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ArkansasHB11052025 Regular SessionHouse

AN ACT FOR THE DEPARTMENT OF HUMAN SERVICES - SECRETARY'S OFFICE APPROPRIATION FOR THE 2025-2026 FISCAL YEAR.

Sponsored By: Joint Budget Committee

Enacted

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 4 benefits, 0 costs, 1 mixed.

Lawmakers review Arkansas human services operations

For July 1, 2025–June 30, 2026, the law directs a comprehensive legislative review of DHS. The Legislative Council's Hospital and Medicaid Study Subcommittee leads it when Council co-chairs direct, after consulting subcommittee co-chairs. The review covers policies, staffing, revenues, and spending across DHS, its divisions, and providers. Priorities are Shared Services, Children and Family Services, and County Operations. The Attorney General's Medicaid Fraud Unit and Department of Inspector General must provide input. A preliminary report and recommendations are due within six months of the subcommittee's first meeting. The final report and recommended legislation are due at the last Legislative Council meeting of the 95th General Assembly. DHS must report monthly on implementation, and the subcommittee must review and approve the steps taken.

Arkansas funds human services building repairs

For July 1, 2025–June 30, 2026, the law creates a temporary DHS Renovation Fund. It provides about $15.91 million for constructing, buying, renovating, maintaining, repairing, and equipping Secretary's Office buildings. The fund can also cover federal disallowances—amounts the federal government refuses to reimburse. It can receive federal reimbursements, other DHS non-general revenues, and up to $5 million annually in general-revenue transfers. Those transfers can come from Youth Services; Aging, Adult, and Behavioral Health Services; and Developmental Disabilities Services. General-revenue transfers must fund projects not anticipated during the prior regular legislative session, where waiting until the next session causes greater harm. The DHS Secretary must request transfers, and the chief fiscal officer must certify that money is available. The chief fiscal officer, Governor, and Legislative Council or Joint Budget Committee must approve transfers before they take effect. Unspent non-general revenues and committed general revenues carry forward as specified.

Arkansas funds human services staff and operations

For July 1, 2025–June 30, 2026, the law funds Arkansas Department of Human Services (DHS) staff and operations. It authorizes one Secretary position, up to 650 regular operations employees, and up to 28 temporary workers. Secretary funding totals $355,720: $287,042 for salary and $68,678 for related personnel costs. Operations receive about $69.76 million, including about $38.44 million for salaries and $298,556 for temporary help. Other personnel funding includes about $14.10 million for related costs and $8,383 for overtime. Operating funds include about $5.57 million for upkeep, $8.86 million for professional services, and $2.02 million for data processing. Equipment and other capital purchases receive $400,000. The Consolidated Cost Revolving Fund provides $821,500: $800,000 for operations and $21,500 for capital purchases. Another $129,084 pays for purchased services. The state's chief fiscal officer selects paying accounts for Secretary staffing, operations, and service purchases; these are not direct household payments.

State hospital repair reimbursements return to reserves

Beginning July 1, 2024, DHS must return Arkansas State Hospital storm-repair insurance reimbursements and money left after repairs. Money goes to the Emergency Budget Directive or Contingency Set-Aside in the Restricted Reserve Fund when active with a positive balance. Otherwise, it goes to the General Revenue Allotment Reserve Fund. DHS must notify the chief fiscal officer and the PEER/Review Subcommittee when insurance reimbursements arrive. Quarterly reports must cover project status, timelines, reimbursements, and the remaining balance of the original $5 million transfer. The return requirement lasts until the final transfer, rather than ending June 30, 2026.

Arkansas allows transfers but protects Medicaid funding

From July 1, 2025–June 30, 2026, DHS can move funds between state agencies or DHS divisions for federal matching payments. These payments must cover services eligible for federal reimbursement under DHS programs. The chief fiscal officer must approve these transfers, and DHS must report them quarterly to the Legislative Council or Joint Budget Committee. DHS can also request shifts in positions, spending authority, and funds within or between its units for authorized purposes. DHS is limited to four reallocation requests yearly, with each division limited to one purpose per departmental request. Shifts for unforeseen purposes cannot exceed 5% of DHS's total authorized appropriations, funding, and positions. Reallocations require advance approval from the chief fiscal officer, Governor, and Legislative Council or Joint Budget Committee. Emergency approval can come from the chief fiscal officer and legislative co-chairs, followed by reporting. Medicaid-supporting money cannot move to accounts that do not directly support Medicaid. Children and Family Services resources for the Angela R. consent decree cannot move to other divisions. Developmental Disabilities' Grants to Community Providers funding cannot decrease, and five Human Development Centers must retain enough resources for quality care. These financing rules do not change Medicaid eligibility or individual benefit amounts.

Sponsors & Cosponsors

Sponsor

  • Joint Budget Committee

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 130 • No: 0

Senate vote • 4/15/2025

Senate Vote - Tuesday, April 15, 2025 2:27:51 PM

Yes: 34 • No: 0

House vote • 4/14/2025

House Vote - Monday, April 14, 2025 2:23:36 PM

Yes: 96 • No: 0 • Other: 2

Actions Timeline

  1. Notification that HB1105 is now Act 1004

    4/22/2025House

  2. Correctly enrolled and ordered transmitted to the Governor's Office.

    4/16/2025House

  3. TO BE ENROLLED

    4/15/2025House

  4. Returned from the Senate as passed.

    4/15/2025House

  5. Returned to the House as passed.

    4/15/2025Senate

  6. EMERGENCY CLAUSE ADOPTED

    4/15/2025Senate

  7. Read the third time and passed.

    4/15/2025Senate

  8. Read the first time, rules suspended, read the second time and placed on the calendar.

    4/14/2025Senate

  9. Received from the House.

    4/14/2025Senate

  10. EMERGENCY CLAUSE ADOPTED

    4/14/2025House

  11. Read the third time and passed and ordered transmitted to the Senate.

    4/14/2025House

  12. Considered in the Committee of the Whole, and recommended do pass.

    4/14/2025House

  13. RULES SUSPENDED

    4/14/2025House

  14. REPORTED CORRECTLY ENGROSSED

    4/10/2025House

  15. Amendment No. 2 read and adopted and the bill ordered engrossed.

    4/10/2025House

  16. Placed on second reading for the purpose of amendment.

    4/10/2025House

  17. Returned by the Committee with the recommendation that it do pass as amended 2

    4/9/2025House

  18. REPORTED CORRECTLY ENGROSSED

    3/12/2025House

  19. Amendment No. 1 read and adopted and the bill ordered engrossed.

    3/12/2025House

  20. Placed on second reading for the purpose of amendment.

    3/12/2025House

  21. Read the first time, rules suspended, read the second time and referred to the Committee on JOINT BUDGET COMMITTEE

    1/13/2025House

  22. Filed

    1/13/2025House

Bill Text

  • HB1105 - Introduced

    1/13/2025

    PDF

  • Act Version

    PDF

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