase Report, the Tobacco Settlement Report, and the State Central Services Fund Report.
3:01 pm – Rep. Maloch asked a question about Teacher Retirement. George Hopkins of the Arkansas Teacher Retirement System assured Rep. Maloch that there is no risk due to pass through funding.
3:04 pm – There were no further questions or comments. The meeting is adjourned.
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