Transcript Highlights:

• that as I was driving into work that morning, I said to myself I had picked a pretty good time to be DFA
• Uh, so I picked a good time to be DFA secretary.
• but I do want to acknowledge Mark Mhhoff, who is the director of our financial control division at DFA
• Um, I'll wrap up by saying, um, That I do still think it's a good time to be DFA Secretary despite the
• Yes, DFA comes up with a, a calculation for an indirect cost for federal grants for things like their

Transcript Highlights:

• I am the analyst for HCA with DFA. Thank you. Thank you.
• I am the analyst for HCA with DFA. Thank you. Thank you.
• And that is a group of economists from DFA, from LFC, from Tax and Rev, and the Department of Transportation
• And that is a group of economists from DFA, from LFC, from Tax and Rev, and the Department of Transportation
• joined by Secretary Emily Kultenbach of the Aging and Long-Term Services Department and Lori Seacca, my DFA

Keywords: 996, all

Transcript Highlights:

• Nine unauthorized transactions totaling over $5,600 occurred in a bank account at DFA Revenue from April
• Chair, that concludes the finance for DFA. Thank you, sir.

Summary: The State Agencies Joint Audit Committee met to open the meeting with prayer, recognize interns, and approve the minutes from the March 12 meeting. The committee also agreed to defer a special report from the Health Department until its August meeting. Staff then reviewed audit reports, including 12 reports without findings that were filed without objection. The main report discussed was the Department of Finance and Administration FY24 audit, which contained three findings: a stolen taser from the Alcohol Beverage Control Enforcement Division valued at about $1,300 and referred to the Attorney General; improper federal grant expenditures identified by the Office of Intergovernmental Services, with about $5,500 later reimbursed; and nine unauthorized bank debits totaling more than $5,600, most of which were refunded. Members asked no questions on the DFA report, and it was filed. The committee announced its next meeting for August 13 and then adjourned.

Transcript Highlights:

• Also with us today, I have my DFA analyst colleague Skye Stone and Ms.
• Office of Natural Resource Trustees Budget is the Natural Resource Trustee, Maggie Hart Stevens, and my DFA
• You know, there is no difference between the LFC recommendation and what DFA has recommended for recurring
• The LFC I'm sorry, with me today is Director Roberta Cohen and my counterpart from DFA, Diego Jimenez

Keywords: 996, all

Transcript Highlights:

• This will be the presentation by DFA for the balanced budget proposal by the governor.
• Jim Hudson, Secretary, DFA. Good morning, Jessica Moore, DFA budget.
• Just real quickly on Jessica Moore, you probably have not had a chance Moore, DFA budget.
• She's leading up the budget team at DFA.
• And we may need to bring someone up from DFA or from UA Pine Bluff to get more specific.

Summary: The committee first considered revisions to the JBC rules, which staff said were all prompted by acts passed in the 2025 legislative session. The rules were adopted without objection. Members then received a balanced budget presentation from DFA Secretary Jim Hudson on the governor’s FY27 proposal, which he said was built around three priorities: limiting state government growth, continuing investments in education, and advancing income tax cuts. He highlighted major additions for education funding, EFA growth, pay plan costs, higher education productivity funding, drug task forces, corrections medical costs, the governor’s 1033 initiative, SNAP error-rate reduction, and Medicaid sustainability, while also explaining a new A/B funding category structure intended to prioritize recurring costs and preserve room for tax cuts. Members questioned Hudson about the cost of income tax reductions, the constitutional balanced-budget requirement, education funding, the Educational Adequacy Fund, Medicaid trust fund balances, and the impact of federal changes on Medicaid and SNAP. Hudson said each tenth of a percent income tax cut would cost about $58 million, the budget remained balanced, public education would still receive historic increases, and the Medicaid trust fund would be monitored closely with additional set-asides proposed. He also said the FY27 SNAP administrative cost increase would be about $18 million. The committee then heard from the Division of Higher Education, which reported institutions were 2.61% more productive overall and that the budget recommendation followed the statutory productivity formula. Questions focused on why some institutions were receiving decreases or large increases, how the formula works, and how the new return-on-investment metric and committee composition would affect future funding. The committee approved several higher education-related actions, including personnel changes for nine institutions and special language for North Arkansas College’s move into the University of Arkansas system. Staff then walked members through the higher education appropriation summary, explaining large percentage increases at several institutions were tied to federal funds or corrected carry-forward issues, including the U of A School of Mathematical, Sciences and the Arts, South Arkansas College, SAU Tech, ASU Mountain Home, and ASU Newport. Members also discussed UAPB’s 1890 extension program and the University of Arkansas Division of Agriculture’s land-grant matching funds; officials said UAPB’s recommendation was being aligned with actual spending and that the Division of Agriculture’s Smith-Lever and Hatch matches were included within its overall appropriation. The committee ultimately adopted the Higher Education Coordinating Board’s recommendations for all institutions and then moved on to the Department of Corrections section, with the chair outlining how the committee would proceed through those appropriations by section.

Transcript Highlights:

• This will be the presentation by DFA for the balanced budget proposal by the governor.
• Jim Hudson, Secretary, DFA. Good morning, Jessica Moore, DFA budget.
• Just real quickly on Jessica Moore, you probably have not had a chance Moore, DFA budget.
• She's leading up the budget team at DFA.
• And we may need to bring someone up from DFA or from UA Pine Bluff to get more specific.

Summary: The committee first adopted revised JBC rules, which staff said were updated to reflect legislation passed in the 2025 session. It then heard a presentation from DFA Secretary Jim Hudson on the governor’s proposed balanced budget for FY27, with no action taken. Hudson said the budget reflects three priorities: limiting state-government growth, continuing investments in education, and advancing income-tax cuts. He highlighted increases for education funding through EFAs, pay-plan costs for Corrections, DPS, and the Attorney General, higher education productivity funding, drug task forces, a Corrections medical contract, the governor’s 1033 initiative, SNAP error-rate reduction efforts, and an additional $100 million set aside for Medicaid sustainability. Committee members questioned the size of the tax cuts, the balance requirement, public education funding, Medicaid trust-fund levels, EFA funding, and the expected impact of new SNAP cost-sharing rules. The Division of Higher Education then presented its productivity-based funding recommendations. Officials said institutions were 2.61% more productive overall, with funding changes driven by a statutory formula that rewards degree production, underserved populations, and high-demand fields. Members asked about declines at UA Little Rock, the formula’s multipliers, the role of the Arkansas Access Act and a new return-on-investment metric, and how two-year colleges are adjusted for size. The committee also reviewed special items and approved two letters: one authorizing 17 net personnel changes across nine institutions, and another adding special language for North Arkansas College’s entry into the University of Arkansas system. The committee then adopted the Higher Education Coordinating Board’s recommendations for all institutions. A lengthy portion of the meeting focused on the University of Arkansas system, especially Fayetteville’s athletics funding and the broader impact of the House/NIL settlement. Chancellor Charles Robinson and system officials explained that the board had waived a longstanding campus transfer and directed the university to provide an additional $6 million to athletics, with some costs likely to be passed through to students but partially offset by existing budget growth. Members debated whether the university should prioritize academics or athletics, how the transfer originated, and whether the athletic changes would affect affordability. The committee also discussed the 1890 extension program at UAPB and the Division of Agriculture’s land-grant funding. UAPB officials said the state match is intended to be one-to-one, that the current recommendation aligns appropriation with actual spending, and that a $2 million set-aside remains available if needed. The Division of Agriculture later clarified that its Smith-Lever extension and Hatch research funds are part of the UA system’s separate budget and that the state matched about $6.2 million in federal extension funding last year. The committee then moved to the Department of Corrections. It approved G1, transferring 51 positions to the secretary’s office to activate a recidivism program, with an estimated cost of about $4 million. Staff then began walking through the department’s FY27 budget, noting an increase of about $8 million for administration and shared services, including a $170,000 sex-offender assessment appropriation moved under Act 723 of 2025 and roughly $6 million more for medical contracts. Questions on the Corrections budget had just begun when the transcript ended.

Transcript Highlights:

• Mario Sabinglia, DFA Analyst. So we just have a pretty short packet in front of us, four pages.
• are the acting Secretary of the Children, Youth, and Families Department, Valerie Sandoval, and my DFA
• We are working much more closely and collaboratively with the LFC and DFA on our gross spending and meet
• Secretary Sylvia Cerna and my counterpart from DFA, Mr. Diego Jimenez.
• Ed Smith, and my counterpart from DFA, Mr. Diego Jimenez.

Bills: SB48, SB64, SB100

Keywords: State Fairgrounds District, fairgrounds bonds, public financing, bond authorization, gross receipts tax, gaming tax, tax-backed bonds, infrastructure funding, Albuquerque fairgrounds, State Fair Tid, economic development, municipal bonds, revenue pledge, capital projects, New Mexico finance, special education, office of special education, deputy secretary, public education department, IEP

Transcript Highlights:

• We're going to go to DFA, and I can always say we agree with everything that the legislature is doing
• You want me to do your script for you, DFA? Let me do your script.
• Mary Beth Dunsmore, I'm the DFA analyst for ECCD. I'm not going to go into universal child care.
• LFC does have $5 million for this, but it won't show apples to apples as the recommendation goes to DFA
• Are there projections on when we might meet that from the DFA standpoint? Yeah, sure. Mr.

Keywords: 996, all

Transcript Highlights:

• We're managing that in concert with DFA.
• But all that information can be found on the DFA website.
• And so it's kind of a convoluted thing because it goes through DHSCM and then it goes to DFA.
• DFA does a lot of disaster assistance and response as well, but we've been working together.
• We validate that, and therefore DFA can pay them. And get that back.

Transcript Highlights:

• And then we have as you know, Jennifer, we have Leo from DFA somewhere right behind me.
• slide three, the consensus revenue estimate is the product of four agencies' career economists: the DFA

Keywords: 996, all

Transcript Highlights:

• I am joined by Secretary Gina DeBlossi, as well as Skystone, my DFA counterpart.
• And with that, I will turn it over to my DFA counterpart for any additional comments. Thanks. Mr.
• And I believe—I don't know, David, does DFA manage the allocation of those funds? Which agency?
• We were required to provide an accounting of receipts for direct election costs to DFA, and then they
• But to be clear, the way the mechanism works is we receive that reimbursement from DFA.

Bills: HB1

Keywords: feed bill, legislative appropriations, legislative branch, New Mexico Legislature, general fund, legislative council service, legislative finance committee, legislative education study committee, house chief clerk, senate chief clerk, per diem, mileage, session expenses, interim committees, district staff, capitol complex, capital outlay data system, legislative processing system, redistricting, census redistricting

Transcript Highlights:

• Chairman, Jim Hudson, Secretary DFA, and you know, number one rule in public speaking is don't follow
• He is running the program out of DFA, and he's doing an exceptional job.
• The governor asked the DFA to take a lead on this because we can run the program pretty efficiently.
• Is that only DFA internally? Is that local health care providers that are part of a committee?

Summary: The committee first heard extensive public testimony from youth and advocates urging stronger restrictions on vaping. Speakers described vaping as a youth-targeted public health problem, citing flavored products, social media marketing, nicotine addiction, brain development concerns, school disruption, and exposure to harmful aerosol. They recommended prohibiting vaping in public indoor spaces and aligning vape rules with smoke-free laws. Committee members praised the speakers and encouraged them to continue building support for future legislation. The main presentation was on Arkansas’s Rural Health Transformation Program, administered through DFA. Secretary Jim Hudson and program director Brad Andi explained that Arkansas received about $209 million in the first year under the federal program, with potential for roughly $1 billion over five years if performance is strong. They emphasized that the program is meant for long-term rural health transformation, not general operating support, debt relief, or new construction. The state’s plan centers on four initiatives: HEART for prevention and community health, PACT for access and provider collaboration, RISE for workforce development, and THRIVE for technology and telehealth. Officials said applications will be handled through upcoming notices of funding opportunity, with a focus on local, shovel-ready projects, regional collaboration, and transparency. Committee members asked how the program would work for hospitals, clinics, nonprofits, schools, faith groups, and urban providers serving rural patients. Officials said eligibility is broad if applicants can show a connection to rural health, and that targeted renovations, mobile units, school-based clinics, farm-to-school or garden projects, EMS equipment, residency expansion, and behavioral health initiatives may fit if they align with the plan. They stressed that the program cannot fund working capital, routine maintenance, or new buildings, but can support repurposing space and collaborative networks. Members also raised concerns about protecting existing rural providers from being displaced, and officials said applications would be reviewed by a state committee with technical assistance and a reimbursement-based process. The committee then reviewed and took no objection to several DHS and Health Department rules. DHS presented a Medicaid/CHIP rule implementing federal requirements for incarcerated youth, including pre- and post-release coverage, care coordination, targeted case management, and screening services, with no public comments received. The Health Department also presented a licensing rule for audiology and speech pathology that implements recent acts and changes the renewal deadline; that rule was likewise reviewed without objection. The meeting adjourned after no further business.

Transcript Highlights:

• The ACFER financial statements, which were prepared by DFA, include the following entities: all state
• These changes were not justified, nor were they properly filed with the DFA Office of Accounting.
• Jim Hudson, Secretary DFA? Andy Babette, DFA. Thank you, gentlemen. You know the drill.
• This is not nested within DFA, okay? Mr.

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:

• The ACFER's financial statements, which were prepared by DFA, include the following entities: all state
• These changes were not justified, nor were they properly filed with the DFA Office of Accounting.
• These changes were not justified, nor were they properly filed with DFA Office of Accounting.
• Andy Babbitt, DFA. Thank you, gentlemen. You know the drill.
• This is not nested within DFA. Okay, Mr.

Keywords: 1204, all

Summary: The Legislative Joint Auditing Committee met on June 5 and first adopted the March 2026 minutes, then approved reports from the executive committee and the standing committees on counties and municipalities, educational institutions, and state agencies. The counties and municipalities report noted progress on delinquent private water and sewer audits, compliance improvements by Denning and Gum Springs, and a 60-day compliance window for Omer and Fargo; several reports were deferred, while others were referred to prosecutors, the Attorney General, or the Government Bonding Board. The educational institutions committee filed 103 audit reports, including findings for several school districts, and one Booneville School District finding was referred to law enforcement. The state agencies committee filed 13 reports and deferred one Department of Health report to August. The committee then reviewed the State of Arkansas annual comprehensive financial report and single audit for fiscal year 2025. Legislative Audit reported clean opinions on the state’s financial statements, but identified two material weaknesses: insufficient internal controls at the Office of State Technology over threat monitoring and unauthorized access, and problems at the Division of Workforce Services with changes to year-end accounting estimates and documentation for unemployment-related receivables and payables. The single audit covered $12.4 billion in federal awards across 469 programs, with 16 major programs reviewed; auditors reported 33 findings, including 31 federal findings, $12.9 million in outstanding questioned costs, and qualified opinions for the Summer EBT program, the Coronavirus Capital Projects Fund, and the Child Care Development Fund cluster. Findings included improper advance draws and reporting issues in Summer EBT, documentation problems in broadband projects, and reporting/reconciliation issues in child care funding. Members questioned agency officials from DHS, the Office of State Technology, the Department of Finance and Administration, the Department of Education, and Workforce Services about the findings and corrective actions. DHS said the Summer EBT issue involved drawing funds in advance and that procedures had been changed for the 2026 cycle; it also explained several repeat findings as timing or provider-enrollment issues. OST officials said they were expanding logging, endpoint detection, and enterprise monitoring, and described cybersecurity as a moving target requiring more investment and training. DFA and Workers’ Compensation officials discussed the workers’ comp fund’s actuarial position and said it should be monitored but did not require immediate action. Education officials said the child care reconciliation problems stemmed from a former employee’s failure to reconcile reports, that staffing and checks had been strengthened, and that the federal funding cut affecting child care was a separate issue. The committee voted to hold the two major state financial reports over until the August meeting, with members asked to submit specific questions in advance, and then received a special report on the Hot Spring County Solid Waste Authority review.

Transcript Highlights:

• If you look at the chart, and this is a draw of $1.5 billion, so we haven't run the scenario, DFA hasn't
• DFA hasn't run the scenario for $1 billion.
• They agreed, and DFA agreed, and we came to an agreement on the bill.
• DFA may be the right place to put that with the local government so that they can look at both things
• The Secretary mentioned several existing resources, and we agree with her assessment regarding DFA and

Bills: SB241, SB145

Keywords: child care, child care assistance, child care subsidy, early childhood education, early childhood care, daycare, preschool, pre-K, Head Start, Early Head Start, Children's Code, early childhood education and care department, ECECD, child care facilities, licensed child care, registered child care, copayments, waitlist, subsidy, federal poverty level

Transcript Highlights:

• They have various little projects that we currently help or recommend to LFC and DFA for any of their
• So DFA is recommending 12 million, while the LFC is not recommending it.
• The DFA did also increase those two categories slightly; we're talking about 900 and 1,300.
• General Miguel Aguilar, the Adjutant General of the New Mexico National Guard, and my counterpart from DFA
• Randy Varela and my counterpart from DFA, Executive Analyst Diego Jimenez.

Keywords: 996, all

Transcript Highlights:

• I'm Andrew Minor from DFA. I'm filling in for Mr. Jimenez today.
• There was a pretty big difference between LFC and DFA, so we decided to work on RLD in a work group.
• Chairman, Representative, DFA submitted Line 17, Mr.
• Chairman, Representative, DFA submitted new, some revised language for that appropriation.
• Again, that was in both the LFC and the executive; DFA had submitted some revised language.

Keywords: 996, all

Transcript Highlights:

• The Office of Budget at DFA has recommended the requested reallocation.
• The Office of Budget at DFA has recommended the requested reallocation.

Summary: The committee reviewed several personnel and appropriation requests. Item C was a two-for-two position swap with no net increase in authorized positions and was approved. Item D, for South Arkansas College, added three net positions through a mix of growth and swap pool positions, including food service, public safety, housing, and compliance support roles, and was 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 considered a group of continuation items for FY27, covering previously approved growth and surrender pool positions, various differentials, hard-to-fill and on-call pay, a labor market adjustment for crime lab medical examiners, and continuation of grant-funded classifications tied to ARPA and IIJA grants across several agencies. These items were reviewed together and approved. Reports on the agenda required no action and were simply reviewed. On the supplemental agenda, the committee suspended the rules and approved OPM’s request for salary increases for 92 employees whose merit raises would place them over their grade maximums. Senator Dotson asked about several public safety medical examiner positions listed on the salary schedule, and staff indicated they were likely crime lab medical examiner roles. The meeting then adjourned.

Transcript Highlights:

• The Office of Budget at DFA has recommended the requested reallocation.
• The Office of Budget at DFA has recommended the requested reallocation.

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.

Transcript Highlights:

• The Office of Budget at DFA has recommended the requested reallocation.
• The Office of Budget at DFA has recommended the requested reallocation.

Keywords: 1204, all

Summary: The committee reviewed several personnel and appropriation items. Item C, a two-for-two position swap with no increase in total authorized positions and recommended by OPM, was approved. Item D, a Department of Higher Education request for South Arkansas College, added three authorized positions overall, including food service, public safety, housing, and project/program support roles, and 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; it was approved as well. The committee then considered Items F through O as continuations of previously approved or reviewed personnel actions into FY27. These included growth and surrender pool positions, various pay differentials, hard-to-fill and on-call differentials, a labor market adjustment for crime lab medical examiners, and continuation of several federal grant-funded positions at Commerce, Emergency Management, State Police, and Military Department. No questions were raised, and the block of continuation items was approved on a single motion. Reports were taken up with no action required and were simply noted as reviewed. On the supplemental agenda, the committee suspended the rules and approved Item A-1, which authorized salary increases for 92 employees whose merit raises would place them over their grade maximums. Senator Dotson asked about the public safety entries on the list, and staff indicated they were likely crime lab medical examiner positions. The meeting then adjourned.