Keywords: 1204, all

Keywords: 1204, all

Keywords: 1204, all

Summary: The State Insurance Programs Oversight Subcommittee met on June 17 and reviewed a series of Employee Benefits Division and Office of Property Risk items. Grant Wallace presented March and April formulary changes, explaining that the updates favored lower-cost generics, re-tiered some drugs, left several new-to-market drugs uncovered pending more evidence, and added quantity limits in some cases. The committee approved those formulary recommendations. The subcommittee also approved a cell and gene therapy policy that would exclude automatic coverage of those therapies and route them through prior authorization and review, with members noting the process should not delay urgent cases and that appeals remain available. Members then discussed a UAMS professional consultant services contract amendment for pharmacy benefit consulting. The discussion focused on confusion over the dollar amount and scope, with Wallace clarifying that the committee was being asked to approve up to $2.596 million, including optional services related to coupon and rebate management that could be used later without returning for another approval. Several members raised concerns about matching the written contract to the approval amount and about the relationship to the current pharmacy benefit manager, but the committee ultimately approved the item with the understanding that any use of the optional services would return to the committee. The committee also reviewed, without objection, a Blue Cross/Blue Advantage third-party administrator contract, a CompSack employee assistance program contract, and approved proposed 2027 employee and public school health plan rates of 9.8% and 4.9% increases, respectively. Wallace also said the UnitedHealthcare rebid was in final negotiation and would return in August. On the property risk side, the committee reviewed permanent rules for the property insurance program, a contingency-fee subrogation contract with Denenberg-Tuffly, and extensions for Sedgwick Claims Management, Actuarial Advantage, and Stevens Capital Management. Members asked about claim-adjustment delays after a major winter storm, and Wallace said performance guarantees and communication requirements had been added, with claims still expected to vary by case. The committee also approved 2026-27 captive insurance program rates, which included no change to minimum deductibles, lower rates for K-12 and higher education, a higher rate for state agencies, and an overall 10% reduction. Wallace said the reductions reflected improved actuarial foundations, better claims management, and the program’s first-year performance. The meeting adjourned after approving the rate item.

Summary: The committee first approved the minutes and then heard a presentation from Maddie San Juan of the Women’s Foundation of Arkansas on the report “Holding It All Together: Working Moms and Child Care in Arkansas.” She said the research found Arkansas moms are working and want to work, but child care costs, inflexible schedules, inadequate paid leave, and the mental load of caregiving are major barriers. She cited survey and focus group findings showing flexible hours were the most requested workplace support, 69% of moms identified child care costs as a barrier, and many families spend a large share of income on care. Members asked about labor force trends, what flexibility means in practice, and the cost and age structure of child care assistance programs. The presenter also noted child care affects economic development and workforce recruitment, and mentioned a Department of Commerce option that may help pay child care for people seeking training. Department of Education and Office of Early Childhood staff then gave updates on internal dashboards for enrollment, applications, and provider participation in School Readiness Assistance (SRA), saying the tools are now live for internal use and should improve transparency and data access. They said CLASS transition funding from the PDG grant would be released soon to providers who completed observations, and clarified that OEP awards based on CLASS scores are separate from OEC’s work. They also warned providers about a payment interruption during the transition to a new system: June 26 would be the last day to submit SRA payments for processing, payments would stop June 30, and billing would continue without processing from July 1 to 13, with back payments expected when the system resumes around July 14. Members raised concerns about provider cash flow, early childhood special education funding, an overpayment appeal involving a child care center, and whether CLASS data would be public; staff said the data is FOIA-able but not used by the department to set current quality or rates. The department also said it is reviewing audit requirements tied to Head Start and SRA, that Early Head Start children remained in their facilities after a closure, and that a market rate survey/cost analysis is still in procurement. Staff reported that the QRIS process will begin with a June 23 webinar and that CLASS will be part of a broader quality system still being developed with provider and parent input. They also said the local lead network was re-competed and will cover all counties starting July 1 with 23 local leads, and that the PDG partner group has been formed to provide ongoing stakeholder feedback. The meeting ended with no further business and adjournment.

Summary: The committee reviewed several personnel and appropriation items, including Item C, which involved a two-for-two position swap with no net increase in authorized positions and was approved after motion. Item D for South Arkansas College added three net positions through a mix of growth and swap pool requests, including food service, public safety, housing support, and compliance-related roles; it was also approved. Item E moved positions and $3 million in salary and match appropriation within Workforce Services to consolidate shared services, with no net change in positions, and was approved. The committee then took up Items F through O as continuation requests for previously approved or reviewed positions and differentials to carry into FY27. These included growth and surrender pool positions at several agencies, various pay differentials such as second-language, on-call, hard-to-fill, certification, and labor market adjustments, as well as continuation of grant-funded classifications tied to ARPA and IIJA grants and other federal grants. After no questions, the committee approved the continuations in a single motion. Under the supplemental agenda, the committee suspended the rules and approved Item A-1, which authorized salary increases above grade maximums for 92 employees due to merit increases. A senator asked about several public safety classifications listed as Med 14, 16, 14, and 15, and staff indicated they were likely crime lab medical examiner positions. The meeting then adjourned.

Summary: The committee first approved special expenses incurred by the committee, then took up interim study proposals. ISP 2025-069, sponsored by Representative Perry and presented by Representative Eaton, would move collection of sales tax on motor vehicles from the current post-purchase registration process to the point of sale at dealerships. Committee members and DFA discussed the current 60-day registration/tax payment window, possible fiscal and programming impacts on DFA, the added administrative burden on dealers, verification and audit issues, and concerns about whether the change would improve or complicate tax collection. After questions, the committee voted to send the proposal to research/interim study. The committee then considered ISP 2025-071, from Representative Ray, based on House Bill 1636, which would phase out the state excise tax on soda over five years if revenue triggers were met. Representative Ray explained the tax revenue supports the Medicaid trust fund and said the proposal was intended to continue discussion after the bill failed on the House floor in the regular session. Members asked about the annual revenue generated, the trust fund’s other revenue sources, and whether the revenue would be replaced. DFA was asked to provide additional information on how withdrawals from the Medicaid trust fund are authorized and whether the legislature has oversight. The committee then approved the proposal for interim study and adjourned.

Keywords: 1204, all

Keywords: 1204, all

Keywords: 1204, all

Keywords: 1204, all

Summary: The committee met to review a large slate of fiscal year 2026 and 2027 appropriation, transfer, and continuation requests across multiple sections. Early items included temporary appropriations for agencies such as Health, DHS, Education, Public Safety, State Police, Emergency Management, Aeronautics, Military, Economic Development, and Game and Fish, covering items like maternal health outreach, energy assistance repayments, Wynne High School tornado rebuilding, senior food services, cybersecurity, crime victim reparations, aviation grants, conservation incentives, and emergency tower maintenance. Members asked questions on several items, including DHS aging carry-forward funds and Treasury custodial banking fees tied to COVID-era balances; the committee also approved a disclosure by the chair on the Game and Fish-related item before voting to approve the section. The committee then approved continuation requests, CARES Act and ARPA reallocations, and federal grant appropriations. Notable discussion included the Boonville developmental disability project, ALIGN program reallocations at several universities, a small business technical assistance grant at UA Little Rock, and a Department of Public Safety highway safety grant, for which members requested more detail on operating expenses and professional fees. Additional approvals covered a transfer to the Merit Teacher Incentive program, restricted reserve fund transfers for military medical command and university projects, and a state central services deduction held at 2%. The Department of Commerce also received approval for a reallocation of positions and spending authority tied to its organizational realignment. Later sections included shared technology and higher education transfers, cash fund appropriations for school Medicaid reimbursements, corrections, youth mental health, narcotics detection canines, bike safety equipment, a state motor pool pilot, and law enforcement safety costs. The committee also reviewed budget classification transfers, including a Governor’s Office legal fee transfer related to a California lawsuit, and heard explanations about E-Rate reimbursements affecting the Office of State Technology. Members asked about VOCA funding levels for crime victim services and about the National Security Grant Program for nonprofits and faith-based organizations; officials said federal funding had declined from prior highs but appeared to have stabilized, and that the nonprofit security grant is an annual federal program. The meeting concluded with review of pay plan requests, DHS overtime funding for child protection caseloads, and a year-end adjustment request allowing DFA to make up to $1 million in transfers to close the books, after which the committee adjourned.

Summary: The committee met to review a supplemental agenda, procurement rule revisions, methods of finance, discretionary grants, contracts, and a member disclosure. The Office of State Procurement presented rule changes tied to 2025 legislative changes, including Act 782, with updates to sole-source definitions, unrealistic bids, protest requirements, debarment procedures, and recodification references; the committee voted to accept the supplemental agenda and approve the rules. Members also approved eight methods of finance covering university repairs, equipment replacement, property purchase, and capital projects, along with a large slate of discretionary grants for courts, health, DHS, historic preservation, and tobacco prevention programs. The committee then reviewed RFQs and six ratifications. The ratifications included a Workforce Connections payment to ACT WorkKeys, Department of Health costs from an ice-storm-related water leak, a large Department of Public Safety ratification for Motorola’s Arkansas Wireless Information Network upgrade, Veterans Affairs HVAC and medical-service payments, and a UA Little Rock painting contract. The Department of Public Safety ratification drew extended questioning about why the expired Motorola contract had not been renewed sooner and why the issue took months to reach the committee; agency officials said the project was bond-funded, had not been tracked in ASIS, and involved ongoing negotiations and system updates. Despite concerns, the committee approved the ratifications. Members also reviewed a long list of construction, intergovernmental, out-of-state, and in-state contracts, including numerous university, DHS, health, corrections, and state agency agreements. Several contracts were discussed in more detail, including an SAU custodial contract question about sales tax and transparency reporting, and Department of Corrections aerial application contracts for Tucker and Cummins farms, which officials said served separate facilities in different parts of the state. The committee approved the contract lists, reviewed reports, and accepted a disclosure from Representative Andrew Collins regarding his investment interest in a company leasing property to Arkansas Rehabilitation Services before adjourning.

Summary: The committee met to review Arkansas Scholarship Lottery contracts and receive updates on operations and finances. Sharon Strong, the lottery’s executive director, presented a new three-year advertising and marketing contract with Cranford Company for $19.29 million, replacing an expiring contract and coming in below the prior three-year amount. Members asked about the RFP process, number of bids, and how cost is weighted in the award formula; the contract was reviewed and approved without objection after a motion and vote. The committee also reviewed a three-year Learfield sponsorship contract tied to University of Arkansas promotional events for $86,800 per year, with a corrected three-year total of $260,400; members questioned a system-generated summary figure that incorrectly showed a seven-year total, and staff clarified the contract itself was only for three years with no extensions. That item was also reviewed without objection. Strong then presented the fiscal 2027 budget, highlighting expected savings of about $1 million each from the new gaming system/scratch ticket contracts and the new advertising contract. The lottery projected slight shifts in instant and draw ticket revenue, corresponding prize payout changes, and net proceeds of about $108.2 million transferred to the scholarship account. In the monthly disclosure report for May 2026, she reported flat instant game sales, a 12.6% increase in draw game sales, and year-to-date net proceeds ahead of budget, with strong draw game performance attributed in part to Powerball. Members asked about unclaimed prizes, which remain in reserve during the year and are transferred at fiscal year-end to the scholarship trust account except for a $1 million reserve, and about how scholarship funds are distributed through the Division of Higher Education based on student rosters and class year awards. The committee also discussed the lottery’s financial statements, including revenue, prize payouts, operating expenses, trust account balances, and unclaimed prize balances. Staff explained that the lottery is self-sustaining and funded by lottery revenue, not taxpayer appropriations, and that the trust account balance is used to meet scholarship requests from higher education. The meeting ended with Senator Hill praising the lottery staff’s marketing around a recent large winner in Little Rock, and the committee adjourned.

Keywords: 1204, all