OffTheMarble Commentary Summary on Arkansas Issues

Posted on January 30th, 2010

Listed below is what I consider my “Essential Stack of Stuff”. This list is my commentary and research on issues facing Arkansas.

Prison Overcrowding in Arkansas – Will Conservatives Ignore It Or Present Solutions?

Prison Overcrowding – A Conservative Solution

The Arkansas Budget & How The Game Is Played

Five Principles of Responsible Transportation Policy

The Cost of State Online Spending-Transparency Initiatives

Arkansas Fuel Taxes Highest of Any Surrounding State

Explosive Spending Growth by the State of Arkansas

Arkansas: Taxed Enough Already…

Growth in Government Employees in Arkansas

Five Conservative Ideas for State Level Healthcare Reform

My Take: Arkansas Highway Finance

Tax Creep, Liberal Creeps, and the Arkansas Middle Class

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Weekly Legislative Wrap-Up (a few days late)

Posted on January 20th, 2010

Last Friday, the Arkansas General Assembly’s Joint Budget Committee wrapped up its first week of budget hearings, ahead of the state’s first-ever fiscal session, which will begin February 8.  Directors of several state agencies, known as “the Big Six,” presented their budgets for fiscal 2011 to the committee, whose recommendation will now be used to draft the appropriation bills that will be voted on during the upcoming session.  However, before taking up agencies, the committee heard from Department of Finance Director Richard Weiss, who presented Gov. Mike Beebe’s revenue forecast and $4.48 billion general revenue balanced budget for fiscal 2011.

Richard Weiss

Given the current revenue shortfall, the Governor’s plan recommends suspending an increase in the pay plan for state employees, but the outlook is not all bleak. The forecast projects moderate growth, nearly restoring the state to revenue levels seen before budget cuts of July 2009.  “Also, we’re not having to use one-time money to balance the budget like we had to do for this year,” said Rep. Bruce Maloch, (D-Magnolia), co-chair of the Joint Budget Committee. However, in case the economy gets worse, the Governor proposes creating a $34.5 million reserve fund, to come from future revenue and to be used to fill in possible gaps. The legislature will vote on the recommendations in February.

As for agency budgets, the committee approved all executive branch recommendations, while acknowledging some minor adjustments will be made once the session is underway.  Though the Department of Education has seen an overall shortfall, for now, it can rely upon money set aside from public school fund balances, and will have sufficient appropriation to continue funding programs necessary to guarantee school adequacy, as required by the state Supreme Court.

Gov. Beebe’s proposal for state colleges and universities calls for a $17.2 million increase in general revenue for higher education in fiscal 2011 over fiscal 2010.   However, the committee recognized there will be some tweaking of the appropriations during the session.

The Arkansas Department of Correction (ADC) and Department of Community Corrections (DCC) are also impacted by falling revenues, but given the state’s constant struggle to maintain adequate prison space, ADC told legislators it will search within its budget for money to open at least some new beds at its facility in Malvern.  The governor also proposes using $6.2 million in one-time money to reimburse counties for housing state prisoners.

Health Department leaders told legislators their budget can support the continued implementation of a statewide trauma system, though it may be slowed by the decrease in revenue.  Medicaid is a major concern in regard to the Department of Human Services budget, though there are no plans to cut services. “Medicaid and the Medicaid Trust Fund remain sound for fiscal year 2011. However, because of increased demands on the Fund, the Agency is studying possible changes for future years and will be closely monitoring any federal health care legislation to determine its impact on Medicaid,” said Maloch.

“The first week of hearings went as planned. There was good discussion by the members, and  the agencies addressed many of our questions,” Maloch said.  Hearings will likely last one more week, as the Joint Budget Committee reviews budgets for the State Library, Department of Workforce Services, and the Department of Higher Education’s agency budget.

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Joint Budget Committee – January 12, 2010

Posted on January 12th, 2010

Date & Time: Tuesday, January 12, 2010 at 9:00 AM
Location: Room 171, State Capitol
Committee Information: Members on Committee
Agenda and Attachments

Budget Materials:

• Arkansas Public Higher Education Operating Recommendations FY10-11 Volume 1: Universities
  
• Arkansas Public Higher Education Operating Recommendations FY10-11 Volume 2: Colleges
  
• Arkansas Public Higher Education Personal Services Recommendations FY10-11
  
• Arkansas Public Institutions of Higher Education Appropration Requests (including Legislative Recommendations) FY10-11
  
• Arkansas Four Year Institutions of Higher Education Non-Classified Personal SErvices Requests (including Legislative Recommendations) FY10-11
  
• Selected Statistical Financial Data
  
• Arkansas Legislative Tax Handbook
  
• Summary of Expenditures and Construction Expenditures for State Agencies and Institutions for Fiscal Years 1998099 through 2007-08
  

The Joint Budget Committee provides for consideration of appropriation bills and budget proposals submitted by the General Assembly. The Joint Budget Committee is authorized to meet during the interim to work on budgetary and other matters. When the Legislative Council holds pre-session budget hearings after October 1 (preceding the next regular session of the General Assembly) all members of the Joint Budget Committee appointed to serve at the next following regular session are authorized to attend. (A.C.A. 10-3-509)

9:03 am – The meeting called to order by Rep. Bruce Maloch and Sen. Gilbert Baker. Rep. Maloch said that we are now plowing new ground. This it the first time that budget hearing have been held at this time of the cycle.

9:04 am – [There is an interesting dynamic going on with the budget hearings that we have never had before. This is the first time the same group of legislators will be voting on the budget as are involved in the budget hearings. Usually the budget hearings are heard by third term members who will not be participating in the session.]

9:06 am – Sen. Gilbert Baker is asking that legislators do the hard work now so that we can have a quick efficient session.

9:08 am – We have a large stack of essential stuff on our desks this morning. Hopefully I can find this information online that I can link to.

9:09 am – BLR Staff is current covering the pre-fiscal session budget hearing parameters. You can view that information in the Attachments. Also covered in that attachment is the Budget Hearing Special Rules.

9:18 am – The Budget Hearing Special Rules were adopted by the committee by a voice vote. No audible objection.

9:21 am – Mr. Kim Arnell is currently reviewing how to read the budget manuals and describing the features.

9:23 am – [It looks like the current budget materials are not current. These we currently have appear that they do not reflect the recent $106 million in cuts.]

9:28 am – The manuals above that are labeled (including Legislative Recommendations) appear to have updated information.

9:35 am – Senator Glover is asking about if there is going to be a difference between the legislative recommendations and the Governor’s recommendations.

9:38 am – Richard Wiess is presenting the revised economic forecast (second edition) .

9:39 am – The net available general revenue forecast for FY 2010 will be reduced by $106 million, equivalent to a 2.4 percent reduction. Therefore, effective January 11, 2010, the new funding level for 2010 is $4,302.77 million or 95.64% of A.

9:41 am – They are still predicting a 4.1 percent growth for FY 11. [I really don't understand the constant and ongoing hyper-optimism by DF&A.]

9:45 am – Sen. Steele asked how much is left in the “rainy day fund”. The answer is about $32 million. He followed up with a question if there would be any job cuts. The answer was that there will be no reductions in the state workforce.

9:47 am – 95.6% of “A” category appropriations will be funded. There is discussion that increases in the pay plans will be suspended.

9:49 am – The Governor is directing growth revenues into the balanced budget revenue reserve fund, also known as the rainy day fund. I don’t think that most of the members of the legislature fully realize the consequences of that yet, otherwise they would be howling. You see… if the surplus revenues go to the revenue reserve fund, then they don’t go into the General Improvement Fund.

9:55 am – Senator Percy Malone is asking why any surpluses would not be applied to those areas that have previously been cut. He also wanted to know what happens to the surplus revenue stream once it goes above the predicted $32 million difference. [I think that this would essentially mean that the Governor will have consolidated control of 100% of surplus revenue and left the legislature with empty General Improvement Fund coffers.]

10:04 am – Senator Johnny Key is asking questions to determine how the forecasts were determined and how much confidence we can have in the forecasts that DF&A uses from “Global Insight”. Of course, they have to say they are confident but they did note that everything has been volatile lately.

10:08 am – Sen. Percy Malone voiced his opinion that he doesn’t see anything that would indicate 4% growth. He is pointing out that to have a 7% swing from 3% down to 4% up. He is struggling to find a way to ask the question that gets the information that DF&A doesn’t want to say. Sen. Malone is an experienced legislator, when guys like him start digging, it is because they know there is some information there somewhere that he needs to know but isn’t being told.

10:15 am – Sen. Miller is asking about the Governor’s proposal. He is asking if the language of the proposal means that the Governor would control these funds without approval of Legislative Council. Richard Wiess hedged his answer saying that it will be according to what we allowed him to do. Sen. Miller is asked about the 25% of the previous one time money, asking if the Governor was using that too. Apparently the answer is yes.

10:20 am – Both of the Budget Committee Chairmen started asking clarifying information. I think the questions that both ask has less to do with not knowing the answer, but so members of the committee would have the answers they needed to know.

10:25 am – Rep. Pennartz is asking what portion of the Governor’s surplus funds is remaining. The Governor has $113 million but there was no requirement that 25% would be retained like the legislature’s. Rep. Pennartz has determined that the Governor still has about $94 million remaining.

10:31 pm – The meeting has adjourned for lunch and will reconvene at 1:00 pm.

1:06 am – The committee has reconvened. We are currently reviewing infromation in Higher Ed. Operating Recommendations.

1:18 pm – Alot of this information currently being covered are difficult to describe without being able to reference to the documents that we are looking at.

1:35 pm – State higher education funding per student full-time equivalent is declining. The state funding covers less than half of the cost. If state support is reduced, the student’s burden is increased.

1:37 pm – The lottery revenues change who pays the cost of college, it will not impact the higher education budgets. [Except for the fact that it may increase enrollment which could impact the budget from both positive and negative ways. Increased enrollment means increased revenues but also increased need for educational infrastructure.

1:39 pm – Several higher ed. institutioins were financially unable to fully implement the pay plan because 1) half the pay plan was to be paid from A funds and the other half from B-1 funds which were cut due to budget shortfalls, 2) the legislature ultimately decided to take $11 million from B-1 and replaced it with Stimulus money but Stimulus funds cannot be used for continuing obligations such as pay raises.

1:44 pm – Other funding for higher ed comes from the Allotment Reserve Funds for $17 Million. Since there is not assurance that the Allotment Reserve Funds will continue to be available, therefore these funds cannot be used for continuing obligations such as pay raised.

1:47 pm – I just saw Representative Les Carnine who grew a goatee over the holidays. He now bears a striking resemblance to Ed Rollins.

1:53 pm – The Arkansas Higher Education Coordinating Board recommended the state portion of the 2.3% COLA, $7.6 million for initiatives that have been funded from grants and/or General Improvement Funds are not covered by the funding formula, $0.5 million to match Federal Land Grant Funds increase. The total request for new funds is $20,148,122.

1:59 pm – The “non-formula” additional fund recommended are 1) the Arkansas Delta Training and Education Consortium (ADTEC)/Arkansas Delta Workforce Innovations for Regional Economic Development (ADWIRED) and the Crossroads Coalition ($3.2 million), 2) ASU Arkansas Delta Heritage Centers ($2.1 million), 3) UALR Nano-Technology Center ($2.3 million), and 4) UAPB Federal Land Grant Matching Funds ($0.5 million)

2:03 pm – Ultimately what this means is that higher education institutions will be seeking tuition increases. Legislators have been asking questions on how cuts can be made without increasing tuition. Some legislators have suggested that by not providing raises that tuition increases could be avoided. The pushback was that the salaries are lower in higher ed in Arkansas than in other SREB states. It was also pointed out that tuition rates are lower than other SREB states.

2:15 pm – Rep. Steve Cole, who is also a vice chancellor of a small Arkansas college is pleading the case for prioritizing funding for the smaller colleges. He made a compelling case, but like everything else it will be put within the context of all the obligations of the state.

2:28 pm – We are currently reviewing Arkansas Public Higher Education Operating Recommendations FY10-11 Volume 1: Universities. As you can see I found a link to the manual. I have also linked it at the top of this page for easy future reference.

2:41 pm – Rep Bruce Maloch, house co-chair, made a motion to adopt the legislative recommendations with a few exceptions recommended by the AR Higher Ed Coordinating Board.

2:45 pm – This whole process is odd, this motion is for appropriations that do not actually take into effect they economic downturn. Appropriations are actually fair higher than actually get funded through the Revenue Stablization Process. Appropriations only limit the maximum amount that can be spent, and are not determinative of how much is funded.

2:49 pm – Agenda completed for today. We will meet again tomorrow.

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Arkansas Legislative Council: Adminstrative Rules and Regulations – January 11, 2010

Posted on January 11th, 2010

Date & Time: Monday, January 11, 2010 at 9:00 PM
Location: Room 151, State Capitol
Committee Information: Members on Committee
Agenda
Last meeting

This committee reviews matters regarding administrative rules and regulations by state agencies, boards, and commissions for Legislative Council review, as required by A.C.A. 10-3-309; and such other matters pertaining to administrative organization, rules, regulations, and procedures as may be assigned to the committee by the Legislative Council.

9:04 am – The meeting was called to order by Sen. Percy Malone.

9:05 am – Item B on the agenda was passed over.

9:07 am – Revisions to the Rules and Regulations for the Arkansas Auctioneers Licensing Board were presented by Ms. Kristy Arnold. Sen. Malone asked if there were any fee increases. The response was that there were not. These new rules primarily deal with electronic auctions.

9:08 am – Mr. Bill Trice with the State Board of Dental Examiners presented Article XVIII; Mobile Dental Facility Regulations. Rep. Billy Gaskill, who is a retired dentist, asked several questions about who is served primarily and if all people could be served. The primarily group targeted are those under financial distress, but may serve all people. Senator Malone is asking about the regulation and limits on the type of care to provided with reference to anesthesia. Mr. Trice explained that those regulations are in these new regulation. Sen. Malone asked for a specific reference to that limitation. Mr. Trice explained that it is not in this particular regulation, but is the result of other regulation and works with this one. Rep. Gaskill provided explainatory commentary and praised this type of work for children.

9:16 am – Rep. Johnnie Roebuck asked about how follow-up care is provided. Mr. Trice said they have to have follow-up care arranged, either by another local dentist, Childrens Hospital, or a scheduled return visit and they have to provide that information to the board.

9:18 am – Sen. Malone is making alot of pushback to Mr. Trice about the need to provide a prearrangement with a local dentist for follow-up treatment. Rep. Johnnie Roebuck is also asking alot of questions asking about what work was done with the Dental Association to create this rule. Rep. Roebuck’s husband is a dentist. [I don't know if I understand what Sen. Malone is going after with his questions, but I suspect he has had some negative reaction from his consituents who are rural local dentists.] Mr. Trice said that the Dental Association was “on-board” with these rule changes.

9:23 am – We returned to item B on the agenda to review of the report on the promulgation process for rulemaking by the State Board of Public Accountancy on the board’s proposed amendments to Rules 6, 7, 10, 12, 14, and Rule 1. This was held up due to a fee increase put in place. Apparently they have now removed the fee increase. Sen Malone is lecturing the the board representatives about the rule making procedure and the need to contact the press when a meeting between board members occur.

9:30 am – The representative for the State Board of Public Accountancy is being questioned about her previous testimony in the last meeting. There is apparently some conflict in her testimony from the previous meeting about he procedure that was followed. Sen. Malone actually had her previously transcribed and read back to her. Apparently there was only one board member at the time due to a vacancy on the board. Therefore, apparently there were not two or more (required for press notification) board members were not present when the discussion of the public comments for the new rules were handled.

9:36 am – Sen. Malone asked for information about the responsibility of board members once there term has expired from the Attorney General’s office. We were informed that one a person’s term has expired they are not and often to not continue attending the meetings until their replacement is appointed.

9:38 am – We are currently covering the rules related to the rules from the Dept. of Education about the access to public school information on comprehensive school improvement plans. Apparently, in the public comments it was requested that the rules be amended to require a link to the most recent version of the information. The report stated that, “No changes were made as a result of this comment.” Apparently, changes were, in fact, made and the change was made to the proposed rules.

9:43 am – We are currently discussing the rules related to professional development. This covers teacher training related to accomodate lottery scholarships and the use of AEDs.

9:46 am – Representative Randy Stewart is asking about a rule change related to the requirement to get a “sworn statement” from a doctor to miss a training. She says that it means just a doctors excuse. There is a definite difference from a legal standpoint. [This is one way the bureacracy creeps in it's power. They put into place oppressive rules that go further than the law created by the legislature, when they testify before the legislators about rules implemented they claim that certain terms mean the same thing, but the legal meaning in actually goes far beyond legislative intent.]

9:51 am – Sen Percy Malone voiced his displeasure saying that he didn’t care for them making law over there and that they should stick to their knitting. [Situations such as this is why one of the most important duty of legislators is to oversee the rules created by the agencies.]

9:55 am – As a member of the Education Committee, I specifically remember this coming through. The law never intended anything other requiring the total number of 60 hours of professional development hours. There was never any intent to require anything but a teacher demostrate an extended period of illness if they could not get the professional development over the year. The local school district should have the ability to wave or make up missed training.

10:01 am – Rep. George Overby asked if they would take control from the local school board. The Dept. of Education response was “no”. I get the feeling that most of the legislators feels like the Dept. of Ed is being rather non-responsive and dismissive of the legislators concerns.

10:03 am – Sen. Kim Hendren voiced the result of un-intended consequences in the creation of these rules and regulations.

10:04 am – The attorney for the Dept. of Ed voiced that they would adjust the rule to reflect the preferences of the legislators.

10;07 am – We are now covering the methods of calculations of school miscellaneous funds.

10:08 am – Off topic… whisper moving through the committee room that the Governor is recommending an $106 million cut to the the state budget.

10:11 am – Paul Stricklin is reporting on the rules for the Arkansas Emergency Telephone Services Board. This board is the one that administers the 65 cent fee on cell phone to provide 911 services to cell phones.

10:13 am – Karen Bassett from the Dept. of Enviromental Quality is back concerning Regulation 33; Motor Vehicle Racing Facility Regulations. This was held until staff could determine if anyone was inadvertantly affected by that regulation. There was not.

10:15 am – Regulation 18; Air Pollution Control Code was reviewed. This related to open burning. Regulation stands reviewed.

10:16 am – Things are moving faster than I can keep up with now. This often happens toward the end of committee meetings.

10:17 am – Ryan Benefield of ADEQ presented Regulation No. 23; 2009 Hazardous Waste Management Annual Update. Rule stands reviewed.

10:18 am – We passed over item 8 on the agenda.

10:19 am – Robert Hart with the Dept. of Health, Center for Local Public Health, Engineering Section is presenting a new rule related to backup power for Public Water Systems. Sen. Malone asked if there were deficiencies that prompted this rule. Mr. Hart denied that there were. Sen. Malone replied, “Then why are you making a new rule then if the existing one is working?” [Darn good question] Mr. Hart claimed that just makes the rule clearer. He is explaining that the language became outdated since it was created in the 1990s. The rule changes are supposedly just clean up language.

10:26 am – Apparently this new regulation requires that the water systems has stand-by power or other means for maintain water pressure during a power outage. The rule stand reviewed.

10:28 am – We are returning to item 8 on the agenda. Byron Freeland with the Dept. of Finance and Administration; Arkansas Racing Commission is presenting a raft of rule changes. See the agenda.

10:30 am There is a ton of stuff left on the agenda, but I have to head over the the Board of Directors meeting for the Science, Technology, Engineering, and Mathematics (STEM) in Education Coalition. The stuff toward the end of the agenda is usually routine, so it probably would have been pretty boring anyway.

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Pre-Filing Begins For Fiscal Session Legislation

Posted on January 7th, 2010

From The House Communications Office: The first-ever fiscal session of the Arkansas General Assembly begins Monday, February 8. However, next week marks an important first step in preparation for the session, as appropriation bills and concurrent resolutions may be pre-filed beginning Monday, January 11.

In the House of Representatives, the pre-filing process is simple and efficient. To minimize the possibility of error, the sponsor hand delivers the legislation to the Chief Clerk. Each bill, drafted by the Bureau of Legislative Research, has a barcode that is scanned, assigning the bill a number. Upon scanning, the legislation is automatically posted to the General Assembly’s Website, under “Recently Filed Bills.” The full text of the bills and resolutions will be available to the public on the day they are filed.

Also next week, Joint Budget Committee members will conduct pre-fiscal session budget hearings beginning Tuesday, January 12. The committee will initially review and recommend action on appropriation measures for the Department of Education Public School Fund Account, Department of Human Services, Department of Health, Department of Corrections, Department of Community Corrections, Department of Higher Education, and the Arkansas State Library. Appropriations will be for the state’s next fiscal year, which begins July 1, 2011. The committee’s deliberations will continue after the session convenes.

FISCAL SESSION FACT SHEET

• In November 2008, 69% of Arkansas voters approved legislatively referred Proposed Constitutional Amendment 2, which became Amendment 86 to the Arkansas Constitution.
• Amendment 86 reduces the period for which appropriation bills are valid from two fiscal years to one, requiring the General Assembly to meet in a fiscal session during even-numbered years, with deliberations limited to action on appropriation bills.
• Each fiscal session will begin the second Monday in February of even-numbered years (Monday, February 8, 2010), and shall not exceed 30 days.
• The fiscal session may be extended one time, however, for no more than 15 days, by a 3/4 vote of both the House and the Senate.
• In order for non-appropriation legislation to be introduced, a concurrent resolution substantially describing the bill must be approved by a 2/3 vote required in both chambers.
• A concurrent resolution to allow a non-appropriation bill may be pre-filed along with other legislation beginning Monday, January 11, but must be filed no later than Monday, February 8, (the first day of the session).
• If a concurrent resolution is approved by 2/3 of the House and the Senate, the non-appropriation bill referenced in the resolution must be filed no later than February 22, 2010, (the 15th day of the session).
• If the bill is an appropriation bill, it too must be filed no later than February 22, 2010, (the 15th day of the session), however, requires no concurrent resolution.
• Two non-appropriation bills are expected to be introduced for consideration. The Revenue Stabilization Act is not an appropriation bill, but it funds General Revenue budgets and must be addressed to govern state spending in the next fiscal year.
• Lawmakers are also expected to consider legislation establishing award amounts for lottery scholarships. This will be a non-appropriation bill that effectively functions as one, and is essential to ensuring net revenue generated by ticket sales from the voter-mandated Arkansas Lottery is passed on to students who qualify for scholarships at Arkansas’s two-year and four-year colleges and universities.
• Both the Revenue Stabilization Act and the Lottery Scholarship bills must be authorized by concurrent resolutions.
• In the spirit of a limited and cost-efficient fiscal session, the House intends to follow certain procedures. Those include Mondays being reserved for committee meetings of the Joint Budget Committee, the Rules Committee, and other House committees desiring to consider issues limited only to bills which were withdrawn by the author during the Regular Session for the purpose of further study.
• The House will convene at 12 p.m. on Monday, February 8. At 12:30 p.m., the House and Senate will convene in Joint Session.
• Regular course of business calls for the House to convene at 1:30 p.m. on Tuesdays, Wednesdays and Thursdays for action on bills referred by committee. Fridays will be reserved for Members to attend to constituency service.
• Further streamlining of fiscal session activities will include eliminating the consideration of simple resolutions; no ceremonial presentations will be conducted on the House floor; no House tours will be conducted, and no House pages will be used during the session.

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Committee on Performance Evaluation and Expenditure Review (PEER) – January 7, 2009

Posted on January 7th, 2010

Date & Time: Thursday, December 7, 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.

1:33 pm – Meeting called to order by Sen. Bryles. The first order of business is the December 2009 Revenue Report.

1:34 pm – After the revenue report was read… stunning silence. It is bad. Net Available for Distribution is down 4.2% Revenues are $55 million under the forecast adjusted on 10/20/2009. At that time, the forecast was $89 million under forecast from the session last spring.

1:37 pm – Corporate income tax collections are down 51.2% from the same month last year. Cigarette tax revenues are up 55.6% for the same period.

1:40 pm – Individual income tax collections are down 15.7%

1:41 pm – Budget hearing start next week, I think there will be alot of discussion about this at that time.

1:43 pm – Currently reviewing Cash Fund Appropriation Increase Requests. The one by the Department of Education generated questions related to the impact of the desegregation lawsuit results and how it will impact the schools. The current offer for settlement is for $430 million over 7 years.

1:47 pm – The Budget Classification Tranfer Request for the Arkansas Public School Computer Network was withdrawn by the Department of Education. They are delaying the purchase due to the software will no longer be supported after 2015. Sen. Malone is asking that because this DIS service is a cost recovery operation, how it can really be a realized savings for the purposes of a classification transfer. They explained that an additional reason for withdrawing the request is because of anticipated budget cuts.

1:52 pm – We are currently covering Federal Grant Appropriation Requests for FY10. A lot of these appropriations are pass through for the ARRA (Stimulus) Funds.

2:13 pm – There are alot of questions about the Arkansas Wireless Information Network upgrade from 7.2 to 7.5. This discussion was spurred by a pass through appropriation request from a federal grant.

2:15 pm – Rep. Dismang is asking about the Community Development Block Grant (CDBG) Disaster Assistance. He is asking if this can be done much quicker than the past grants have occured. He has experienced a lot of questions from constituents concerning how long it took to get the grants from the first flood.

2:27 pm – A lot of jumping around asking questions about the items for part E of the agenda. Most of the questions are informational with legislators seeking to understand the processes involved and how these grants are administered. The senior legislators like Sen. Bryles have been very patient with these sort of questions because they are critical in the era of term limits for legislators to understand what is going on. It does cause the meeting to go long and at times get off track, we learn a lot during times.

2:40 pm – Legislators again asking the questions to learn if the programs and the positions created by the Stimulus Funds will continue after the funds terminate. Again, we are being told that they will. It doesn’t seem that most legislators believe it.

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