Sen. Jimmy Hickey, R-Texarkana, said Tuesday that he's a tad wary about authorizing what would be the most sweeping reorganization of state government in almost 50 years.
But Gov. Asa Hutchinson assured a Senate committee that he's prepared to implement his plan to reduce the number of state agencies reporting to the governor from 42 to 15. The plan would take effect July 1.
The exchange came during the Republican governor's 25-minute appearance before the Senate State Agencies and Governmental Affairs Committee to pitch his proposed reorganization.
At one point, Hickey said, "For the most part, I agree with what's in the bill.
"I am more than willing to give this to you, but I will have to tell you that I am a little bit nervous if we are going to do all of this at one time because what I do see is that wherever we do every one of these on June 30, July 1, that that is a massive undertaking," he said.
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Hickey said he wishes "that somehow that we would [have] figured out a schedule ... [under which] in 120 days ... maybe doing three or four or five of them and then the others."
"Again, that is your job," he said to the governor. "I do hope you thought about that."
Hutchinson, who has been governor since 2015, replied that he understands that challenge.
He recalled that Congress passed legislation to create the federal Department of Homeland Security in 2002 and that "we had about 90 days for the transition."
"And then we had the agencies come on board, which was 22 agencies and 180,000 employees, and they were far-flung across government and I was there at the time, so I know the challenge," said Hutchinson, who served as an undersecretary for transportation and border security in the department.
"Because I know the challenge, we have been working on transformation for really over a year and half with the transformation advisory board, thinking this through over a long period of time," he said.
As soon as this legislation passes, "we'll have a similar transition time thinking through before the actual law goes into effect," he said.
Sen. Bill Sample, R-Hot Springs, said the Legislature's tax overhaul task force spent last year studying the tax code, and the Legislature's health care task force studied the state's Medicaid program a few years ago.
He said he wished state lawmakers had more time to study the proposed reorganization.
"I think everyone wants this to work," Sample said.
Hutchinson said he set up a transformation advisory board in February 2017 that included Reps. Andy Davis, R-Little Rock, and Matthew Shepherd, R-El Dorado; Sen. Jim Hendren, R-Sulphur Springs; and former Sen. Eddie Joe Williams, R-Cabot.
Then, he said, his administration hired the international consulting firm PricewaterhouseCoopers to make comprehensive recommendations on aligning state agencies and "then we evaluated that and came up with this plan.
"We don't take this lightly ... but now is time for transformation," Hutchinson said. In May 2018, the Legislative Council approved a $900,000 contract with the consulting firm.
Sample said he would have liked for PricewaterhouseCoopers' report to have been shared with the Senate committee.
Sen. Breanne Davis, R-Russellville, said she received numerous emails from Sen. Bart Hester, R-Cave Springs, and Amy Fecher, the governor's chief transformation officer, to provide input about transforming state government. She said she appreciated that opportunity.
"I believe that in terms of efficiency certainly this transformation effort is huge and will provide a great and valued benefit to citizens across the state," Davis said.
The governor said the three key objectives of the reorganization are increased efficiency, improved delivery of services for Arkansans and increased managerial oversight.
"I have the utmost confidence that there will be savings from our transformation efforts," Hutchinson said, noting his proposed general revenue budget for fiscal 2021 includes $15 million in savings. Fiscal 2021 starts July 1, 2020.
He said probably $7.5 million of the projected savings will be in state general revenue and some in federal funds.
"There will absolutely be savings that will increase over time even beyond what is budgeted in that second year of the biennium," based on his experience in the last four years with 1,400 fewer employees in state agencies that report to him, Hutchinson said.
The executive branch had 25,124 state employees, according to the most recent report, Hutchinson spokesman J.R. Davis said afterward.
With 31 co-sponsors in the House, Rep. Rick Beck, R-Center Ridge, on Tuesday filed House Bill 1505 that would require the secretary of each Cabinet-level department to present to the House and Senate State Agencies and Governmental Affairs Committees two weeks prior to the 2020 fiscal session a summary of the proposed reduction in total general revenue expenses by at least 1 percent.
If a Cabinet-level secretary doesn't comply with the requirement, the secretary would have his salary reduced by 10 percent under the bill.
Hutchinson's plan proposes the largest reorganization of state government since 1971 under Gov. Dale Bumpers.
A Section on 02/20/2019