Transcript Highlights:

• These costs include the licensing costs, software costs, and other vendor costs discussed previously,
• These costs include the licensing costs, software costs, and other vendor costs discussed previously,
• Our drills are verified by the 360 software and 9-1-1.
• Speaking from my experience in the software enterprise world, it was flawless.
• These are not big, on-premises enterprise software pieces.

Keywords: 1182, all

Transcript Highlights:

• So all servers, all endpoints for the executive branch has this software on it.
• So we take advantage of the technology that's in the software.
• Because are y'all just being more frugal or more efficient with software? Can you address that?
• Each year, the authority's board approves a budget that must then be approved by the quorum court.
• We have allocated funds in this year's budget to accomplish those.

Summary: The Legislative Joint Auditing Committee met on June 5 and first adopted prior minutes and several committee reports. The executive committee report noted adoption of its minutes, staff updates on scheduled audits, approval of an annual financial audit for the City of Horseshoe Bend, and an update on the intern program. The Counties and Municipalities report covered delinquent private water and sewer audits, compliance follow-up with towns including Denning, Gum Springs, Omer, Fargo, Jericho, and Haynes, and review of current and deferred reports; the committee filed most current reports but deferred several and referred some matters to prosecutors and the Attorney General. The Educational Institutions report said 103 education audits were reviewed, most with no findings, while several school districts had findings and one Booneville School District finding was referred to law enforcement. The State Agencies report included findings at the Department of Finance and Administration and a deferred Department of Health report, and the committee filed 13 reports. The committee then received lengthy presentations on the State of Arkansas annual comprehensive financial report and the state single audit for fiscal year ended June 30, 2025. Legislative Audit issued unmodified opinions on the state financial statements, but identified two material weaknesses: insufficient internal controls at the Office of State Technology to monitor threats and unauthorized access, and improper methodology changes and documentation issues at the Division of Workforce Services affecting year-end estimates for unemployment-related accounts. The single audit covered $12.4 billion in federal awards across 469 programs, with 16 major programs reviewed. Auditors reported 33 findings overall, including 31 federal findings, $12.9 million in outstanding questioned costs, and qualified opinions for the Summer Electronic Benefit Transfer program, the Coronavirus Capital Projects Fund, and the Child Care Development Fund cluster. Committee members questioned DHS, the broadband office, OST, DFA, Education, and Workforce Services about the findings, corrective actions, cyber protections, federal drawdowns, child care reporting, and accounting methodology changes. Several agencies described corrective steps. DHS said it had changed how it draws Summer EBT funds, addressed provider revalidation and incarceration-related Medicaid issues, and updated internal processes and staffing. The broadband office said the questioned costs reflected invoice documentation disputes rather than missing payments and expected Treasury review to resolve the issue. OST said it was expanding logging, endpoint detection, and enterprise monitoring, and described broader cybersecurity investments, training, and a roadmap. DFA and Workforce Services addressed the workers’ compensation and unemployment accounting issues, with Workforce Services saying it had updated its policy and submitted the methodology to DFA. After discussion, the committee voted to hold the two statewide audit reports over until the August meeting, with members asked to submit specific questions in advance so only needed agencies would return. The final item was a special report on the Hot Spring County Solid Waste Authority for January 1, 2023 through June 30, 2025. The audit reviewed compliance with laws, board procedures, bidding, payroll, permits, inspections, and cash handling. It noted prior private audit findings on segregation of duties, that recent private audit reports had not been obtained for 2023 through 2025, and that the current administrator said prior office staff and bookkeeping contractors resigned when he was hired. The authority’s operations and revenue sources were described, and the report was presented for committee review.

Transcript Highlights:

• we put and got approved for in the... ...That's something that we put and got approved for in the budget
• We changed it so that budget amendments, which didn't fall under resolutions, now are required to be
• The previous administration invested in the... ...administration invested in the transition of our software
• some of the things y'all put in place, your system that you have, Mayor, your tracking system, your software
• make this transition, but we hired a project manager who has experience in change management and software

Summary: The Legislative Joint Auditing Committee met to approve prior minutes and receive reports from several subcommittees and audits. The executive committee reported that audit and special reports were scheduled for presentation, one requested report remained outstanding, and staff had reviewed circuit-court caseload assignments in Benton County’s 19th West Judicial District. The committee also heard that Arkansas legislative audit financial statements and audits for fiscal years 2024 and 2025 received clean opinions with no internal-control findings, and that the report was accepted. The counties and municipalities report covered delinquent private water and sewer audits, with many entities reinstated after filing required reports, and reviewed current and deferred reports; several reports were referred to prosecutors, the attorney general, or the Government Bonding Board. The education audit report covered 57 school district audits, with three districts—Camden Fairview, Forest City, and Eudora—deferred until the June meeting because of findings and referrals. A substitute motion amended the report to file the Nettleton School District report, and the amended report passed. The state agencies report noted findings at the Department of Public Safety and the Department of Transportation and Shared Services, including duplicate payments, collateral issues, record-keeping problems, and missing vehicle logs; the committee filed five reports. The committee then reviewed the City of Pine Bluff’s 2024 financial audit. The city received clean opinions overall, but the management letter identified serious issues in the mayor’s office, Parks and Recreation, and Finance, including unaccounted-for receipts, altered invoices, unallowable and questionable purchases, missing equipment, and weak cash-receipting and reconciliation procedures. City officials, including the mayor and department heads, testified that the problems largely involved prior activity, said they had terminated involved employees, referred matters to law enforcement, and described corrective steps such as a forensic audit, new procurement and accounting procedures, electronic receipting and payments, and software upgrades. After questions from members, the committee voted to file the Pine Bluff report and adjourned, with the next meeting set for June 4-5, 2026.

Transcript Highlights:

• That's a huge amount of money out of my budget. That's four or five employees.
• I just looked up, we were at about 4.79 billion was our budget. For education.
• And of course, being you know having the background of looking at school budget School district budgets
• budget crisis '08, '09, whatever it was.
• general budget.

Transcript Highlights:

• Outside of that, we do allow for several other software applications that have a built-in AI component
• , but only after it is carefully reviewed via our software risk review process.
• reviewed via our software risk review process.
• The Budget Reconciliation Bill presently in the Senate contains a provision that would prohibit states
• The Budget Reconciliation Bill presently in the Senate contains a provision that would prohibit states

Summary: The committee held a work session focused on technology in government, AI, broadband, and digital equity. Seattle CTO Rob Lloyd described the city’s AI strategy, emphasizing responsible use, privacy, security, community input, and data strategy. He said Seattle is using small pilots and partnerships to test AI for tasks such as public records processing, infrastructure inspection, and permitting, while keeping humans as the final decision-makers. Members asked about bias, liability, training on best practices, labor involvement, and public records; Lloyd said AI should remain an assistant tool, not a replacement for human judgment, and that Seattle is still testing solutions for records requests and permitting. WATech CTO Nick Stow and Deputy Director Mark Quimby discussed the state’s broader AI policy, the generative AI executive order, a sandbox with more than 15 agencies, and use cases including a resident portal, cybersecurity, and wildfire detection. They stressed consent, closed systems, human-centered design, and the need to govern all forms of AI, not just generative AI. Committee members raised concerns about federal data access, labor issues, and wildfire detection effectiveness. Spokane County IT staff described a more restrictive approach to AI, citing privacy, bias, and cyber risks. The county standardized on Microsoft Copilot as its only approved chat-style AI tool, blocked other AI chat platforms, and requires human review of all AI-generated content. They said AI is also being used by criminals for phishing and deepfakes, underscoring the need for strong policy and security controls. The committee also received an update from the Attorney General’s AI Task Force. Yuki Ishizuka said the task force has 19 members and eight subcommittees covering ethics, consumer protection, labor, health care, public safety, education, government efficiency, cybersecurity, and industry/energy. The task force is working toward an interim report due December 1, 2025 and a final report due July 1, 2026, and is reviewing recommendations through public forums and advisory committees. Ishizuka warned that a federal budget reconciliation provision could bar states from enforcing AI regulations for 10 years, and several members voiced support for state authority and asked about possible 2026 legislation. The committee then heard updates on broadband and digital equity. Commerce’s Dave Pringle said the BEAD broadband program is being reshaped by new NTIA guidance, which removed or reduced emphasis on several prior priorities, and Washington is now working under an expedited process to submit its state application by September 4. He noted that no projects have been built yet, that four counties did not receive applications in round two, and that the state is trying to keep applicants engaged through office hours and a shortened review window. The Office of Equity and the Digital Equity Forum reported increased participation, new members, and ongoing outreach to tribal, rural, and underserved communities, while previewing recommendations such as creating an interdepartmental digital equity team and improving data use. Finally, Lumen’s Robert Thoms described private-sector broadband deployment challenges, including permitting, regulation, and the economics of extending fiber, while noting continued investment in overbuild projects, a $30 low-cost service option tied to the former ACP, and work with the state, tribes, and libraries. No votes were taken; the meeting consisted of presentations and member questions.

Transcript Highlights:

• So, we're talking about replacing a potential software package.
• the same software. the same software.
• What is your total budget? How are the audits funded?
• What is your total budget?
• <00:59:34.000> You Minnesota Management and Budget. You Minnesota Management and Budget.

Transcript Highlights:

• That accounts for my budget team, which is three to four people.
• That accounts includes budget, my budget team, which is three to four people.
• If you reprioritize some other budget items, maybe you can get the pay where you won't have that turnover
• It was a Workday issue, so, and it was a release, you know, a software upgrade.
• Since this was a software issue, which may have impacted other institutions, did you look into whether

Summary: The meeting opened with prayer and approval of the January 8 minutes, then moved to review of education audit reports. The first report concerned Northwest Arkansas Community College, which had three findings, including repeat internal control deficiencies that caused financial statement misstatements and a tuition revenue loss tied to a new student information system. College officials said the issues were largely misclassification and process problems, not missing money, and described corrective steps such as monthly closing checklists, approval controls for journal entries, cross-training, and efforts to address staffing turnover and fill finance vacancies. Members asked about the tuition issue, whether students were notified or billed, and whether the software problem affected other institutions; audit staff said they were not aware of the same scenario elsewhere. The committee then filed the report as reviewed. The next report was Cedarville School District, which had one finding involving $794 in improper credit card charges by a resigned elementary teacher. The district was reimbursed, a police report was filed, and the matter was referred to the Professional Licensure Standards Board; members asked whether any further action or license-related consequences were known, but staff said they were not aware of additional action. The report was filed as reviewed. The final finding was for West Memphis School District, where auditors reported repeat capital asset issues, including failure to capitalize about $851,000 in construction costs for a baseball-softball complex and problems with inventory and asset inspection. The superintendent said the district had recently begun using Legislative Audit after prior private audits, and described new controls such as multi-level purchase approvals, separation of duties, tagging of equipment, and a cleanup of old inventory records. Members also discussed the relationship between private audits and Legislative Audit reviews, with staff explaining that private audit reports for public school districts still come before the committee and that the executive committee determines when Legislative Audit performs an audit. The committee filed the West Memphis report as reviewed and noted that 28 school districts had no findings before adjourning.

Transcript Highlights:

• you the exact cost of those. school for the actual software is 3,500 school for the actual software
• the LTE and then the stationary budget the LTE and then the stationary budget but<00:35:07.079><
• > for<00:36:27.079> the into the budget though was that for the into the budget though
• questions as we go through this budget questions as we go through this budget um<05:00:16.000>
• I'm sure as we go through the budget I'm sure as we go through the budget requests<05:17:10.558>

Keywords: 910, house, all

Summary: The Committee on Finance received an informational briefing from the Department of Law Enforcement on its priorities following the January 1 transfer of law enforcement assets into the department, including the sheriff’s division, narcotics enforcement, criminal investigations, homeland security, and the inspector general’s office. DLE said its goals are to improve public safety, accountability, communications, training, and standards. The department outlined planned initiatives such as stronger federal partnerships, narcotics and gun-violence enforcement, an agricultural crime unit, traffic and commercial vehicle enforcement, an explosive/fireworks enforcement section, gun buybacks, new police facilities in the airport area, Aahu, and the leeward side, a state training center, upgraded law-enforcement IT, and efforts to narrow salary gaps with county departments to improve recruitment. A major portion of the discussion focused on illegal fireworks enforcement after the recent explosion tragedy. DLE said its current task force is small and relies on ad hoc support from HPD, the Attorney General’s office, criminal investigations, and sheriffs, which is not sustainable. The department requested eight FTEs for the effort—one administrator, two clerical staff, and six investigators—plus funding for a laboratory, equipment, storage, disposal, vehicles, safety gear, and a criminalist. DLE said the explosive enforcement section would use an existing facility and that the initial lab startup cost is about $2 million. Members asked for follow-up materials, and DLE said it would send the explosive enforcement forms and additional details to the Finance and Judiciary chairs. Members also questioned staffing vacancies, interagency coordination, and whether new specialized units could be filled. DLE said it has about 119 vacancies and that recruitment is hindered by a roughly $28,000 starting pay gap with county police departments; academy classes are down to about 12 to 14 recruits. The department said it is streamlining hiring, using QR-code recruitment, and hopes specialized units will attract applicants. On coordination, DLE said it works closely with HPD and other agencies on operations such as fireworks enforcement and public events, and that DOCARE remains a case-by-case partner but is not currently moving into DLE. The committee also received updates on the Silver Alert program, which is nearing rollout with county MOUs and a coordinator expected later in the month, the special duty officer program, which is being moved to a web-based vendor-managed system at no cost to the department, and the SaferWatch school safety system, which is being deployed statewide with annual software costs of $3,500 per school in the first year and $2,500 thereafter. No votes or formal actions were taken.

Transcript Highlights:

• Senator Bryant, honestly, the underlying software, if you want to use that term for all the systems,
• So a big part of that is just trying to have a budget that we can stay within. Okay.
• This is an original contract for the implementation of financial software.
• I guess the first question will be, do we anticipate future budgets, federal budgets, having funding
• And I think a lot of our, you know, the majority of our budget is federally funded.

Keywords: 1204, all

Transcript Highlights:

• Every project, every budget line, bond oversight, meeting minutes, it's all there.
• So state agencies and Texas universities that receive state funds must justify their budgets to you,
• It's the software that's driving the car. So yes, he's shaking his head.
• We outfit Peterbilt 579s with our hardware and our software to make them level 4 capable trucks.
• The software is what's running that system.

Transcript Highlights:

• than<00:32:34.640> our<00:32:35.519> contingency Overall, the project is on budget
• This bill will provide a sales and use tax exemption for certain electric meters and software used in
• Electric meter, software, and other components then would be exempt if used or consumed at the Rochester
• used in the Rochester and software used in the Rochester Public<00:43:44.040> Utilities<00:43
• Electric meter, software, and Project.

Keywords: 1187, senate, all

Transcript Highlights:

• I'm David Pettit with the Legislative Budget Board.
• Kelsey Sims with the Legislative Budget Board.
• Um, the first is DIR call center software.
• Strata on the budget. My name's Chris Palazzo.
• And what's your total budget?

Transcript Highlights:

• Device, software, even your battery level, which is extremely scary, by the way, to determine how much
• The state budget in 2018 was about $170 billion.
• But in the last eight years, it has gone up by $100 billion based on the budget that we keep hearing
• But in the last eight years, it has gone up by $100 billion based on the budget that we keep hearing
• They've been covering the cost on their own budget terms, and through conversations, about $2 million

Keywords: 993, senate, all

Summary: The Senate convened, approved the journal, and took up a series of motions to discharge identical Assembly bills to the Third Reading Calendar, along with committee reports and amendments. The chamber also received an introduction from Senator Gonzalez honoring Maria Raine and her advocacy for guardrails on AI chatbots after the death of her son, and later adopted a Rules Committee report sending several General Business Law bills directly to Third Reading. The resolution calendar was adopted with some exceptions, and the Senate recognized several previously adopted resolutions honoring individuals and observances, including Barnabas McHenry, Arthur Jones Jr., Floyd Todd Peterson III, the Lexington School for the Deaf, Tadeusz Kosciuszko, Apraxia Awareness Month, Fibromyalgia Awareness Day, Prevention Week, Physician Anesthesiologists Week, and Golf Day in New York. The Senate then considered and passed numerous bills, many on consumer protection and public policy topics. Measures included bills on General Business Law, Public Health Law, Correction Law, Environmental Conservation Law, Executive Law, Vehicle and Traffic Law, Public Officers Law, Not-for-Profit Corporation Law, Public Housing Law, Education Law, Labor Law, and Public Service Law. Several bills were laid aside, including a Public Health Law bill by Senator Fernandez and a Public Service Law bill by Senator Parker. The chamber also passed a concurrent constitutional resolution by Senator Stec proposing an amendment to Article 14. During floor debate, senators explained votes on several measures. Senator Ramos spoke in support of paid sick leave for domestic workers, describing the bill as a long-overdue labor protection for a workforce historically excluded from such rights. Senator Fernandez described her bill as the Manufacturer Disclosure and Transparency Act, aimed at requiring notice and public disclosure of certain pharmaceutical patent settlement agreements to improve transparency and competition in prescription drug pricing. Senator Ryan and Senator Martins supported a bill restricting hidden algorithmic price manipulation online, and Senator May supported a bill limiting excessive rental car fuel charges as part of a broader consumer protection package. The Senate also passed a memorial highway bill naming a portion of Route 19 in LeRoy for Lieutenant Gary A. Scott, with Senator Borrello explaining the veteran’s service and sacrifice.

Transcript Highlights:

• When they're purchasing software?
• City of Houston has generally been organized to produce an annual budget and to speak budget.
• Um, the we've had conversations over the course of the day about software. utilization of software for
• So there is a simple explanation. for budget shortfalls that's deeply unsatisfactory. reality of budget
• And the simple explanation of budget shortfalls is The budget shortfall occurs when you spend more than

Keywords: 1184, house, all

Transcript Highlights:

• on county and school district budgets on county and school district budgets and<00:03:42.720>
• We’re spending more of our budget on digital.
• Yet we’re spending upwards of 50% on our collection budget on digital.
• budget on digital. Digital is currently budget on digital.
• At the our collection budget on digital.

Keywords: 1183, house

Transcript Highlights:

• this is a map that illustrates the decrease. percent decrease in jobs as a result of the federal budget
• When you know, our fiscal year 25 budget is 15 billion. Nine or 10 billion of that is no.
• We do quarterly Medicaid budget projections with the legislative finance committee staff, and we just
• We're looking at buying and purchasing software.
• This Crisis Track software is almost an add-on to that.

Transcript Highlights:

• But the budget delays were the cash payment.
• What does that budget look And so that's going to lead into our budget request for this year.
• Andrea, and it's not supplanting our budget.
• Software is included.
• Let's jump over to the incremental budget request.

Keywords: 914, all

Transcript Highlights:

• And then on the budget, dealing with the budget over expenses for the street funds... ...budget over
• over the budget monthly.
• So we did purchase Easy Time Clock and some software that we understood was supposed to rectify it.
• So we are looking into different software because we want to fix this.
• they have... ...called our software solutions, and they have agreed to help me do this.

Summary: The committee approved the February 12 minutes and received updates on delinquent municipal water and sewer reports for 2022 and 2023, noting continued progress toward compliance and reinstatement of turnback funds for several cities. It also deferred several matters to the June 4 meeting, including Fargo’s municipal accounting noncompliance report, Jericho’s street-fund misuse issue, Biggers and Holly Grove deferred reports, and a group of private water and sewer reports lacking proper responses. Members then heard and filed a detailed report on the City of Strong, which involved repeat findings on undeposited receipts, improper use of solid waste funds, unsupported spending, late payroll tax payments, accounting control problems, and fund balance issues. Mayor Darrell Howell described corrective steps, including new internal controls, outside CPA assistance, repayment of misapplied funds, budget amendments, and efforts to address the findings; the committee commended the city’s efforts and filed the report. The committee also filed reports on Thornton Waterworks, Calhoun County, Salem, Briarcliffe, Compton Water Association, Montgomery County Regional Public Water Authority, Camden, Johnson County, and Sparkman, while deferring several private water reports and other unresolved items. A major portion of the meeting focused on the Pulaski County Regional Solid Waste Management District and other regional solid waste districts. The audit found issues in Pulaski County involving unapproved payroll items, missing credit card documentation, unapproved contracts, vehicle and cell phone documentation problems, lack of competitive bidding, and weak internal controls; members questioned the district’s practices and deferred the report to June while requesting district representatives appear. The committee also reviewed a statewide report on six regional solid waste management districts, with findings in Pulaski, Faulkner, and Benton counties and no findings in three others; that report was likewise deferred for Pulaski County questions. The meeting ended after a lengthy discussion with Cross County Rural Water System about overdue audit posting, water quality problems, grant-funded improvements, board notice practices, and the broader challenges facing rural water systems, after which the committee filed the report and adjourned.

Transcript Highlights:

• As you know, over the last couple of years, there have been pretty big budget cuts.
• Each of those buckets by itself is greater than our entire annual budget.
• Thank you for the opportunity to present on this next budget change proposal.
• I think this is the smallest budget ask that I've seen before me.
• I also have with me our budget director, Abel Escobar.

Summary: The Assembly Budget Subcommittee on State Administration heard several budget proposals from CDTFA, the Board of Equalization, and the Franchise Tax Board. The first panel focused on cannabis, hemp, flavored tobacco, and related enforcement. CDTFA requested ongoing funding to implement cannabis tax changes, enforce the new intoxicating hemp restrictions and flavored tobacco seizure authority, and continue compliance work. The department said it is targeting illicit product, protecting licensed businesses, and using referrals from the public and lawmakers to focus inspections. The LAO supported some of the proposals but urged the Legislature to treat them as part of a longer-term enforcement strategy and raised concerns about the use of General Fund support for cannabis enforcement. Public testimony on the cannabis item largely supported stronger enforcement and funding for the legal market. The committee also heard CDTFA’s request to reappropriate funds for an upgrade to the CROS tax collection system, which would improve taxpayer services, security, and software maintenance without adding new money. A separate CDTFA proposal would make all delivery network companies, such as DoorDash and Uber Eats, marketplace facilitators for sales tax purposes. CDTFA said the change would reduce confusion for restaurants and improve compliance, while the LAO questioned whether the proposal functioned more like a tax increase because it would also capture service fees. Members raised affordability concerns, but the proposal was framed by the administration as a parity and compliance measure. The subcommittee then considered a governor’s proposal for a sustainable aviation fuel tax credit. Finance argued the credit would help decarbonize aviation and support in-state production, while the LAO recommended rejection, citing cost, uncertainty about environmental benefits, possible diversion of diesel excise tax revenues from transportation programs, and concerns about consistency with voter-approved transportation funding rules. Testimony from airlines, labor unions, airports, and refinery workers strongly supported the credit, emphasizing union jobs, refinery conversions, and emissions reductions, while fuel retailers and some others warned about fiscal risk and higher fuel prices. The chair and some members expressed support for the proposal despite the funding concerns. Finally, the BOE presented an IT modernization project for state-assessed property administration, saying the current system is outdated and manual and that a new system is needed to improve accuracy, cybersecurity, and workflow efficiency, especially with a likely increase in workload from new VoIP assessments. The LAO asked for more justification for the timing, but BOE said the urgency stems from aging systems and growing workload. BOE also requested modest funding to implement SB 293 changes to intergenerational property transfers and wildfire relief guidance, which the LAO did not oppose. The Franchise Tax Board began its presentation on the final phase of its Enterprise Data to Revenue modernization effort, describing the project’s rollout across audit, collections, legal, and filing enforcement workloads and noting it is now in a warranty period.

Transcript Highlights:

• let me get on to our we have two budget let me get on to our we have two budget requests<00:17:50.960
• You know, usually software has a cycle, and we have to go back out and see if we’re using the best software
• <00:23:24.799> and if we're using the best software and if we're using the best software and
• > today<01:36:18.560> is course, our budget request today is course, our budget request
• These proposals specifically budget.

Keywords: 910, house, all