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This week in Arkansas, legislative discussions primarily revolved around extensive financial audits, state contracts and appropriations, Medicaid program oversight, efforts to combat financial fraud, and law enforcement accountability.
- Extensive Financial Audits and Mismanagement: The Legislative Joint Auditing Committee on February 13, 2026, and the LEGISLATIVE JOINT AUDITING- COUNTIES AND MUNICIPALITIES committee on February 12, 2026, reviewed numerous reports highlighting significant financial irregularities. Issues included unauthorized disbursements from the Claiborne County library, leading to criminal charges, and scholarships awarded to ineligible students at the Charles W. Donaldson Scholars Academy at the University of Arkansas Little Rock. Repeat findings were noted at Northwest Arkansas Community College and West Memphis School District. Within state agencies, the Department of Human Services reported improper benefit payments and unauthorized purchases, while the Department of Parks, Heritage and Tourism had issues with lost receipts and change funds, and the Department of Corrections faced unauthorized fuel card purchases. At the local level, municipalities like Gum Springs and Denning were given 60 days to address substantial non-compliance with municipal accounting law, and the city of Elaine had questionable purchases by its fire chief. An investigative report on the Faulkner County Fair Association revealed questionable disbursements totaling $21,741, undocumented cash withdrawals, and inadequately documented cash payments to a carnival vendor. Many of these findings were referred to prosecuting attorneys and the Attorney General.
- State Contracts, Grants, and Appropriations: The ALC – REVIEW committee on February 17, 2026, extensively reviewed contracts and grants across state agencies and educational institutions. Notable items included an $888,000 contract for waste tire management, which was held due to concerns about an unapproved business plan. The committee approved various methods of finance for university renovations (ASU Mid-South, Arkansas Tech) and a new multi-purpose arena at the University of Central Arkansas (estimated at $75.5 million). Several discretionary grants from the Department of Human Services (aging, substance abuse, youth services) and the Department of Health (maternal health, hospital support) were approved. Key contracts included a new $5 million contract for security and privacy assessment services for Medicaid Enterprise module systems, and various agreements for skilled nursing services, environmental services, and waste removal for DHS. A ratification request from the University of Arkansas for Medical Sciences (UAMS) for Family and Medical Leave Act outsourcing services, involving over $250,000 in payments and outstanding invoices, raised concerns about oversight. The ALC – PEER committee also on February 17, 2026, approved significant appropriation requests, including $280 million for the Department of Transportation for Infrastructure Investment and Jobs Act projects and $195 million for the Department of Commerce for Arkansas BEAD broadband infrastructure grants.
- Medicaid Program Oversight and Policy Adjustments: Medicaid was a consistent topic, with the Legislative Joint Auditing Committee’s Medicaid Subcommittee meeting on February 12, 2026, for the first time since 2018, to review the roles of various agencies and receive presentations from the Department of Human Services and the Office of Medicaid Inspector General. Audits revealed improper benefit payments within the Medicaid Program. The ALC – REVIEW committee approved a $5 million contract for security and privacy assessment services for the Medicaid Enterprise module systems. Additionally, the ALC – ADMINISTRATIVE RULES committee on February 19, 2026, approved a Department of Human Services rule amending the Medicaid rehab hospital manual to allow psychiatric units in rehab hospitals and a recovery audit contractor exemption rule. There was also discussion in the ALC – PEER committee on legislative responses to adjust Medicaid rates for labor and delivery services to prevent the loss of delivering units across the state.
- Combating Financial Fraud and Protecting Consumers: The Insurance and Commerce – Joint committee on February 13, 2026, focused on the rising threat of financial fraud, particularly affecting seniors, small businesses, and working families. Lori Trogdon, CEO of the Arkansas Bankers Association, reported 4,238 fraud incidents in Arkansas in 2024, resulting in $51.8 million in losses, with cryptocurrency scams and seniors aged 60 and above being heavily targeted. The committee discussed common tactics like spoofed bank communications and fake job postings, emphasizing the need for education, awareness, and legislative measures to hold telemarketing companies and social media platforms accountable. Shameka Johnson from the Attorney General’s Office shared insights on consumer protection efforts, including the Financial Fraud Task Force, which reported $1.6 million in losses over the past year.
- Law Enforcement Accountability and Public Safety Legislation: The ALC – Game – Fish-State Police committee on February 18, 2026, discussed the impact of recent legislation that elevated fleeing from law enforcement to a Class D felony. Colonel Mike Hager of the Arkansas State Police reported a 29% decrease in pursuits from 2023 to 2025, attributing this to the new law and increased trooper presence. He noted an increase in prosecutions for these offenses. The committee also discussed the decertification process for law enforcement officers, with 90-95% of decertifications related to integrity issues such as lying or failing to disclose information, and an increase in decertification requests due to improved communication and education.
Sources:
AR Legislative Joint Auditing (2026-02-13)(video)
AR ALC – REVIEW (2026-02-17)(video)
AR ALC – PEER (2026-02-17)(video)
AR LEGISLATIVE JOINT AUDITING- COUNTIES AND MUNICIPALITIES (2026-02-12)(video)
AR ALC – ADMINISTRATIVE RULES (2026-02-19)(video)