Forestry budget’s increases OK’d

Legislators give initial approval to restoring 20 jobs, other items

Friday, November 9, 2012

— Legislators gave initial approval Thursday to an Arkansas Forestry Commission budget increase for fiscal 2014 that would restore 20 positions to the beleaguered agency.

In November 2011, the commission announced it would have to lay off 45 employees, many of them firefighters, because of a drop in special revenue from timber sales. Further investigation of the commission found that it had been using federal funds to prop up the commission budget and pay salaries for months. State Forester John Shannon resigned as a result.

Some of those employees were rehired after the state Department of Agriculture shifted $550,000 within its budget from excess funds that the department usually returns to the state at the end of each fiscal year. That allowed the commission, which is part of the Agriculture Department, to rehire firefighters whose positions had been eliminated.

The budgeting process recently began and will last until the final days of the 2013 legislative session. Gov. Mike Beebe is expected to release his full budget proposal Nov. 15. The budget is for fiscal 2014, which starts July 1, 2013, and for fiscal 2015, which starts July 1, 2014.

Legislators and the governor are expected to spend the 2013 legislative session focusing on how to fill an anticipated $350 million shortfall in the state Medicaid trust fund while increasing funding for K-12 education by as much as $78.4 million.

The Arkansas Legislative Council and the Joint Budget Committee heard budget requests at the state Capitol Thursday.

The Forestry Commission receives $8.78 million for its general revenue budget.

It requested a $1.93 million general revenue increase for both fiscal 2014 and fiscal 2015, resulting in $10.71 million in general revenue in both fiscal 2014 and fiscal 2015.

The increase includes $803,937 to restore 20 positions, $21,009 for overtime, $428,922 for equipment maintenance and $650,000 for single-engine air tankers that dump water on fires.

State Forester Joe Fox told the committee that while the state “made it through OK” during a fire season that destroyed 21,000 acres in 1,177 fires, firefighters were working overtime.

“We had folks that worked 28 hours straight through and, in many cases, 30 days without a day off,” Fox said. “This budget gives us let-out people — that is people that lets people off the line — and give our folks a break.”

The commission also requested a $1.73 million increase to its $8.4 million special revenue appropriation for fiscal 2014, giving it a total of $10.13 million. It requested a $1.73 million increase for fiscal 2015, giving the commission a $10.14 million special revenue appropriation.

The committees accepted the general and special revenue recommendations of the executive branch, which also provides for the 20 positions, but would fund 11 of them through special revenue.

The executive recommendation includes an $880,952 increase in general revenue, which includes $341,491 for nine positions, $214,461 for maintenance and repairs and $325,000 for the tankers. That would give the commission a $9.66 million general revenue appropriation for fiscal 2014 and fiscal 2015.

The executive recommendation for special revenue is the commission’s $1.73 million request plus a $456,084 increase to pay for 11 additional salaries.

Special revenue for the Forestry Commission comes from the timber severance tax, the fire protection tax, seedling and timber sales, and federal grants.

The executive recommendation provides for a total of $11.13 million in special revenue in both fiscal 2014 and fiscal 2015.

Years of declining revenue from the timber severance tax weakened the commission’s finances. In November, it came to light that the commission had been inappropriately using federal grant money to pay payroll and operating expenses.

An investigation by the Legislative Audit Division revealed that the commission had dipped into federal grant money 59 times to transfer a total of $6.4 million into a state account used for payroll.

Legislative Auditor Doug Spencer told committee members the commission still owes the federal government $1.6 million.

The federal government hasn’t determined what it will do about the funds the commission has not repaid, Spencer said. He said no legal action has been taken as a result of the misused funds.

Spencer said the Division of Legislative Audit will review the commission again in the spring.

Arkansas, Pages 9 on 11/09/2012