Transcript Highlights:

• Yes, we can track the expenditure sources. Okay.
• Yes, we can track the expenditure sources. Okay.
• And this is where you Expenditures from ESA categoricals on any program.
• And then finally looking at the top expenditure categories, And then finally looking at the top expenditure
• Looking at the top expenditure categories... ...looking at the top expenditure categories for student

Summary: The committee first approved the March 9 and 10 minutes, then heard a presentation from the Arkansas Excellence in Teaching Fellowship Program featuring three third-grade teachers from Poyen, Drew Central, and Cabot, along with Department of Education Secretary Jacob Oliva. The teachers described the fellowship as a year-long collaboration among 23 merit-pay recipients from across the state, focused on sharing classroom strategies, data use, and professional support. Members asked about teacher experience, how the fellowship information is shared locally, the role of merit pay, and how teachers are addressing third-grade reading and retention concerns under the ATLAS assessment system. The teachers emphasized early intervention, relationships with students, small-group instruction, progress monitoring, and communication with families; they also described community supports such as churches, food backpacks, and local donations. Several members raised broader questions about poverty, trauma, social services, DHS involvement, and whether similar professional learning should be expanded to more teachers. Secretary Oliva said the fellowship is a small subset of a larger merit-pay program, that participation was voluntary, and that the state is working to improve literacy supports, clarity, and alignment across grades. He also said ATLAS results are now available to schools and families much faster than in the past, often within 24 to 72 hours, and that the state is using the data to identify at-risk students earlier and support intervention before retention decisions are made. The committee then moved to the adequacy/resource allocation presentation from the Bureau of Legislative Research. Staff explained that the report is part of the statutory adequacy review and focuses on state funding sources beyond foundation aid, including categorical and supplemental funds. They noted that districts and charters spent more than $7 billion in the 2025 school year, with roughly 49% from foundation funding and 51% from other sources over the last three years. The presentation outlined the four categorical funds—Alternative Learning Environment, English Learners, Enhanced Student Achievement, and Professional Development—describing their restricted uses, student-based funding formulas, and the ability of districts to transfer some money among categoricals while keeping it within allowable purposes. Staff said categorical funds account for about 4% of total spending, or less than $300 million, and reviewed superintendent feedback on whether those funds met district needs, with responses varying by category and district.

Transcript Highlights:

• <00:08:48.560> there Appropriations versus expenditures there Appropriations versus expenditures
• see in finance will have an expenditure see in finance will have an expenditure line<00:11:09.320
• Okay, so the only “does not provide funding” would only be in terms of covering expenditures.
• The only “does not provide funding” would only be in terms of covering expenditures.
• <00:25:24.600> into expenditure into expenditure into hb1<00:25:26.960> sometimes<00:25

Keywords: 928, house, all

Summary: The meeting was an introductory Division One budget briefing led by Legislative Budget Assistant staff Melissa Rollins and Jack Mullen. They explained staff roles and agency assignments within Division One, noting that Jack is taking over the General Government category while Melissa handles Categories 2 and 3, and that members can contact either staffer with questions. They also reviewed the upcoming budget calendar, including the governor’s budget presentation expected in mid-February, agency hearings beginning around February 17–20, a Division One deadline around March 26, and House Finance reporting deadlines in early April. A major portion of the discussion focused on how to read fiscal notes and the difference between expenditures and appropriations. Staff used sample language to explain that a bill may show an expenditure estimate without actually authorizing funding or new positions, and that a zero appropriation means the agency is not authorized to spend the estimated amount unless the bill is amended. Members asked questions about why a bill could show costs but still not authorize spending or hiring, and staff clarified that new positions require specific legislative authorization and classification detail. They also noted that many bills will have expenditure lines without appropriations, and that amendments may be needed if the committee wants to fund or authorize the program. The rest of the meeting walked members through the HB 1 and HB 2 tracking documents used by the division. Staff explained that HB 1 tracking sheets record additional agency requests not included in the governor’s budget, including requests that may be zero-net transfers, corrections, or new spending items, and that grayed-out items indicate actions already taken. They said HB 2 will be handled through a similar tracking process, with amendments routed through LBA staff and the Office of Legislative Services. Members were told that the division will review agency budgets, class lines, and proposed changes over roughly six weeks, with the goal of preparing a detailed change report for full House Finance.

Transcript Highlights:

• Additionally, revenues were $17.9 million and expenditures totaled $13.5 million.
• Additionally, revenues were $17.9 million and expenditures totaled $13.5 million.
• Program expenditures included one international trip and several trips within the United States, as well
• This slide presents program expenditures by This slide presents program expenditures by higher education
• Expenditures for UALR totaled just over $8 million, while expenditures for Philander Smith and UAPTC

Summary: The Legislative Joint Audit Committee met on February 13, 2026, and first adopted the January 9, 2026 minutes and then adopted reports from its executive and standing committees. The Executive Committee reported on scheduled audits, denied a special report request concerning the I-owned fire department, approved questions to the Arkansas Department of Health about Title V sexual risk avoidance education funds, authorized the Office of Property Risk to hire a CPA for its annual audit, and asked staff to gather information on circuit judge caseload assignments in Benton County. The Counties and Municipalities Committee reported progress on delinquent private water and sewer audits, including reinstatement of 19 entities after required reports were filed and 59 of 64 delinquent 2023 entities submitting reports. It also noted that Adona was now in substantial compliance with municipal accounting law, while officials from Denning and Gum Springs appeared regarding noncompliance. Of 109 current reports reviewed, 15 were referred to prosecutors and the Attorney General, two were certified to the Governmental Bonding Board, 94 were filed, and 15 were deferred. The Education Institutions Committee filed 31 audit reports, including one for Cedarville School District that was referred to the prosecuting attorney, Attorney General, and Governmental Bonding Board, and the State Agencies Committee filed 10 reports involving issues at DHS, Parks, Heritage, and Tourism, Corrections, and Veterans Affairs. The committee also heard a Medicaid Subcommittee report that included presentations from DHS, the Office of Medicaid Inspector General, and the Attorney General’s Office on their Medicaid-related roles. In special reports, Legislative Audit presented a review of Cleburne County’s library expenses, finding more than $80,000 in unauthorized or questionable disbursements, including purchases lacking a documented business purpose, undocumented disbursements, and possible improper fuel expenses; the matter was referred to the 16th Judicial District Prosecuting Attorney and the Attorney General. The committee also reviewed the Charles W. Donaldson Scholars Academy at UALR, where auditors found scholarship awards to ineligible students, numerous disbursement-processing exceptions, and that the program had ceased in 2024 with remaining funds returned to the school districts. After discussion, the committee filed both special reports and adjourned, with the next meeting set for March 12-13, 2026.

Transcript Highlights:

• Additionally, revenues were $17.9 million and expenditures totaled $13.5 million.
• Next up is the special report for the review of scholarships awarded, expenditures, and grants received
• This slide presents program expenditures by higher education institution for the life of the program,
• Expenditures for UALR totaled just over $8 million, while expenditures for Philander Smith and UAPTC
• the expenditures were improper or not because the scope was so broad.

Summary: The Legislative Joint Audit Committee met on February 13, 2026, and first adopted the January 9, 2026 minutes. It then received and adopted reports from the Executive Committee, the Standing Committee on Counties and Municipalities, the Standing Committee on Education Institutions, the Standing Committee on State Agencies, and the Medicaid Subcommittee. Those reports covered audit follow-up items, delinquent private water and sewer audits, municipal accounting compliance issues, education audit findings, state agency audit findings, and a Medicaid oversight presentation. Several reports were filed after discussion, and in multiple cases agencies or local officials were present to answer questions about repeat findings or compliance concerns. Among the notable audit matters, the committee reviewed a Cleburne County library audit that found more than $80,000 in unauthorized or questionable disbursements, including purchases that appeared personal in nature and improper fuel expenses. The library director had been placed on leave, later charged with felony theft of property and abuse of office, and the matter was referred to the prosecuting attorney and Attorney General. The committee also heard a special report on the Charles W. Donaldson Scholars Academy at the University of Arkansas at Little Rock, which found scholarship ineligibility issues and numerous disbursement-processing exceptions, while noting that the program had ended in 2024 and remaining funds were returned to the school districts. During the state agency report, Legislative Audit described findings at DHS, Parks, Heritage, and Tourism, Corrections, and Veterans Affairs, including improper benefit payments, a cashed warrant by someone other than the intended payee, missing receipts, unauthorized fuel card purchases, and payroll and overtime issues. The committee filed that report after agency representatives responded to questions. The meeting ended with the filing of the Cleburne County and Donaldson Scholars Academy reports, and the next committee meeting was announced for March 12-13, 2026.

Transcript Highlights:

• Through January 31, KCI's expenditures were $5.8 million, with revenues of $6.8 million.
• And can you explain to me maybe what that difference is in the expenditure income budgeted for?
• Currently, their revenues are exceeding expenditures by a million dollars, but farming season is soon
• by a million dollars but expenditures by a million dollars but farming<00:03:03.799> season<00
• <00:04:08.840> through credits total expenditures through credits total expenditures through

Keywords: 958, all

Summary: The Budget Review Subcommittee on Justice, Public Safety, and Judiciary heard an update from the Department of Corrections on Kentucky Correctional Industries (KCI), sentence-credit payments for program completion, and the expansion of the Little Sandy Correctional Complex. Department officials said KCI, the department’s long-running re-entry program, operates 15 industries in 11 institutions, employs more than 400 inmates and 37 staff, and had $5.8 million in expenditures against $6.8 million in revenues through January 31. Members asked about inmate pay, the role of the Prison Industries Enhancement Certification (PIE) program, and whether KCI generates profit; the department said it aims to break even while supporting state government, with PIE participants earning prevailing wages and some programs offering certificates tied to post-release employment opportunities. The subcommittee also reviewed the budget-authorized sentence-credit program for county jails. Officials reported 37,300 program completions in fiscal year 2024 and, through January, $6.128 million paid for 90-day sentence credits and $1.6548 million for 60-day credits, with total county jail expenditures of $8.1 million and 67 jails participating. They said additional participation would require more funding and that they do not expect many more jails to join, though attendance and population levels can affect costs. Members asked how jails opt in, whether there are added costs, how inmate earnings are handled, and whether deductions are made for child support or victim compensation; the department said jails apply through an approved program matrix, inmate earnings are tracked in individual accounts, and required deductions are made when ordered. Questions from members focused on re-entry outcomes and program structure. Officials said evidence-based programming and employment opportunities are major contributors to lowering recidivism, and they cited a recent recidivism rate of 30.8 percent, down about 1 percentage point, while noting they would provide additional trend and savings data later. The department also clarified that adult education and GED programming are separate from KCI and are handled by a different education division. For the Little Sandy expansion, officials said the project remains on schedule for completion on June 25, 2025, with inmate transfers expected to begin at about 50 per week and roughly 200 additional staff eventually needed; they said hiring is being phased in as inmate population increases. The committee asked for the total construction cost of the expansion, which the witnesses said they did not have at the meeting and would report back. The meeting adjourned with the next meeting set for February 18.

Transcript Highlights:

• We also assess Minnesota's second KRD, expenditure framework, at AAA.
• appears that our um State expenditures appears that our um State expenditures are<00:22:27.200><
• <00:24:12.679> side the blue line on the expenditure side the blue line on the expenditure
• decline and if we left expenditures decline and if we left expenditures alone<00:24:25.399> as
• <00:27:12.039> they'll we don't change expenditures they'll we don't change expenditures they'll

Keywords: 1187, senate, all

Transcript Highlights:

• We're going to do our tax expenditure report, and then, Mr.
• We'll Maggie Klug: start with some background on tax expenditures, why these tax expenditure assessments
• It does not have an expenditure cap.
• However, it does not have an expenditure cap.
• I think it's a snapshot in time of expenditures.

Transcript Highlights:

• The increase in expenditures is due largely to the increase in Medicaid funding.
• These programs represented 67% of the state's total federal expenditures.
• The expenditures that we were reporting in ASIS and the expenditures she reported on 696 didn't equal
• The expenditures that we were reporting in ASIS and the expenditures she reported on 696 didn't equal
• benefits, recycling and disposal costs, and other related expenditures.

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:

• Yes, we can track the expenditure sources. Okay.
• In 2025, 94% of EL categorical expenditures were spent on salary.
• In 2025, 94% of EL categorical expenditures were spent on salaries and benefits.
• My question is on slide 26, the top five ESA categorical expenditure categories.
• Looking at the top expenditure cost...

Keywords: 1204, all

Summary: The Senate and House Education Committee approved the March 9 and 10 minutes and then heard a presentation on the Arkansas Excellence in Teaching Fellowship Program from Department of Education staff and three third-grade teachers from Cabot, Poyen, and Drew Central. The teachers described the year-long fellowship for high-performing merit pay recipients, saying it provided collaboration with educators across the state, shared resources, and ideas they brought back to their districts. Members asked about the teachers’ experience levels, how they shared information locally, and whether the program should be expanded to more teachers and districts. A major focus of the discussion was third-grade reading, the new ATLAS testing system, and the state’s third-grade retention law. The teachers said they do not teach to the test, but use standards, data, interventions, small groups, and relationships to help students grow. They described progress monitoring throughout the year, early screening in K-2, and interventions such as before-school tutoring, RTI meetings, and co-teaching. One teacher reported that six students in a small group improved 10 to 15 points on ATLAS, and another said a student who started the year reading four words per minute improved significantly with targeted support. Secretary Jacob Oliva said the state is trying to create clarity and alignment through Arkansas Learns, science-of-reading support, literacy coaches, and faster test-result turnaround, with student scores now available within about 24 hours and district-level results expected later in the summer. Members also asked about student poverty, trauma, ACEs, DHS involvement, social workers, community supports, and the role of counselors. The teachers emphasized that relationship-building is essential, especially for students facing unstable home situations, and described local supports such as backpack food programs, church donations, fire department incentives, and family assistance. Oliva said the fellowship was intentionally small in its first year because it targeted top-tier merit pay recipients, but he expects participation to grow. He also said merit pay and fellowship eligibility spans many grade levels and subjects, including kindergarten and hard-to-staff areas, and that D and F schools receive state literacy coaches. No additional committee votes or formal actions were taken beyond approving the minutes.

Transcript Highlights:

• Since the Governor's budget, we are seeing higher expenditures, which are related to higher caseloads
• For example, the 2024 Budget Act was based on enrollment and expenditure data through January 2024.
• So we are thinking about ways to look at expenditures, what are some of the high-cost drugs in their
• The CCS budget allocations are intended to reflect the counties' historical expenditures and caseload
• positions and expenditure authority for 6.3 million total funds.

Keywords: 988, house, all

Transcript Highlights:

• So there’s two projected expenditures there, both the revenue side and the expenditure side, I assume
• projected expenditures as determined and projected expenditures as determined and then<01:31:13.800><
• why is there no projected expenditures why is there no projected expenditures<01:31:35.159> on
• Representative Smith: ...after 105% of projected expenditures.
• So there's two projected expenditures there, both the revenue side and the expenditure side, I assume

Keywords: 1183, house

Transcript Highlights:

• Since the Governor's Budget, we are seeing higher expenditures, and these are really related to higher
• For example, the 2024 Budget Act was based on enrollment and expenditure data through January 2024.
• , so we'll The allocations are based on, first, each county's average expenditures.
• The BCP requests 33 permanent positions and expenditure authority for $6.3 million total funds.
• The BCP requests 33 permanent positions and expenditure authority for $6.3 million total funds.

Summary: The committee heard a budget oversight hearing on the Department of Health Care Services, focusing first on the overall Medi-Cal budget and a March General Fund loan to cover a current-year shortfall. DHCS said the 2025-26 budget proposal totals $193.4 billion, with Medi-Cal projected at $188.1 billion total funds and $42.1 billion General Fund, driven by higher enrollment, pharmacy costs, managed care growth, and costs tied to eligibility expansions and the COVID-era redetermination unwinding. The department said the $3.44 billion loan was needed to manage cash flow and ensure timely payments to providers and plans, while the LAO noted Medi-Cal’s cash-basis budgeting creates volatility and that more detailed estimates would come with the May Revision. Members discussed federal Medicaid threats, the need for transparency on cost drivers, and the impact of pharmacy spending, long-term care, and immigration-related coverage expansions. The second major topic was family health programs, including California Children’s Services, the continuous coverage unwinding, and opioid settlement fund spending. DHCS described CCS funding methodology changes, ongoing county stakeholder work, and a delayed rollout of CCS monitoring and oversight until July 1, 2025, while county representatives and advocates argued the program is underfunded and asked for more technical assistance and a delay in implementation. On the unwinding, the department explained that federal redetermination flexibilities helped maintain coverage after the pandemic, but the Governor’s budget proposes ending them at the end of June 2025; advocates urged making the flexibilities permanent to avoid coverage losses. For opioid settlement funds, DHCS and Finance said the budget increases funding for naloxone distribution while reducing other harm-reduction spending based on updated settlement revenues, prompting criticism from members and public commenters who argued the change would weaken effective harm-reduction programs. The hearing also included an update on Proposition 35 implementation. DHCS said the voter-approved measure continuously appropriates MCO tax revenues beginning in 2025, with up to $4.6 billion annually available for specified Medi-Cal and provider investments in 2025 and 2026, but implementation depends on consultation with the required stakeholder advisory committee. The department and LAO noted uncertainty about future federal rules affecting the MCO tax after 2026. Public testimony largely supported maintaining Medi-Cal expansions, protecting immigrant coverage, preserving harm-reduction funding, and increasing support for community health workers, pediatric dental care, and CCS county administration. No votes were taken during the portion of the hearing provided.

Transcript Highlights:

• The expenditure process that's going on.
• Um, one is I think the expenditure that was made last week was a little over a million dollars.
• Um, one is I think the expenditure that was made last week was a little over a million dollars.
• Um, one is I think the expenditure that was made last week was a little over a million dollars.
• I think the expenditure that was made last week was a little over a million dollars.

Keywords: 1187, senate, all

Transcript Highlights:

• Revenues is, you know, revenues, but expenditures is actually what's gone out the door.
• uh expenditures will be. uh expenditures will be.
• . expenditures. expenditures.
• is actually what's gone out expenditures is actually what's gone out the<00:32:38.400> door.
• that that expenditure should be reviewed.

Keywords: 1189, house, all

Summary: The committee held a work session on House Bill 592, which concerns regional conservation and energy resources planning for habitat strongholds and wildlife corridors, and a commission to study transferring ownership of the Winnipesaukee River Basin Program to another authority. Jason Stock of the New Hampshire Timberland Owners Association said his group was fine with the bill as printed, especially after Senate language clarified that habitat stronghold designations are for information gathering and not regulatory purposes. Ted Diers of the Department of Environmental Services strongly supported the bill’s Winnipesaukee River Basin provisions, saying the state’s role in operating the wastewater system is outdated and that the communities are now capable of taking more control; he also supported creating a higher-level engineering/director position to oversee aging infrastructure and help manage a possible transition. Committee members asked about the facility’s location, capacity, costs, staffing, the possibility of private operation, the commission’s membership, and whether the six-month study timeline was realistic. Diers said there would be no state savings beyond administrative time, that the communities already pay the costs, and that a report in six months should provide useful next steps even if it would not resolve everything. The chair closed the work session on HB 592 and announced a brief recess before later action, while a member indicated interest in proposing an amendment to change the commission’s membership.

Transcript Highlights:

• what the total expenditures are of your city?
• Total expenditures for general fund were just over $100,000.
• The other one was in terms of advertising expenditures.
• And so the expenditures for advertising, which appear to be... ...greater than the average expenditures
• However, all of those credit card expenditures are listed line items.

Summary: The committee approved the prior minutes and then received a series of audit and compliance updates. Staff reported on delinquent private water and sewer reports, delinquent 2013-2023 water reports, and several municipal accounting code noncompliance cases. Denning and Gum Springs were recommended to be removed from the 60-day clock after staff visits showed improved records, while Fargo, Lead Hill, Almy, Jericho, Haynes, Biggers, Gilmore, and Holly Grove were discussed for repeat findings involving missing audits, poor bookkeeping, unpaid or misapplied street funds, deficit balances, and other accounting deficiencies. Several of these entities were given additional time or had reports filed without objection, while others were deferred for later review. Fargo’s mayor said the town had been understaffed and was working to improve its accounting systems; the committee voted to defer the matter to the August meeting. Lead Hill’s mayor described efforts to complete overdue water audits and improve office procedures, and the committee also postponed action for 60 days. Almy’s mayor and recorder-treasurer were present, and the committee placed the town on the 60-day clock for repeat accounting issues. Biggers and Gilmore both acknowledged long-running audit problems and said they were working with auditors and the IRS; their reports were filed. Holly Grove’s treasurer said she had only recently taken the position, and that report was filed as well. The committee spent considerable time on the street-fund misuse cases for Jericho and Haynes. Jericho was found to have exceeded the statutory threshold tied to fines and costs, with staff noting the town had since become current on its repayment plan; the committee deferred the report to September. Haynes was also behind on its repayment plan for street funds, with staff saying the town had recently made up the shortfall and was current as of the meeting, but the committee still deferred the report to September. Members and staff also discussed how the speed-trap law is applied, whether certain fines and costs count toward the threshold, and the role of the prosecuting attorney in deciding whether to take further action. The committee then reviewed a special report on the Pulaski County Regional Solid Waste Management District, which had six findings involving board approval of payroll and contracts, credit card documentation, vehicle and cell phone use, competitive bidding, electronic funds controls, and unusually high advertising spending. District Director Craig Douglas said the board had delegated some authority, that receipts were missing during a temporary staffing gap, and that advertising was needed to educate the public; he also defended the sale of trailers and other equipment as a way to exit the trailer business. Several members questioned the explanations and the low resale value of equipment, but the committee ultimately deferred the report to September. The meeting also included a recognition of accounting students interning with audit staff and a final set of actions on deferred water and sewer reports: 11 were filed, seven were deferred for lack of proper responses, and a private report on Shannon Hills Water, Sewer, and Fire Department was noted as involving misappropriation by an office manager and inadequate internal controls.

Transcript Highlights:

• Now, shifting to state expenditures on recreational boating activities.
• RCO, Parks, DFW, and DNR all reported infrastructure and access expenditures.
• The appendix has interactive dashboards with detailed revenue and expenditure data.
• How do program operators determine and report their expenditures?
• The lodging tax expenditures annual report will be moved to our September meeting.

Summary: The meeting began with JLARC’s biennial executive committee elections. After confirming a quorum, members unanimously elected Representative Pollet as chair, Senator Wagoner as vice chair, Representative Orcutt as secretary, and Senator Solomon as assistant secretary for the 2025-27 biennium. The committee also approved the May 14 meeting minutes unanimously. Chair Pollet then outlined a commitment to more member input on audit scope and coordination with the State Auditor’s Office. Staff presented a preliminary report on Washington State recreation boating programs. They reported that six agencies administer boating-related activities, that the state collected about $108 million in boating-related revenue in 2021-23, and that $86 million was spent, mostly on infrastructure and water access, environmental protection, boater safety, and marine law enforcement. Staff said Washington’s boating laws and programs are broadly similar to other states and noted that the final report is expected in September. JLARC then reviewed several tax preferences. For natural gas used as a transportation fuel, staff said the preferences reduce fuel costs but did not meet emissions-reduction targets because fewer vessels and vehicles converted to natural gas than expected; staff recommended continuing some exemptions and modifying reporting requirements. For travel agents and tour operators, staff said the preference continues to provide tax relief, but large beneficiaries’ savings are rising while small beneficiaries’ use is declining, leading to recommendations to continue the small-business rate and add or revise performance metrics. Staff also reviewed a nonprofit low-income housing property tax exemption, concluding it helps developers build homes as intended but that the performance metric should better reflect housing outcomes; they recommended the legislature decide whether to continue or modify it. Other reviews covered multipurpose senior citizen centers, disabled veteran adapted housing, trade convention attendance, agricultural fertilizer and seed wholesaling, hazardous substance tax treatment for pesticides, and silicon smelter energy preferences, with recommendations ranging from continuation to expiration depending on whether the stated objectives were met. The committee then adopted the final cannabis market study for distribution. Staff reported that Washington businesses produced two to three times more cannabis than retailers sold in 2023, and that inaccurate and incomplete reporting limits the Liquor and Cannabis Board’s ability to regulate the market. The board said it concurs with the recommendations, including developing a plan for a new data system and considering broader social equity options. Finally, staff presented the proposed final report on Department of Health oversight of hospital data reporting, inspections, and complaints. Staff said DOH was late on most acute-care hospital inspections, had not fully verified third-party inspection standards, and did not adequately review adverse event correction plans or assess language access barriers in its complaint system. DOH said it concurs with all six recommendations and has already made some transparency improvements, including a public dashboard for adverse event reporting.

Transcript Highlights:

• I do believe it is on per pupil expenditures in 24 to 25 we.
• Actually took a decrease in per pupil expenditures by about 60 dollars, with the biggest majority of
• Going back to the slide on the per pupil expenditure.
• My colleague and I were both noting the shift in where the expenditure lies between instructional expenditure
• and administrative expenditure.

Keywords: 914, all

Transcript Highlights:

• So I'll call your attention to the definition of a qualified expenditure at the bottom of page 7.
• You can only apply for certification in the year where you made the expenditure.
• Any qualified expenditure for the film tax credit must be subject to taxation in New Mexico.
• and qualified expenditures moving forward?
• and qualified expenditures moving forward?

Keywords: 996, all

Transcript Highlights:

• The increase in expenditures is due largely to the increase in Medicaid funding.
• These programs represented 67% of the state's total federal expenditures.
• Did represent about 67% of our total federal expenditures as well.
• The expenditures that we were reporting in ASIS and the expenditures she reported on 696 didn't equal
• benefits, recycling and disposal costs, and other related expenditures.

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 increase in expenditures is due largely to the increase in Medicaid funding.
• These programs represented 67% of the state's total federal expenditures.
• And I’m even looking on, let’s see, page 51, it says the total expenditures...”
• The expenditures that we were reporting in ASIS and the expenditures she reported on 696 didn't equal
• benefits, recycling and disposal costs, and other related expenditures.

Summary: The committee met to adopt prior minutes and reports from its executive and standing committees, including counties and municipalities, educational institutions, and state agencies. Those reports covered routine audit activity, delinquent private water and sewer audits, municipal accounting compliance issues, education audit findings, and several state agency audit items. The committee also reviewed and adopted the State of Arkansas annual comprehensive financial report for fiscal year 2025 and the related single audit report, both presented by Legislative Audit staff. The state financial report showed unmodified opinions on the state’s financial statements and described total assets of about $41.9 billion and liabilities of about $11.1 billion, along with retirement system assets of $39.9 billion and a net pension liability of $9 billion. Two material weaknesses were identified: insufficient internal controls at the Office of State Technology to monitor threats and unauthorized access, and a Division of Workforce Services methodology change for unemployment-related estimates that was not properly documented or approved. The single audit covered $12.4 billion in federal awards across 469 programs, with 16 major programs reviewed; it resulted in 33 findings, 14 with questioned costs totaling $16.6 million, and qualified opinions for the Summer EBT program, the Coronavirus Capital Projects Fund, and the Child Care Development Fund cluster. Members questioned agency officials in detail about the Summer EBT questioned costs, DHS unresolved findings, broadband grant documentation, cyber security controls, workers’ compensation liabilities, and child care funding and reporting. DHS explained that the Summer EBT issue involved drawing federal funds in advance rather than as benefits were redeemed, and said the process has been corrected. Broadband officials said the questioned $6.6 million reflected documentation-detail disagreements across many invoices rather than missing payments. OST officials described new logging, endpoint detection, and phishing-training efforts, and DFA and Education officials addressed specific audit findings and corrective actions. The committee ultimately moved to hold the two large statewide reports over until the August meeting for further review, with discussion continuing on whether to release some agency staff in the meantime.