ALC - PEER
[Source]
Committee
ALC - PEER
Location
Mac, Room A [ASR]
Date & Time
Feb 17, 2026 • 10:00 AM
Duration
57m 48s
The meeting began with a moment of prayer in memory of Reverend Jesse Jackson. The Chair confirmed a quorum and proceeded with the agenda.
The committee discussed a temporary appropriation request from the Department of Labor and Licensing for $273,000 to cover administrative costs for their enterprise licensing platform, which was approved without opposition.
Next, the committee reviewed appropriation requests related to the Infrastructure Investment and Jobs Act. The Department of Transportation requested $280 million for the final quarter of the fiscal year, supported by a report on obligated projects. The Department of Commerce requested $195 million for broadband infrastructure grants as part of the Arkansas BEAD program, with 15 Internet service providers seeking $126 million to serve over 51,000 locations. Representative Kavanaugh raised questions about fund accountability and the status of unlisted providers. Glenn Howey, the State Broadband Director, assured that no providers had requested contract amendments and that a risk plan would ensure accountability through milestone disbursements. The committee approved both requests without opposition.
In reviewing appropriation and fund transfer requests, the Department of Correction sought a transfer of $458,000 to the Tucker Union Water Treatment Plant, while the Department of Education requested a $25 million transfer for various programs, including $15 million for declining enrollment. The Department of Shared Administration Services requested $229,000 for salaries at the project management office. The committee approved these transfers after addressing questions about the distribution of declining enrollment funds, confirming that 152 districts were on the preliminary funding list.
The allocation of a $15 million fund for school districts was discussed, focusing on how funds are divided based on average daily membership (ADM) calculations. Current public school funding is $23 million, with projections indicating a need for an additional $10 million due to increased spending on declining enrollment. The funding aims to support districts facing declining enrollment, allowing them to stabilize financially. Questions about the duration of fund eligibility were raised, noting that even a minimal decline in enrollment could trigger eligibility.
The committee also reviewed a loan request from the Department of Shared Administrative Services for $4.7 million to implement a new IT service management platform, expected to yield cost savings. Additional appropriation requests included $200,000 for the Department of Labor and Licensing for wage and hour claims, $15 million for unclaimed property claims, and $8,000 for a cultural center program grant. A federal grant of $1.1 million for the College and Career Coaches Program was also discussed.
The committee reviewed pay plan appropriation requests totaling $3.8 million for salary adjustments and discussed formatting changes to budget manuals for the upcoming biennium.
Concerns were raised regarding the Medicaid trust fund, which has declined from $660 million to $394 million over seven months, with projections suggesting further decreases. The discussion emphasized the need for ongoing monitoring of expenditures and potential federal funding impacts. The trend of spending down the trust fund was noted, with a consensus that additional capital would need to be injected, although no specific recommendations for an ideal ending balance were provided.
Concerns about potential changes to Medicaid rates and the impact of new legislation on expenditures were discussed, with no immediate health crises expected to increase costs. The importance of managing cash inflow and outflow was emphasized, particularly regarding new federal funding that cannot be used for rate increases but can support cost-reduction initiatives.
The meeting concluded with a reminder of the need for ongoing discussions about the trust fund and its utilization, particularly concerning revenue and expenditure timing. Members expressed appreciation for collaborative efforts to address critical health concerns, especially in labor and delivery, and the meeting was adjourned without further questions.
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