FINANCING STATE PROGRAMS

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1 FINANCING STATE PROGRAMS Budget Definitions Revenue Collections Funding State Agencies and Institutions General Revenue Funded Programs Bureau of Legislative Research 1

2 Sections Pages Definitions / Defining Terms Source of Revenues Methods of Funding The Revenue Stabilization Act General Improvement Fund Selected Agencies/Institutions Number of Authorized Positions

3 THE ARKANSAS BUDGET HOW BIG IS IT? WHERE DOES IT COME FROM? WHO GETS THE MONEY? 3

4 4

5 GENERAL REVENUES Funds received by the State from fees and taxes levied on the general population of the state. The proceeds are not designated to be used for a particular purpose but are allocated every year by acts of the General Assembly. Interest earnings are retained in the State Treasury. 5

6 SPECIAL REVENUES Taxes and fees in the State Treasury which are designated or earmarked by law to be used for a particular purpose. The State Treasury retains most of the interest earnings. 6

7 FEDERAL REVENUES Monies in the State Treasury received from the U.S. government either as project grants-in-aid or as reimbursement for eligible expenses. The Federal government retains any interest earnings 7

8 TRUST FUND REVENUES Funds in the State Treasury that are received by the State in which the State is a trustee and is acting in a fiduciary capacity. Trust funds retain their interest earnings. 8

9 CASH FUND REVENUES Funds received by the State which are not required by law to be deposited into the State Treasury. Cash funds retain their interest earnings. 9

10 Revenue Collections by Source 10

11 ARKANSAS REVENUE FISCAL YEARS (Millions) $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $ FY2005 (Millions) GR $4,757 Special $1,561 Federal $3,769 Trust/Other $2,392 Cash $3,557 General Revenues Special Revenues Federal Funds Trust and Other Cash Funds FY2015 (Millions) GR $6,522 Special $1,884 Federal $6,646 Trust/Other $3,337 Cash $2,985 11

12 10 Year Percent Change 80% 70% 60% 50% 40% 30% 20% 10% 0% -10% -20% PERCENT CHANGES IN REVENUE From Fiscal Year 2005 to

13 FUNDED BUDGET FY 2016 $27.5 Billion* Trust and Other $5,185,621,197 19% General Revenue $5,360,999,090 19% Special $1,531,771,292 6% Cash $6,161,013,772 22% Federal $9,224,015,922 34% Funded Budget represents revenues by source and include budgeted fund balances and total budgeted cash and federal appropriations. The funded budget cash and federal numbers reflect what Institutions and Agencies budgeted which is often the total cash and federal authorized appropriation and that will be more than the actual federal receipts and cash collected and expensed at the end of the Fiscal Year. 13

14 Methods of Funding Available DEDICATED SOURCE Special Revenue Federal Funds Cash Funds Trust Funds Non Revenue General Revenue Revenue Stabilization Act (RSA) General Improvement Fund 14

15 Methods of Funding Available DEDICATED SOURCE Special Revenue Federal Funds Cash Funds Trust Funds Non Revenue 15

16 TOTAL STATE EXPENDITURES FY2015 $23.2 Billion Trust and Other Funds $7.1, 31% Cash Funds $3.1, 13% General Revenue $5.0, 21% Special Revenue $1.3, 6% Federal Revenue $6.7, 29% (Billions) 16

17 SPECIAL REVENUE EXPENDITURES FY2015 $1.38 Billion Boards and Commissions $17.8, 1% Other Various State Agencies $ % State Police $19.3, 1% Highway Dept $ % Health Dept $19.5 1% Agriculture Dept $21.7, 2% Parks and Tourism $27.8 2% County Aid $ % Municipal Aid $ % DFA - Disbursing $64.4 5% Game &Fish $72.7 5% Millions 17

18 FEDERAL REVENUE EXPENDITURES FY2015 $6.7 BILLION Other Agencies $228,897,779 3% Highway and Transportation $492,527,487 7% Economic Development $33,289,934.5% Emergency Management $32,750,433.49% Health Department $160,813,331 2% Education $534,000,433 8% Department of Human Services $5,171,592,173 78% 18

19 CASH FUND EXPENDITURES FY2015 $3.1 BILLION Boards and Commissions $14,635,508.5% Constitutional Offices (Land, Auditor etc.) $48,907,126 2% Workforce Services Department $305,635,210 10% Other Various State Agencies $128,880,992 4% Institutions of Higher Education $2,632,087,281 84% 19

20 TRUST & OTHER EXPENDITURES FY2015 $7 BILLION DHS $719,229, % Public School Fund $703,285, % Workforce Services $125,781, % Health Department $105,799, % Other Agencies $445,897,591 6% Constitutional Officers/ State Central Services $334,446, % County Aid $236,220, % Treasurer $2,280,014, % Public Employee and Teacher Retirement $1,513,703, % Highway and Transportation $191,818, % DFA $746,473, % 20

21 Methods of Funding Available General Revenue and Revenue Stabilization Act (RSA) 21

22 Taxes levied on the General Population with no restrictions on usage by law. 22

23 FY2016 Off-the-Top Deductions 23

24 General Revenue (State Taxes Less Off The Top Deductions) 24

25 ACT 311 of 1945 The Revenue Stabilization Act 25

26 REVENUE STABILIZATION ACT (RSA) Arkansas Present System of Tax Allocation and distribution is as archaic as the old tasseled surrey - - complex, confusing, inefficient. The system itself is a burden on the taxpayers. - Governor Ben Laney, 1945 I propose as our next step that our archaic and hydra-headed system of over one hundred state funds be forever eliminated, Governor Ben Laney,

27 What It Did»Removed the dedication from major broad-based taxes»provided a fund distribution from a pool to various operating funds»allowed the legislature to set their funding priorities every year»prevented deficit spending»reduced funding instability due to changing economic conditions»assured agencies of even cash flow 27

28 What It Also Did»Permitted the approval or mandate of a program without providing funds to implement it, raising unrealistic expectations»allowed the Governor to manipulate financing and timing of legislative enacted initiatives»permitted agencies and the Governor to determine programmatic priorities within funds and disregard legislative intent»the legislature does not specify which programs are in which priority. The Governor and his agency directors decide priorities within the funds. 28

29 What s this A, B and C Stuff? 29

30 Net General Revenue Available for Distribution Revenue Stabilization Law First Fully Fund A Then any remaining funds flow to B Then any remaining funds flow to C 30

31 The Steps The Legislature, with consultation with the Governor: Determines the Maximum General Revenue support to be distributed over the next year Determines the maximum amount each general revenue fund is to receive from general revenues for the next year Determines the number of priority categories (A,B,C ) Sets the minimum level of support required for each general fund and designate it as A Sets the next level of support for each fund and designates it as the next priority (A-1 or B) Continues the steps until the maximum level is reached 31

32 Page 1 of 2 FY2016 Condensed Revenue Stabilization Allocation Schedule 32

33 Page 2 of 2 FY2016 Condensed Revenue Stabilization Allocation Schedule 33

34 RSA PRIORITIES The legislature does not specify which programs are in which priority. The Governor and his agency directors decide priorities within the funds. 34

35 Methods of Funding Available General Improvement Fund 35

36 36

37 GENERAL IMPROVEMENT 90TH SESSION PROJECTS ACCOUNT Revenue / Less Supplemental Transfers, Mandatory Obligations and Distributions / Surplus General Improvement Fund (GIF) Distribution Act 1147 of For the Biennium Total Funding for Biennium as of September 2015 $393,608,702 Less 90th Session Supplemental Requests Act 289 of 2015 Dept. of Correction - Holiday Pay $11,000,000 Act 287 of 2015 Dept. of Correction - County Jail Reimbursements $6,000,000 Total 90th Session Supplemental Requests $17,000,000 Less: "Off the Top" Shared Mandatory Obligations - Act 1147 of 2015: Dept. of Correction - Lease Payments $13,000,000 Dept. of Human Services - Medical Services - Medicaid Biennial Funding Shortfall $90,000,000 Dept. of Education - Facilities Funding Shortfall $40,000,000 AEDC - Quick Action Closing Fund $20,000,000 Department of Education - Computer Science Initiative $5,000,000 Education Pre K Programs $3,000,000 Department of Correction Additional Beds (2 Years) $12,218,010 Department of Community Correction Trans. Beds & Add'l. Parole/Probation $13,000,000 Department of Community Correction - Court Accountability Grants $2,800,000 County Jail Reimbursement- Regional County Detention Facilities $4,380,000 Total Shared Mandatory Obligations Funding $203,398,010 Legislative/Executive/Rainy Day/Economic Development - Act 1147 of 2015: Executive Discretionary Funding $20,000,000 Legislative Projects Funding $20,008,480 Rainy Day Set-Aside ($50 Million Authorized in Act plus other various transfers) $62,374,027 Economic Development Set-Aside $30,000,000 Ending Balance (Surplus) - 90th Session Projects Account $40,828,185 *As of September 1,

38 1/2 Interest Earnings $2.4 M Recovered Fund Balances $6.6 M Excess Old GIF Projects $.8 M General Revenue Allotment Reserve Fund $213 M Previous GIF Session Account/Balances Budget Reserve Fund $109.7 M Insurance Department Funds $51.1 M Attorney General Settlement $ $14.4 M General Improvement Fund Funded First Funded Second Funded Third Funded Last Set Aside Projects $203.4 M Governor s Discretionary Biennium $20M Legislative Biennium $20M Rainy Day $50M Economic Develop. Set Aside $30M 38

39 Millions General Improvement Fund Total Income and Total Projects Funded $900 $800 $700 Total GIF Income Total Projects Funded $600 $500 $400 $300 $200 $100 $

40 What your Arkansas tax dollar pays for 44 Education Kindergarten through 12 th Grade 27 Department of Human Services and Health Department 14 Higher Education Institutions 8 Correction Dept. and Community Correction Dept. 7 General Gov t & Local Aid Excludes off the top deductions such as refunds, claims, debt services, constitutional offices, etc. 40

41 GENERAL REVENUE PROGRAMS The Big Six: 1. Education Public School Fund 2. Higher Education Institutions 3. Department of Human Services 4. Department of Correction 5. Department of Community Correction 6. Health Department 41

42 NET GENERAL REVENUE DISTRIBUTED FISCAL YEAR 2015 $5.058 Billion $6,000,000,000 $5,000,000,000 $4,000,000,000 $5,058,907,248 Other Includes $12M Rainy Day Higher Ed Includes $7M Rainy Day (UAMS) Chart does not include $191.6M Surplus $3,000,000,000 $2,229,203,429 $2,000,000,000 $1,000,000,000 $0 $1,253,022,610 $322,311,296 $76,934,087 $726,562,404 $85,301,946 $365,571,476 42

43 CHANGE IN GENERAL REVENUE DISTRIBUTION 2010 THROUGH 2015 FISCAL YEARS 30.0% 25.0% 5 YEAR BIG SIX % GROWTH Does not include one time funding 27.9% 23.7% 20.0% 15.0% 17.0% 16.0% 16.8% 10.0% 5.0% 0.0% -5.0% 3.7% -2.9% 43

44 Education Kindergarten through 12 th Grade (K-12) Doomsday Clause If the Chief Fiscal Officer determines there are not adequate resources in Educational Adequacy Fund and Public School Fund Account. All other General Revenue Budgets proportionally reduced by amount needed.

45 Public School Revenue Sources 2015 State Funds $2,537.5 M Federal Funds $578.7 M Local Funds $1,925.2 M 36.3% 47.9% 10.9% Misc. Funds $256.7 M 4.8% $5,298,113,053 in 236 Districts

46 PUBLIC SCHOOL FUND F i s c a l Y e a r Desegregation Educ Excellence Gen Revenue Estimated FY16 Total is $2.43 Billion Public School Fund includes State Library grants and Career Education funding for technical and adult education programs. s 2010 $0 Millions $500 $1,000 $1,500 $2,000 $2,500 General Revenue for the Public School Fund has grown from $1.8 billion in FY05 to $2.1 Billion in FY2015. This does not include funding from the Educational Adequacy Fund which is transferred to the Public School Fund as needed. The Educational Excellence Trust Fund set a benchmark of 14.14%, which is applied against actual sales and use tax collections of the previous fiscal year. Under this formula in FY2015 over $297.5 million was distributed to Public Schools and Higher Education Institutions, of which $199.7 million is distributed to Public Schools. Public School Desegregation. In 1989, the state settled a lawsuit with the Pulaski County school districts. The first expenditure occurred in FY89 and since then payments have totaled over $1.3 billion. In November 2013, a new Settlement released the State from this obligation were the state will continue to make Desegregation payments of $65.8 million that will end in FY2018.

47 EDUCATIONAL ADEQUACY FUND $600,000,000 $500,000,000 $460,221,761 $400,000,000 $300,000,000 $200,000,000 $100,000,000 $ Estimates for FY2016 of $477.6 million and for FY2017 of $495.9 million are based on the February 1, 2016 Official Forecast.

48 MAJOR STATE FUNDED EDUCATIONAL PROGRAMS Foundation Funding» 98% Actual Collection Adjustment Categorical Funding» National School Lunch (NSL)» Alternative Learning Environment (ALE)» English Language Learner (ELL)» Professional Development Public School Academic Facilities Funding

49 Foundation Funding Rates Fiscal Year Foundation Funding Rate per ADM 2005 $5, $5, $5,662 Enhanced State Foundation Funding Rate per ADM* 2008 $5,719 $ $5,789 $ $5,905 $ $6, $6, $6, $6, $6, $6, $6,646

50 FOUNDATION FUNDING 98% ACTUAL COLLECTION ADJUSTMENT FISCAL YEAR 98% URT ADJUSTMENT ACTUAL EXPENDITURES $22,446, $28,937, $34,191, $28,937, $17,448, $17,489, $19,448, $17,751,282

51 CATEGORICAL FUNDING K-12 (Page 1 of 2) 1. National School Lunch Funding (NSL) Districts with 90% or greater of total students qualified as NSL students received $1,549 per NSL student Districts with 70% but less than 90% of total students qualified as NSL students received $1,033 per NSL student Less than 70% of total students qualified as NSL students received $517 per NSL student 2. English Language Learner (ELL) English Language Learner (ELL) funding provides $317 per student in the current school year to help school districts educate students with limited English language proficiency.

52 CATEGORICAL FUNDING K-12 (CONTINUED Page 2 of 2) 3. Alternative Learning Environment (ALE) Alternative Learning Environment (ALE) funding provides $4,383 per full-time equivalent (FTE) students in the previous school year to help school districts educate students who need different learning environments due to social or behavioral factors that make learning difficult in a traditional classroom. 4. Professional Development (PD) Professional Development (PD) funding provides up to $32.50 times the school districts previous school year ADM. The Department of Education is authorized to retain up to $4 million for statewide PD efforts and therefore, the school districts typically receive about $26.50 per Average Daily Membership for Professional Development.

53 PUBLIC SCHOOL ACADEMIC FACILITIES FUNDING In addition to Foundation Funding and the Categorical Programs, the State has allocated $1.048 billion for public school facilities for the period FY2005 through FY2015. The Commission for Public School Academic Facilities and Transportation has approved a total of $1.141 billion in state financial participation through the end of FY2016 for facility programs. The Division of Public School Academic Facilities and Transportation expended $873.3 million as of June 30, 2015, leaving a FY2015 year-end fund balance of $175 million.

54 Higher Education Institutions Funding 2015 Federal $29.2 Million State Funds $839.3 Million Grants, Contracts, Gifts, Local $889.8 Million Sales and Services $388.1 Million Hospitals & Clinics $1,025 Million Tuition & Fees $900.2 Million 21.7% Misc. Funds $77.9 Million $4.15 Billion 54

55 Higher Education Institutions Operating Funds from State Sources Fiscal Year 2015 Work Force Education 3% Educational Excellence 8% General Revenue 89% $825.4 Million Total 55

56 State Funding 4 Year Institutions ARKANSAS INSTITUTIONS OF HIGHER EDUCATION - DISTRIBUTION OF MAJOR STATE FUNDS - FISCAL YEARS ENDING 2015 & 2016 Based on AASIS reports and the Feb. 1, 2016, Official Forecast. REV STAB LAW (A+B)** FISCAL YEAR Actual EDUC EXC TRUST FUND WORK FORCE 2000 FUND* TOTAL FISCAL YEAR Estimated REV STAB LAW (A+B1) EDUC EXC TRUST FUND WORK FORCE 2000 FUND* ARKANSAS STATE UNIV.(& System) $59,090,991 $6,154,737 $65,245,728 $59,090,991 $6,224,060 $65,315,051 TOTAL ARKANSAS TECH UNIV.(& Ark. Valley TI) 32,216,531 2,063,109 $786,662 35,066,302 32,216,531 2,086,347 $794,488 35,097,366 HENDERSON STATE UNIVERSITY 18,876,011 2,134,189 21,010,200 18,876,011 2,158,228 21,034,239 SOUTHERN ARK. UNIVERSITY 15,584,976 1,261,779 16,846,755 15,584,976 1,275,991 16,860,967 UA-FAYETTEVILLE (& System) 120,954,440 15,272, ,227, ,954,440 15,444, ,399,154 FOUR YEAR INSTITUTIONS UA-Archeological Survey 2,327,380 2,327,380 2,327,380 2,327,380 UA-Agriculture 62,800,138 62,800,138 62,800,138 62,800,138 UA-Clinton School 2,295,575 2,295,575 2,295,575 2,295,575 UA-Criminal Justice Institute 1,825,769 1,825,769 1,825,769 1,825,769 U OF A - FORT SMITH 20,594,615 3,127,187 23,721,802 20,594,615 3,162,410 23,757,025 UA-LITTLE ROCK 60,755,097 5,419,788 66,174,885 60,755,097 5,480,833 66,235,930 UA-MEDICAL SCIENCES 86,456,661 9,331,812 95,788,473 86,456,661 9,436,921 95,893,582 UAMS-Child Safety Center 720, , , ,588 UAMS-Indigent Care 5,342, ,212 5,574,393 5,342, ,827 5,577,008 UAMS-Child Abuse/Rape/Domestic Violence 735, , , ,000 UAMS-Pediatrics/Psychiatric Research 1,950,000 1,950,000 1,950,000 1,950,000 UA-MONTICELLO (& Crossett & McGehee) 15,946,042 1,088,956 1,349,691 18,384,689 15,946,042 1,101,221 1,363,120 18,410,383 UA-PINE BLUFF 25,418,885 1,890,404 27,309,289 25,418,885 1,911,696 27,330,581 UNIVERSITY OF CENTRAL ARKANSAS 53,114,705 4,696,967 57,811,672 53,114,705 4,749,871 57,864,576 TOTAL-FOUR YEAR INSTITUTIONS $587,005,585 $52,673,832 $2,136,353 $641,815,770 $587,005,585 $53,267,119 $2,157,608 $642,430,312 56

57 State Funding 2 Year Institutions Feb. 10, Based on AASIS reports and the Feb. 1, 2016, Official Forecast. REV STAB LAW (A+B)** FISCAL YEAR Actual EDUC EXC TRUST FUND WORK FORCE 2000 FUND* TOTAL FISCAL YEAR Estimated REV STAB LAW (A+B1) EDUC EXC TRUST FUND WORK FORCE 2000 FUND* ARKANSAS NORTHEASTERN COLLEGE $8,577,052 $736,111 $723,753 $10,036,916 $8,577,052 $744,402 $730,956 $10,052,410 ARK. ST. UNIV.-BEEBE (& Searcy & Heber Spgs.) 11,835,727 1,468, ,044 14,098,177 11,835,727 1,484, ,942 14,122,614 ARK. STATE UNIV.-MOUNTAIN HOME 3,648, ,811 4,463,921 3,648, ,928 4,472,038 ARK. STATE UNIV.-NEWPORT(& Marked Tree) 5,992,293 1,403,661 7,395,954 5,992,293 1,417,629 7,409,922 COSSATOT COMM. COLL. OF U OF A 3,395,802 1,337,033 4,732,835 3,395,802 1,350,343 4,746,145 EAST ARKANSAS COMMUNITY COLLEGE 5,788, ,453 6,556,511 5,788, ,109 6,565,167 MID-SOUTH COMMUNITY COLLEGE 3,858,007 2,169,328 6,027,335 3,858,007 2,190,916 6,048,923 MSCC-Ark. Delta Training & Ed. Consortium 1,500,000 1,500,000 1,500,000 1,500,000 NATIONAL PARK COMMUNITY COLL. 9,046,489 1,149, ,439 10,857,258 9,046,489 1,162, ,025 10,876,790 NORTH ARKANSAS COLLEGE 7,966, , ,510 8,990,314 7,966, , ,184 9,001,099 NORTHWEST ARK. COMMUNITY COLL. 10,619,202 1,015,712 11,634,914 10,619,202 1,027,152 11,646,354 PHILLIPS COMM. COLL./UofA (&DeWitt & Stuttgart) 9,063, , ,636 10,336,094 9,063, , ,856 10,349,743 RICH MOUNTAIN COMMUNITY COLLEGE TOTAL 3,206, ,844 3,409,713 3,206, ,129 3,411,998 SOUTHERN ARK. UNIV. -TECH 5,705, ,438 6,034,949 5,705, ,148 6,038,659 SAU-Tech.-Environ. Training Acad. 368, , , ,404 SAU-Tech.-Fire Training Acad. 1,651,221 1,651,221 1,651,221 1,651,221 SOUTH ARK. COMMUNITY COLLEGE 6,034, , ,843 7,016,717 6,034, , ,391 7,027,185 U OF A COMM. COLL. AT BATESVILLE 4,131, ,220 4,989,281 4,131, ,758 4,997,819 U OF A COMM. COLL. AT HOPE 4,491,997 1,939,647 6,431,644 4,491,997 1,958,952 6,450,949 U OF A COMM. COLL. AT MORRILTON 5,022,155 1,278,465 6,300,620 5,022,155 1,291,191 6,313,346 BLACK RIVER TECHNICAL COLLEGE 6,113,516 2,223,088 8,336,604 6,113,516 2,245,203 8,358,719 COLLEGE OF THE OUACHITAS 3,527,261 1,144,993 4,672,254 3,527,261 1,156,382 4,683,643 OZARKA COLLEGE 3,126,475 1,259,310 4,385,785 3,126,475 1,271,835 4,398,310 PULASKI TECHNICAL COLLEGE 15,137,437 2,251,370 17,388,807 15,137,437 2,273,766 17,411,203 SOUTHEAST ARK. COLLEGE 5,636,798 1,955,738 7,592,536 5,636,798 1,975,195 7,611,993 TOTAL-TWO YEAR INSTITUTIONS $145,443,804 $7,398,071 $22,366,889 $175,208,764 $145,443,804 $7,481,398 $22,589,452 $175,514,654 OTHER:UA-Math,Sci.& Art School $1,113,015 $7,288,327 $8,401,342 $1,113,015 $7,370,414 $8,483,434 57

58 Total State Funding 4 and 2 Year Institutions Based on AASIS reports and the Feb. 1, 2016, Official Forecast. FISCAL YEAR Actual FISCAL YEAR Estimated REV STAB LAW (A+B)** EDUC EXC TRUST FUND WORK FORCE 2000 FUND* TOTAL REV STAB LAW (A+B1) EDUC EXC TRUST FUND WORK FORCE 2000 FUND* TOTAL TOTAL $733,562,404 $67,360,230 $24,503,242 $825,425,876 $733,562,404 $68,118,936 $24,747,060 $826,428,400 * Special language in Act 978 of 2015, Dept. of Higher Ed. Sec. 22, & Act 1070, DFA Disbursing Sec. 77, requires distribution of WF2000 funds over FY amount ($26,413,487 including Tech. Insts.) to go to Skills Development Fund for workforce development programs of the Dept. of Career Education ($4. Million estimated for distribution for FY ). ** Legislative Council approved Governor's request to add $7 million FY14-15 "A" category funding to UAMS, to be included in '15-'17 biennium base, authorized by Act 299 of '14, Sec. 10(a)(ii). 58

59 Institutions of Higher Education 4 Year Institutions 2 Year Institutions NWACC UAF NACC ASU-MH OZTC BRTC UACCB ASUN ASUJ ANC RMCC CCCUA UAFS UACCM ATU ASU-B EACC UCA X PTC NPCC UALR & UAMS PCC-UA COTO SEAC UAPB HSU M-SCC UACC- HOPE SAU-TECH SAUM SACC UAM 59

60 Department of Human Services (DHS) 1. DHS-DIVISION OF ADMINISTRATIVE SERVICES 2. DHS-DIRECTOR S OFFICE 3. DHS- OFFICE OF CHIEF COUNSEL 4. DHS-DIVISION OF COUNTY OPERATIONS 5. DHS-DIVISION OF COMMUNITY SERVICE AND NONPROFIT SUPPORT 6. DHS-DIVISION OF AGING & ADULT SERVICES 7. DHS - DIVISION OF BEHAVIORAL HEALTH SERVICES 8. DHS-DEVELOPMENTAL DISABILITIES SERVICES 9. DHS-DIVISION OF MEDICAL SERVICES 10. DHS - DIVISION OF SERVICES FOR THE BLIND 11. DHS-DIVISION OF CHILDREN AND FAMILY 12. DHS DIVISION OF CHILD CARE AND EARLY CHILDHOOD EDUCATION 13. DHS - DIVISION OF YOUTH SERVICES 60

61 Department of Human Services (DHS) Department Funding by Source FY2015 Total Expenditures - $7.1 Billion Special Revenue, $3,653,438 Cash and Other, $719,418,638 General Revenue, $1,235,098,707 Federal Revenue, $5,171,592,173 General Revenue Federal Revenue Special Revenue Cash and Other 61

62 DEPARTMENT OF HUMAN SERVICES GENERAL REVENUE FUNDING BY DIVISION FISCAL YEAR Aging & Adult Services Youth Services 1% 3.6% Services for the Blind 0.1% Behavioral Health 6% Child Care/Early Childhood Ed 0.1% Children/Family Services 5.3% Total General Revenue Funding $1,333,248,875 Medical Services (includes Medicaid) $985,392,984 Behavioral Health $78,870,394 Children/Family Services $71,092,783 Developmental Disabilities Services $65,870,969 County Operations $48,481,487 Youth Services $47,808,456 Aging & Adult Services $16,547,666 DHS - Administration $16,136,255 Services for the Blind $1,883,424 Child Care/Early Childhood Ed $1,164,457 Medical Services (includes Medicaid) 73.9% County Operations 3.6% Developmental Disabilities Services 4.9% DHS - Administration 1.2% 62

63 Total Medicaid Expenditures - Final State Fiscal Year 2013 Pre-Private Option Total $4,683,716,870 $803,401,190 $603,461,146 $3,276,854,534 State General Revenue Other State Funding* Federal Revenue * Other State Revenue is comprised of Quality Assurance Fees, Medicaid Trust Fund (including fees assessed on particular provider types and penalties), Soft Drink Tax, Tobacco Settlement funds, General Improvement funds and drug rebates. 63

64 Total Medicaid Expenditures - Final State Fiscal Year 2014 Private Option - Partial Year (Six Months) Total Expenditures - $ 5,192,295,921 $575,519,306 $3,372,482,040 $882,046,884 $3,734,729,731 $362,247,691 State General Revenue Other State Funding* Federal Revenue * Other State Revenue is comprised of Quality Assurance Fees, Medicaid Trust Fund (including fees assessed on particular provider types and penalties), Soft Drink Tax, Tobacco Settlement funds, General Improvement funds and drug rebates. Private Option (100% Federal) 64

65 Total Medicaid Expenditures State Fiscal Year 2015 (Private Option Full Year) Total Expenditures - $6,200,021,661 $529,706,945 $3,448,084,635 General Revenue Other State Funding* Federal Revenue Private Option 100% Federal $4,771,225,229 $899,089,488 $1,323,140,594 * Other State Funding is comprised of Quality Assurance Fees, Medicaid Trust Fund (including funds assessed on particular provider types, penalties and the Soft Drink Tax), Tobacco Settlement funds, General Improvement Funds and drug rebates.

66 Total Medicaid Expenditures Estimated State Fiscal Year 2016 Total Expenditures - $7,297,328,005 $491,267,329 General Revenue $4,353,497,658 Other State Funding* Federal Revenue $5,834,184,210 Private Option (100% Federal) $971,876,466 $1,480,686,552 ^SFY2016 budgeted expenditures are projected based on actual expenditures as of February 18, * Other State Funding is comprised of Quality Assurance Fees, Medicaid Trust Fund (including funds assessed on particular provider types, penalties and the Soft Drink Tax), Tobacco Settlement funds, General Improvement Funds and drug rebates.

67 Total Medicaid Expenditures FY2014~ FY2015 FY2016^ State Funds General Revenue $ 882,046,884 $ 899,089,488 $ 971,876,466 Other 575,519, ,706, ,267,329 Total State 1,457,566,190 1,428,796,433 1,463,143,795 Federal Funds Traditional Medicaid 3,372,482,040 3,448,084,635 4,353,497,658 Private Option* 362,247,691 1,323,140,594 1,480,686,552 Total Federal 3,734,729,731 4,771,225,229 5,834,184,210 Total All Sources (With Private Option) 5,192,295,921 6,200,021,661 7,297,328,005 Percentage State Half Year Private Option 28.07% 23.21% Total All Sources Without Private Option Federal Half Year Private Option 71.93% 76.79% $ 4,830,048,230 $ 4,876,881,068 $ 5,816,641,453 Percentage State 30.18% 30.18% 30.33% Federal 69.82% 69.82% 69.67% ~FY2014 is for a partial year (six months) of Private Option. ^FY 2016 is projected budgeted expenditures for Traditional Medicaid and Private Option. *Private Option includes the Medically frail population that is eligible for 100% federal reimbursement.

68 $ in Millions $5,000 MEDICAID EXPENDITURES FISCAL YEARS $4,000 $3,000 $2,000 $1,000 Hospital/Medical Prescription Drugs Nursing Homes $ Funding is made up of State, Federal and Tobacco Settlement Money

69 Medicaid Recipients & Expenditures For Selected Services Fiscal Year 2014 Total Recipients 902,378 (Unduplicated) *Includes Private Option - 196,186 Bar Graph shows total services received by category or Duplicated Services. Total Expenditures $5.1 Billion (Includes Private Option - $362 Million) 900, , , , ,000 Hospital 698,874 Medical 753,638 Drugs 464,661 Other 842,705 Other (26.41%) $1,352 Hospital s (20.95%) $1, , , , ,000 0 Nursing Home 20,158 Home Health 6,182 Recipients may receive services in more than one category (i.e. One recipient may receives services in both Medical & Drugs). Total Duplicate Services for Recipients in Chart is 2.8 million. Drugs (7.27%) $372 Medical (28.53%) $1,461 Nursing Homes (16.35%) $837 Home Health (0.50%) $25 69

70 FEDERAL MEDICAID MATCH RATES (FMAP) % Federal Share Federal %

71 The Arkansas Department of Health provides core public health functions for the state: policy development, assessment and assurance. The Department delivers a broad range of public health preventive and regulatory services statewide. Approximately 3,000 public health workers across Arkansas are employed by the Department to provide these services. 71

72 Arkansas Department of Health Fiscal Year 2015 By Funding Type State Tax Dollars Trauma & Health Care Initiatives General Revenue Tobacco Settlement Funds Federally Funded Programs Includes WIC, Family Planning, AIDS/STD funding, Program Rebates, Preparedness Grants $157,012,805, 40% Fee/Reimbursables Includes Medicaid, Medicare, and Private Insurance Reimbursement, Licensing and Certification Fees, and other Special Revenues $131,775,737, 34% Trauma & Health Care Initiatives Includes all Tobacco Tax funded programs; Trauma System, Cancer task forces $30,596,000, 8% Total Fiscal Year ADH Funding $388,347,764 General Revenue Includes Salaries and Maintenance and Operations expenses for ADH $54,705,946, 14% Tobacco Settlement Funds Includes the operation of the Tobacco Prevention and Cessation Program and Minority initiative Grants $14,257,276, 4% 72

73 $95,000,000 $90,000,000 $85,000,000 $87,844,605 $92,326,264 $90,966,527 $90,838,467 $89,978,568 $85,301,946 $80,000,000 $78,896,794 $75,000,000 $70,000, FY2016 based on the February 1, 2016 Official Revenue Forecast 73

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77 Special Revenue 5% Cash Funds 5% State General Revenue 90% 77

78 Millions $350 $300 $250 $200 $150 $100 $50 $0 $201.8 DEPARTMENT OF CORRECTION STATE SUPPORT FY FY2016 General Revenue Rainy Day Set Aside $336.7 $13.6 $6.9 $5.9 $5.7 $2.7 $ Fiscal Years Fiscal Year 2016 based on February 1, 2016 Official Revenue Forecast. Rainy Day funding released for FY2016 as of February

79 STATE INMATE POPULATION FISCAL YEARS 2004 THROUGH ,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2, ,700 12,431 2,764 1,014 1, Prisons County Jail Backup Community Correction 79

80 POPULATION AND PRISON CAPACITY FISCAL YEARS 2004 THROUGH ,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Prison & Jail Backup Prison Capacity Does Not Include Department of Community Correction 80

81 INMATE COST PER DAY FY2015 ADC Inmate Care & Custody $63.50 DCC Residential Services $66.79 Drug Courts $12.61 Probation/Parole $ 2.24 County Jail Reimbursement $30.00 ADC Department of Correction DCC Department of Community Correction County Jail Reimbursement rate increased from $28 to $30 dollars a day effective July 1,

82 Millions $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 County Jail Reimbursement Fiscal Years (Millions) $9.50 $9.13 $9.45 $9.59 $9.45 $9.45 $7.2 $7.0 $2.9 $2.0 $4.2 $16.50 $7.1 $27.90 $ General Revenue Distributed through Revenue Stabilization Allocations Revenue Distributed through Supplement Acts (Surplus) 82 Note: FY2015 Supplemental includes $1.1 million distributed through the Rainy Day Fund

83 CRIMINAL JUSTICE REFORM ADDITIONAL GENERAL IMPROVEMENT FUNDING For the Biennium SHARED MANDATORY SET ASIDE GENERAL IMPROVEMENT PROJECTS Department of Correction - Leasing Additional Bed Space and Personal Services / Operating Expenses for Various Facilities. $12,218,010 Dept of Community Correction - Transitional Reentry Centers & Parole/Probation Officers. $13,000,000 Department of Community Correction - Court Accountability Grants. $2,800,000 County Jail Reimbursement - Regional County Detention Facilities. $4,380,000 GIF Set-Aside Projects $32,398,010 If it is determined that funding is not required at the full amount, then any portion of those funds may be transferred to the Rainy Day Set-Aside established in Act 1147 (a)(11) of 2015 by the Chief Fiscal Officer of the State. The Criminal Justice Reform Act (SB472 of 2015) was passed by the 90 th General Assembly for enhanced public safety and to help reduce the prison population. The allocations shown above provide for supplemental one time funding which is projected to be funded in excess of $32.3 million dollars. 83

84 Special 11.5% Cash 2.5% Federal 0.1% State General Revenue 86% 84

85 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $76,885,772 $76,934,087 $70,484,604 $69,975,623 $62,179,748 $66,411,671 $78,610,629 $0 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Does not include additional funding released from the Rainy Day Fund in FY2012 for $300,000 and $320,000 in FY

86 86

87 Area 01 Benton County West Rogers, AR Area 01 Fayetteville Area Office Fayetteville, AR Area 01 Rogers Office Rogers, AR Area 02 Berryville Office Berryville, AR Area 02 Harrison Office Harrison, AR Area 02 Mountain Home Office Mountain Home, AR Area 02 Mountain View Office Mountain View, AR Area 03 Batesville Office Batesville, AR Area 03 Hardy Office Hardy, AR Area 03 Heber Springs Office Heber Springs, AR Area 03 Newport Office Newport, AR Area 03 Pocahontas Office Pocahontas, AR Area 03 Searcy Area Office Searcy, AR Area 03 Walnut Ridge Office Walnut Ridge, AR Area 04 Jonesboro Area Office Jonesboro, AR Area 04 Jonesboro Drug Court Office Jonesboro, AR Area 04 Mississippi County Drug Court Osceola, AR Area 04 Paragould Drug Court Office Paragould, AR Area 05 Booneville Office Booneville, AR Area 05 Clarksville Office Clarksville, AR Area 05 Fort Smith Area Office Fort Smith, AR Area 05 Mena Office Mena, AR Area 06 Conway Area Office Conway, AR Area 06 Morrilton Office Morrilton, AR Area 06 Russellville Office Russellville, AR Area 07 6th Judicial District Drug Court North Little Rock, AR Area 07 Benton Office Benton, AR Area 07 Little Rock Area Office North Little Rock, AR Area 08 Lonoke Office Lonoke, AR Area 09 Forrest City Office Forrest City, AR Area 09 Helena Office Helena, AR Area 09 West Memphis Drug Court West Memphis, AR Area 10 Arkadelphia Office Arkadelphia, AR Area 10 Hot Springs Office Hot Springs, AR Area 11 Monticello Office Monticello, AR Area 11 Pine Bluff Area Office Pine Bluff, AR Area 11 Stuttgart Office Stuttgart, AR Area 12 Texarkana Area Office Texarkana, AR Area 13 Camden Office Camden, AR Area 13 El Dorado Area Office El Dorado, AR 87 Area 13 Magnolia Office Magnolia, AR

88 FY2015 General Revenue Expenditures for Other General Government and Local Aid $334 Million (Non Big Six State Agencies) Military Economic Department 3% Development 3% County Aid 5% DFA 3% Crime Laboratory 2% Heritage Department 2% Agriculture Department 6% State Police 20% County Jail Reimbursement 7% Higher Education Dept & Grants 13% Parks & Tourism 8% Municipal Aid 9% Other State Agencies 19% 88

89 FY 2015 AUTHORIZED POSITIONS 76,787 TOTAL OTHER STATE AGENCIES 19,516 25% CORRECTIONS COMMUNITY 4,546 CORRECTIONS HEALTH 6% 1,450 DEPARTMENT 2% 3,162 4% DHS 8,371 11% EDUCATION 441 1% INSTITUTIONS OF HIGHER EDUCATION 39,301 51% 89

90 FY 2016 AUTHORIZED POSITIONS 77,586 TOTAL OTHER STATE AGENCIES 19,513 25% CORRECTION DEPARTMENT 4,794 6% COMMUNITY CORRECTIONS 1,494 2% HEALTH DEPT 3,162 4% DHS 8,375 11% EDUCATION 449 1% INSTITUTIONS OF HIGHER EDUCATION 39,799 51% Fiscal Year 2015 Total Authorized Positions is 76,724. Institutions of Higher Education authorized positions made up 51% or 39,142 of the total. Fiscal Year 2016 Total Authorized Positions is 77,586. Institutions of Higher Education authorized positions made up 51% or 39,

91 Authorized Position - State Agencies (Page 1 of 4) 91

92 Authorized Position State Agencies (Page 2 of 4) 92

93 Authorized Position State Agencies (Page 3 of 4) 93

94 Authorized Positions Institutions Grand Total 94

95 Elected Constitutional Officers Article 6 of the Arkansas Constitution established the 7 Constitutional Officers: Governor Secretary of State Lieutenant Governor State Treasurer Attorney General Auditor of State Land Commissioner Constitutional Agencies Arkansas Highway and Transportation Department The Game and Fish Commission 95

96 The End If we can be of any assistance to you please contact the Fiscal Services Division 1 Capitol Mall, 5 th Floor 96