Joint Budget
Feb 7, 2023
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Sen Dismang Members, first up, we have a report from Audit in regards to the used tire program. I do think we have Audit here to make a few comments, and then we’ll be happy to take any questions on that program and the findings. We also have ADEQ, who can also help with any questions you may have. Okay guys, if you could just introduce yourself to the committee and you’re welcome to proceed.
Used Tire Program audit report
Bullington Leg Audit Thank you. Mr. I’m Tom Bullington, Legislative Audit. With me today is Charlie Camp from Legislative Audit as well. The report you have in front of you, one that was requested back in the fall time, there were several legislators interested in this subject matter. So we did some work looking at ADEQ and how they process the waste tire fees and looking at the districts and see how they use those fees that they’re receiving from ADEQ. And so the report you have in front of you is kind of the results of our review. This will also be presented to the Legislative Joint Audit Committee at a later date after session ends. So if there’s any questions, we didn’t come with a formal presentation today, but if there’s any questions, we’d be happy to try to answer them.
Sen Dismang Thank you. Representative Wooten, and if we can go ahead and have ADEQ just to make sure if there’s any questions that we need to kind of go back and forth on, come to the table. All right. If you could just introduce yourself for the committee and then I’m going to go to Representative Wooten for a question.
Osborne ADEQ Good morning. I’m Caleb Osborne I’m the DEQ director and chief administrator of the environment.
Taylor ADEQ Good morning. Bailey Taylor, Associate Environment Administrator.
Sen Dismang All right, thank you. Representative Wooten, you’re recognized.
Rep Wooten Thank you, Mr. Chairman. I direct your attention to page 8. First paragraph. Anytime I receive a report from y’all that reads, in conclusion, tire program will be referred to the 6th and 17th Judicial District Prosecuting Attorneys, respectfully. And then you reference notes one, two and three. And as I read through there, I read things like, from an accountability standpoint, this practice made no sense to the district. Consequently, the district continued to attach the quarterly district financial statement. And then there’s this statement several times. The district will immediately discontinue this practice capital fund and continue to work with Davis to further streamline. We’ve got a mess. I mean, when you start talking about referring it to a prosecuting attorney, that’s a mess.
Camp Leg Audit Well, the practices they were using were contrary to Article 12, Section 5 of the Constitution. And what they were doing was when they were filling out their TAP reports, they were putting full amount of revenue regardless of what they received and their expenditures. And whatever the difference between the revenues and expenditures were, they were writing a check and crediting that to a capital fund from which they were paying for some of Davis’ maintenance and repair expenditures.
Rep Wooten And Davis is a provider of transport.
Camp Leg Audit Davis is a contractor.
Rep Wooten Picking up the tires and hauling them to–
Camp Leg Audit They pick them up and process.
Rep Wooten So there was a conflict of interest between the program and Davis? I mean, I’m trying to figure out exactly what kind of a situation we’ve got here and how quickly you think the prosecuting attorneys are going to move on this. Have they said anything?
Camp Leg Audit Well, as far as or to my knowledge, we have not received anything back from the prosecuting attorney.
Rep Wooten When did you refer to them?
Camp Leg Audit It was referred– when did we release this? 1st of January was when this was released.
Rep Wooten How many years had this gone on?
Camp Leg Audit The capital fund is pretty recent, within the last year or so. But they have had the contract with Davis Rubber since inception.
Rep Wooten Thank you, Mr. Chairman.
Sen Dismang Members, do we have any other questions? All right. Thank you very much for your time this morning. Members, that’s going to take us to– we’re going to go ahead and just jump to Section D, the governor’s letters. We have three sets of those. And Kevin, you’re recognized.
Governor’s Letters (financial requests)
BLR Staff Thank you, Mr. Chairman. So this is Governor’s Letter Number 2. This is item D1 on your agenda. Governor’s Letter Number 2 at the top right hand corner. This is a request for supplemental appropriations for the next fiscal year– I mean, for the current fiscal year. As you can see on the fourth page, it’s labeled page 1. This is a summary of the bills that will be requested for your staff to draft. And once these bills are drafted, they will come to the committee for the committee to consider whether they do pass or not. This is for appropriation only on all these supplemental requests. There is no new revenue requested.
Sen Dismang Members, do we have any questions on Governor’s Letter Number 2? Again, these are just appropriation only. All right. Seeing none, I have a motion to adopt. I have a second. Is there any discussion? Seeing none, all those in favor signify by saying aye. All those opposed? Motion carries .Governor’s Letter Number 3. Yes. 3.
BLR Staff Yes, sir. Governor’s Letter Number 3. This is also a governor’s request for appropriations for various infrastructure projects for the coming biennium. This is to ensure sufficient appropriation is able to continue projects. These are called our re-appropriation bills. Again, adoption of this letter will allow your staff to draft all of these bills that will then be referred to this committee.
Sen Dismang Members, do we have any questions on Governor’s Letter Number 3? Again, this is reappropriation for projects. Seeing none, I’ve got a motion to adopt. I’ve got a second. Any discussion? Seeing none, all those in favor signify by saying aye. All those opposed? Motion carries. Governor’s Letter Number 4.
BLR Staff Thank you, Mr. Chairman. Governor’s Letter Number 4 is very similar, except for this is a request by the Governor for recommendations for appropriations to be drafted for capital projects for the coming biennium.
Sen Dismang Members, do we have any questions on the capital projects appropriations? Seeing none, I’ve got a motion to adopt. I’ve got a second. Is there any discussion on motion? Seeing none, all those in favor signify by saying aye. All those opposed? Motion carries. And we’re going to circle back to S, the Senate. All right. The Senate bills. And we’re going to be on page 3 first.
Appropriation bills
BLR Staff Thank you, Mr. Chairman. So yes, on page 3, Senate Bill 25, Arkansas Geographic Information Systems office is ready, Mr. Chairman.
Sen Dismang Members, do we have any questions on Senate Bill 25? Any discussion? I’ve got a motion do pass. I’ve got a second. All those in favor signify by saying aye. All those opposed? Motion carries. Senate Bill 27. Same page.
BLR Staff Thank you, Mr. Chairman. This is Auditor acts a the Disbursing Officer for continuing education of local officials appropriation.
Sen Dismang All right thank you. Members, do we have any questions on Senate Bill 27? Any discussion? Seeing none, I’ve got a motion to adopt. I mean, I’ve got a motion do pass. I’ve got a second. All those in favor signify by saying aye. All those opposed? Motion carries. And it’s going to be page 12, Senate Bill 65.
BLR Staff Mr. Chairman, this is Teacher Retirement. It’s ready.
Sen Dismang All right. Thank you. Members, do we have any questions on Senate Bill 65? Any discussion? Seeing none, we’ve got a motion do pass. We’ve got a second. All those in favor signify by saying aye. All those opposed? Motion carries. And I think that’s the end of our Senate packet. Page 16. Senate Bill 84.
BLR Staff Yes, sir. And this is the last one in the Senate packet and this is the Capital Zoning Commission. It’s ready, Mr. Chairman.
Sen Dismang Thank you. Members, do we have any questions on Senate Bill 84? Any discussion? Seeing none, I’ve got a motion do pass. I’ve got a second. All those in favor signify by saying aye. All those opposed? Motion carries. We’re going to go to our House bills.
BLR Staff Thank you, sir. On page 1, House Bill 1059, the Treasurer of State is the Disbursing Officer for animal rescue shelter appropriation.
Sen Dismang All right, thank you. Members, do we have any questions on House Bill 1059? Any discussion? Seeing none, I’ve got a motion do pass. I’ve got a second. All those in favor signify by saying aye. All those opposed? Motion carries. House Bill 1060.
BLR Staff General obligation bond appropriation.
Sen Dismang Members, do we have any questions on House Bill 1060? Any discussion? Seeing none, I’ve got a motion do pass. I’ve got a second. All those in favor signify by saying aye. All those opposed? Motion carries. House Bill 1061.
BLR Staff Appropriation for county aid and municipal aid.
Sen Dismang Members, do we have any questions on House Bill 1061? Any discussion? Seeing none, I’ve got a motion do pass. I’ve got a second. All those in favor signify by saying aye. All those opposed? Motion carries. Page 2, House Bill 1066.
BLR Staff This is the appropriation for the property tax relief appropriation.
Sen Dismang All right, thank you. Members, do we have any questions on House Bill 1066? Any discussion? Seeing none, I’ve got a motion do pass. I’ve got a second. All those in favor signify by saying aye. All those opposed? Motion carries. House Bill 1068.
BLR Staff City and county tourist meeting facilities and entertainment appropriation.
Sen Dismang All right. Thank you. Members, do we have any questions on House Bill 1068? Any discussion? Seeing none, I’ve got a motion do pass. I’ve got a second. All those in favor signify by saying aye. All those opposed? Motion carries. House Bill 1069.
BLR Staff This is a pass through for the refund of local taxes.
Sen Dismang All right. Thank you. Members, do we have any questions? Any discussion? Seeing none, I’ve got a motion do pass. I’ve got a second. All those in favor signify by saying aye. All those opposed? Motion carries. House Bill 1070.
BLR Staff Assistance to local enforcement and emergency medical.
Sen Dismang Members, do we have any questions on House Bill 1070? Any discussion? Seeing none, I’ve got a motion do pass. I’ve got a second. All those in favor signify by saying aye. All those opposed? Motion carries. Page 11.
BLR Staff Last one.
Sen Dismang All right. Page 11, House Bill 1139.
BLR Staff This is public employee retirement appropriation.
Sen Dismang All right. Thank you. House Bill 1139, Public Employee Retirement. Do we have any questions? Any discussion? Seeing none, we’ve got a motion do pass. We’ve got a second. All those in favor signify by saying aye. All those opposed? Motion carries. And that was the end of that. Members just a reminder, members own will be on Thursday. Deadline for submission is going to be noon on Wednesday. And we hope to be taking up higher education. Special Language meets in the morning at 8. All right. Thank you, members. Thanks for your work this morning. We are adjourned.