An Arkansas state panel on Thursday endorsed the state Department of Commerce's request for $158 million more in federal American Rescue Plan funds for broadband projects and related costs.
Arkansas' American Rescue Plan steering committee also advanced several other requests totaling more than $100 million for federal American Rescue Plan funds to address a variety of state needs ranging from educating more nurses to improving substance abuse services to shoring up domestic violence prevention funding.
Republican Gov. Asa Hutchinson appointed the steering committee -- made up of nine Hutchinson administration officials and six state lawmakers -- in May 2021 to recommend the best uses of $1.57 billion in American Rescue Plan state fiscal recovery funds and $158 million in American Rescue Plan capital project funds.
In March 2021, President Joe Biden signed the $1.9 trillion American Rescue Plan Act that's designed to help the United States recover from the economic and health effects of the covid-19 pandemic.
State Department of Commerce Secretary Mike Preston said in a letter to steering committee Chairman Larry Walther that the U.S. Treasury's American Rescue Plan capital projects fund award to Arkansas specifies that it may only be used for broadband projects and related administrative expenses.
He said the U.S. Treasury has allocated to Arkansas about $150.2 million for broadband projects with the balance of $7.85 million to be used for broadband administrative expenses through 2026.
These capital projects-financed broadband projects will be subject to the terms of the Arkansas Rural Connect grant program, and the Arkansas Economic Development Commission has completed a rule promulgation that will govern all capital projects, Preston said.
"The broadband office is in the process of completing a competitive application process for broadband projects funded through CPF [the Capital Projects Fund]," he wrote in his letter dated Tuesday. "We expect to finalize the grant awards next week, so that we can obtain the necessary appropriation from [Arkansas Legislative Council] the following week. Our appropriation request to [Arkansas Legislative Council] will include a detailed list of all awardees, their project areas, and their award amounts."
So far, the Arkansas Rural Connect broadband grant program has handed out $396.5 million in grants to 163 projects across the state, said Chelsea O'Kelley, a spokeswoman for the Arkansas Economic Development Commission.
In other action, the steering committee endorsed several other requests for American Rescue Plan funds including:
• The state Department of Finance and Administration's request for $47.25 million as a short-term solution to address the state's nursing shortage.
If this proposal is approved by the Legislative Council and its Performance Evaluation and Expenditure Review Subcommittee, each college or university will need to reevaluate its needs and submit new applications for funding, according to the finance department. The new applications will be reviewed by the steering committee, and Legislative Council and the council's Performance Evaluation and Expenditure Review Subcommittee for funding.
The proposal includes $15 million to provide financial incentives to nursing faculty, $15 million for renovation and equipment needs for existing programs at educational facilities, $7.25 million for stipends to facilities that provide clinical training to nursing students, $7 million for renovations that would be used by new educational programs, and $3 million for $300 stipends for clothing and equipment for incoming students.
• The Department of Human Services' request for $30.15 million to improve substance abuse prevention services across eight regions in Arkansas.
The request includes $19.4 million from applications submitted to the department, and $4 million for Natural State Recovery Centers, $3.3 million for Harbor House, $2.5 million for River Valley Medical Wellness, and $708,7878 for ARVAC Inc.
• $20 million for the state Administrative Office of the Courts to help fund a new case management system.
The Administration of Justice Fund, administered by the finance department, collects fines and fees paid through the courts in Arkansas and disburses those funds monthly to various entities under state law as money is available, according to the finance department. The collections of these funds have steadily declined from $38.3 million in fiscal 2009 to $22.9 million in fiscal 2021.
The finance department said an agreement has been reached with the Administrative Office of the Courts to partially fund the development of a new case management system and provide a path forward for the office to manage the courts and increase collections back to previous annual levels. Under this proposal, the Administrative Office of Justice Fund law would be amended by the Legislature to maintain the current level of collections remaining in the fund at $23 million a year, and the next $17 million of collections would be deposited as $8.5 million for distribution from the fund to the entities specified under state law.
• The finance department's $8.4 million request over two years to shore up domestic violence prevention funding.
The finance department proposes using American Rescue Plan funds to restore Victims of Crime Act (VOCA) grant recipients to the level of disbursements that were made in 2019 and 2020, after a decline in funding between 2020 and 2021 of $4.2 million. With the passage of the federal VOCA Fix to Sustain the Crime Victims Fund Act of 2021, more time will be needed to determine the full extent to which VOCA funding will be restored, according to the department.
• The finance department's request for $5.7 million to help construct a new Women & Children First emergency shelter in Little Rock.
Three months ago, the steering committee endorsed a $9.5 million request from Women & Children First, a nonprofit that serves victims of domestic violence, dating violence, sexual assault, stalking and human trafficking before that request stalled amid questions from state lawmakers about the group's financial needs for the new shelter.
The current estimated cost of the emergency shelter is $11.2 million and other available funding is $5.5 million, including $4 million from a Windgate Foundation matching grant, $1 million from Women & Children First Board capital campaign fund contributions and $500,000 from Attorney General Leslie Rutledge's office, according to the finance department.
• The finance department's $6.25 million request to help open the Sevier County Medical Center. Since 2018, Sevier County has been without an acute case hospital after the former hospital closed amid financial struggles.
The county's residents approved a 1% sales tax to support construction and operation of a new hospital, and the new hospital needs additional financial help as it gets closer to opening due to rising costs as a result of the pandemic, according to the finance department. The hospital will serve Sevier County and parts of Little River, Polk and Howard counties.
Arkansas has about $292 million in unallocated federal American Rescue Plan funds, according to a finance department report.