Support for Arkansas Week provided by the Arkansas Democrat-Gazette, the Arkansas Times and KUAR FM 89.

Hello, everyone.

I'm Donna Terrell for Arkansas Week.

Arkansas school districts are having to alter their allocated spending plans due to federal funds being rescinded by a legislative council to recommend districts provide bonuses for their teachers and staff.

Joining me to talk about the challenges on redirecting these funds are Dr. Mike Hernandez, executive director of the Arkansas Association of Educational Administrators, and Dan Jordan, director of governmental relations for the Arkansas School Boards Association.

Thank you so much for joining me here in studio to talk about this.

Okay.

So we are talking about AARP Esser funds.

And I'm just going to explain that the American Rescue Plan's elementary and secondary school emergency relief funds.

There's a history behind these funds.

And I think to better help our viewers understand what we're talking about, let's talk about the history first.

Yes, ma'am.

So, you know, I think it's important to go back to, you know, a little bit back in history when when COVID first started in March of 2020, there was an initial pot of money called Esser one.

So about a $119 million pot was sent to Arkansas schools and said, okay, you can use this for various things related to respond to COVID.

Then following up in December of that same year, there was a second pot which we referred to as Esser two, where there was a larger amount, 502 million that was allocated to districts to be used to respond to COVID, you know, hire additional teachers, go to pivot to remote learning, all the different things that were going on.

And then the specific part that I think we're looking at this year or at this point is the air, peace or some people refer to it as Esser three But it's actually RFPs or is the formal name, and that's the $1.13 billion pot that has been allocated.

And so districts actually knew about these allocations in April of 2021 and then were authorized to start spending those and making their plans July 1st of 2021.

Okay.

So just to be clear, to make sure we all understand this this money, the legislature wants you to use this money now for teacher bonuses or but some of the money has already been earmarked for other things.

Is that what we're talking about here?

Okay.

So what does it mean now?

Well, the money is this just a recommendation?

And the legislature is saying this committee is saying that, okay, now we recommend you use these money for bonuses.

Explain to me why that would be a problem.

So, you know, during the 21 session as these ARP moneys were made available, the legislature passed a law part of an appropriation bill.

At 997 of 2021.

And so they asked for review authority with the Arkansas Legislative Council, which you here referred to as AOC, to look at every request for appropriation with how districts are spending this money.

Other agencies might be spending this money.

And so that process has been in place.

And so districts, you know, have made their plans starting back in July of 2021.

And the Department of Education has been going and asking for this money as expenditures have been going.

And so what's at issue here is that most districts have been following through with their plans.

And then here kind of in the you know, after plans have been made, this new request or recommendation by the AOC has been to give teacher bonuses out of money.

That's already been planned and and from a lot of in a lot of cases, some of it's been expended.

Okay.

So what does this mean to these schools now that, you know, they've already made plans for the money, they're being told to redirect it in another area for for for bonuses.

How does this affect these school districts?

Yes, I mean, well, the many of the superintendents that have visited with us have concerns because many of the funds are already encumbered.

There are districts that have had maybe small HVAC systems and so forth, already done and even paid for.

And obviously, this money, it goes to a reimbursement process as you spend it, you get reimbursed to the state.

But HVAC systems or they may have had the opportunity to affect learning loss by hiring additional staff or additional moving some of the teachers, their best ones into intervention situations and buying excuse me, hiring teachers to replace those.

And so those have already been going through the hiring process and contracted.

So those monies are committed.

There are districts that have talked to us that are concerned because they're in the middle of a project.

That's whether it's larger that would use like a large portion of their portion of the federal money.

And they're in the middle of that project.

They've already done the engineering and the architecture and all the all the pieces.

And they're in the middle of a project that may complete in two or three weeks to a month and a half, and they're obligated to those funds.

And if they don't have the federal money that they planned, what will they do to include the concern of how they would address the bonus that the AOC is recommending?

So is the AOC recommending this because teachers are number one, they want pay raises from the from the state surplus, which doesn't appear as though they're going to get.

And so is this a way that the legislature is trying to appease teachers by giving them bonuses from this money?

You know, kind of like switching gears in the middle of what was not necessarily earmarked for bonuses.

Does it have anything to do with that?

So I think there's a little bit to do, you know, with that.

You know, I think it's it's always important to go back to the process.

So, you know, for many years or actually since the early 2000s, you know, we have had a process in place where we've looked at teacher salaries and those types of things through the adequacy committee.

You know, I know Diane is actively engaged in that process and as well as our number of districts in, you know, reviewing expenditures and needs for districts.

And so, you know, this I think when the whole discussion about, you know, teacher raises and bonuses and all things that came out kind of I don't want to say out of turn that it's not warranted and needed.

I think it very much is, but I think that's got everybody kind of off their process of how we normally do business in terms of, you know, adjusting salaries and things like that.

Because I have a number of districts that, you know, they're they're very ready to do things that have that with raises and things like that, even looking at the special session.

But I also have a number of districts, especially the small nature, given the plan that was out there, that would struggle, you know, to maintain and sustain those things over time.

And so I think that's an important aspect, is not to lose sight that there is a process, but also understand that, you know, we are falling behind many other states and this has to be addressed as quickly as possible.

So what is it that you plan to do?

How do you address it?

So, you know, they take that you two are looking at each other.

You answer that question.

No, you answer.

I think he's going to kick that football to me.

With regard to what we're waiting to see, what the what the process is going to wind up being, we've had superintendents and board members call our office to say, well, okay, well, if we're in this situation and some of the ones I just described that they've already encumbered maybe that and and or had the plan, what would we do now and then what what what would the consequence be if we're not unable at that time, we don't have the money to do to that to the level that they had.

What were the consequences?

Well, we don't know those things, and we're very anxious to hear the information out of the department when they send out the plan to see.

So we'll have a we'll know how to react and help board boards do that very thing.

So we're right now, we're unsure.

What I would definitely want to say is we're very, very appreciative the last couple of sessions and the legislature has stepped up and they knew that teacher salaries were lower than they should be.

And they really stepped up even to this year to get it to the 36,000.

It is obviously the deposit and all of this is the legislature in general, I think thinks that it's a need that needs to be addressed.

So we think something will happen.

To what degree we'll be in as that unfolds over at the Capitol.

And I don't think it's going to happen in special session as we've spoken.

But the adequacy study, when it completes that will go into January with some recommendations.

We don't know what those are at this time.

So to specifically answer your question, I'm I'm not prepared to do that because we know you're asking the question.

I don't know the answer to at this point.

And I know you got to be careful with with what you say here, because you're right.

The legislature I mean, teachers did get raises.

I mean, they up the amount of base salary for teachers in the state.

It's still not where many people feel it should be.

I think we can agree on that.

But now when we look at these districts that, you know, use that that third, what did you refer to it?

The third tier of money on an h-back system.

And now, you know, they're having to switch gears potentially.

It sounds like what if that doesn't change and they just don't have the money to to give bonuses?

They've spent the money.

What happens to these districts?

So, you know, we've had lots of communications with districts and we've tried to, you know, ask them some fundamental questions.

You know, first off, you know, did they get meaningful feedback from their community, including teachers, when this money first was made available and develop that into their IRP plans?

And, you know, in all cases, that should be yes, they got meaningful feedback when this guidance changed.

That said, you know, allowed some bonuses and things like that.

The thing that, you know, I think a lot of folks have to remember is that the a lot of districts have done some type of recruitment in retention payments, additional work payments, and so there are millions of dollars.

I think the last thing that we heard was around $340 million have been spent out of this aggregate amount of Esser money towards those things.

So I think that's one thing that's important to note, that this money just didn't go to projects.

It didn't go to support teachers, people that had COVID leave.

All of those things were meant to, you know, support students and teachers in the district if they there is not obligations that are out there.

Like Dan mentioned, contracts for for building projects, HPC.

Then I think that IRP team needs to come back together and say, okay, with the money we have left, what can we do?

And to do with anything with bonuses, any more supplemental teacher pay and then all of that, my understanding will have to be taken back to the AOC to say, okay, you know, we hear your recommendation, we want to do our best to support it, but here are our set of circumstances of why we're not able to meet it or we are.

You know, there are some districts that are going well above and beyond what's recommended and why they're such differentiation is because the way this money was distributed was on a poverty index, and we call it Title one, Title one distribution formula.

And so you have some districts that have very low poverty that got very little per kid and then poor student, and then you have some that got tremendous amounts of money.

So there is going to be, by nature of looking at this process and this specific fund, you're going to have that variation where not every district and teacher will be treated equally, which is unfortunate.

But but when you want when you try to look at this specific program, that's just the nature of how that those funds were distributed.

Dan, your thoughts on that?

Well, I think I think Mike pretty well touched all the bases.

Yeah, we totally concur with everything he said.

And again, we're just waiting and to see what the next step will be to have plans to help districts, because we don't know what that's going to look like right now except with the things that Mike shared.

Okay.

Are the districts nervous?

I mean, you said you're getting phone calls from superintendent.

Board members are concerned because they're going to have to go back and revisit something that they did all the work with and involved stakeholders in their districts to come forth with that plan.

And now they're going to hold and get that plan back and to see how they can go back and address.

And if it was technology or things that haven't been procured, for lack of a better way to put it at this time, those are going to be funds that will be back.

Will they have enough left to do to the level of the recommendation, which was the 5000 to 2500 for classified, so to say?

Are there concerns I'm going to have to answer you that the phone calls we're getting through board members is that there's a lot of concern.

What are your hopes for the 2023 legislative session in terms of teacher, teacher, pay, teacher raises and so on?

You guys are good at passing the buck.

So, hey, I just want to make sure he has this opportunity to say something.

So because I didn't talk too much.

Well, Dan.

No, sir.

With you know, what Mike has to make is Mike knows all those things.

And I usually concur with him on everything.

I would just like I said earlier, I want to compliment the legislature for the last couple of sessions they have.

And there's no doubt or question we hear from the leadership in both chambers that there is concern and the fact that they're they think that the teacher raise issue is important.

And where we sit as a as a state with surrounding states that their needs that we need to consider increasing the teacher minimum.

And I think that we're going to see positive results of that.

To what degree?

I don't know.

Okay.

We have less than 30 seconds.

Yeah.

So, you know, I think there's going to be some important things that we need to look at with teacher salaries.

But I also believe that classified staff really has to have a good look in.

You know, I think with wages out there outside of education, I think those are equally going to be important as we try to run our schools.

Okay.

Dr. Hernandez, Dan Jordan, thank you so much for for being here to talk about this.

Very important.

Thank you.

Thank you.

All right.

And I want to thank you, but we'll be right back.

There are many cities across the state that are struggling to maintain their water and wastewater needs.

Here to talk about it are Secretary of Agriculture Wes Ward and Denis Sternberg, CEO of Arkansas Rural Water Association.

I want to thank both of you for being with us.

We have a picture of Secretary Ward.

He is at a convention at the Hot Springs Convention Center.

So he's actually talking to us today over the phone.

But he's he's with us live, even though we just have a picture of him.

So let's get started here.

I know the industry is looking for money from the American Rescue Plan funds.

There are quite a few projects around the state that need addressing.

What's the major problem that the industry is dealing with?

Well, I think what the industry is dealing with is aging infrastructure of the water and wastewater utilities across the state that we've put back in, put in service back in the 1900 1650s, all the way back, some systems older than that.

Fort Smith, one of the oldest systems in the state.

But every system has water and sewer.

The cities, there's 375 wastewater systems alone, public wastewater systems throughout the state.

But there's over 680 public water systems throughout the state.

And when you look at the needs, it just quantifies, multiplies the need for it.

And money is what it takes to to make the needed improvements in the can continually be able to provide that good, safe drinking water to the system.

Okay.

We'll get into specifics on that in just a second.

But I want to to talk with Secretary Ward about why have we reached a point now where there are so many projects, more than 1400 projects that need addressing?

Have we gotten behind on this?

And if so, why now?

I would actually I think you could explain the history there.

I think we are behind states on helping some of these project move forward and some of these in this area for areas.

That's where we hope that this rescue plan funding will be helpful.

Are the states getting $1.57 billion water and wastewater eligible, an eligible category for that funding?

And so we're very optimistic that a good portion of this funding will bid to help address some of that as a senator and yourself.

You know, there's there's just about a $5 billion worth of need across the state of Arkansas.

And we're hoping that this American rescue plan will help us start catching up with some of our aging infrastructure.

Okay.

We're talking about more than $5 billion needed.

That's not how much money you're going to get from the American Rescue Plan Fund.

By no means no.

Right.

Even if they gave all of it to us, it wouldn't cover the need.

Okay.

One of the things you and I were talking about is most people take their water for granted.

I know.

I do.

I expect to turn on the faucet and it should you know, water is going to come out.

I expect to flush the toilet and it works.

So what specifically how does this affect the average person out there that's watching this program?

And they're thinking, oh, my goodness, they're talking about water.

I'm not interested in that.

How does it affect them?

Well, it affects their everyday life.

I mean, and they don't realize it.

You hit the nail on the head.

We take it for granted and the water turns on in the morning.

You flush the stool, everything works.

But there's a lot behind the scenes happening that people need to realize.

And that's out of sight, out of mind.

But it's still a need and there's a cost to service.

All that and each customer has to pay a portion of that cost.

There's an operational costs or debt payments, all of this combined.

And then as you get the debt paid off, you come back to the fact that, hey, it's 40 years and we need to do replacement.

We need upgrades.

Technology has changed and regulations have changed and forced you to make different improvements.

So there's a lot going on.

And I think people need to also realize that, you know, in in some of the urban areas, most of the urban areas, you have more rate payers.

Exactly.

So so you have more money that's that's coming into the system.

But when you look at the rural areas, I mean, you've got a lot of ground to cover and you have fewer rate payers.

So part of that is coming into play.

There's less money to fix and repair.

Different issues.

Oh, you're exactly right.

And that's where the the grant money through the American Rescue Plan Act would help.

It wouldn't cure all.

It's not going to cure all, as we mentioned.

But you can partner that with loan money.

Arkansas Natural Resources Department Bank has a loan program that they can help with systems large and small throughout the state.

So there's also USDA rule development has loan and grant moneys.

So all these programs working together will help assist the systems, make the needed improvements.

And Arkansas Natural Resources and USDA both have done an excellent job.

Secretary Ward, I know the Arkansas Department of Agriculture, I believe, is involved with a steering committee that is supposed to get these funds coming in the request.

And correct me if I'm wrong, the request was made back in March of last year.

And you're still waiting.

You haven't heard if you're going to get these funds, you believe you're going to get them.

But what's the holdup?

Why is it taking so long?

Yes, ma'am.

Well, that's a that's a great question.

And so that $1.57 billion that the state is receiving payment through separate payments kind of split in half.

The first half came last year.

Broadband was was a big piece of what that first half was spent on.

And during that time, the governor created a working group to help identify needs and what could be spent.

And that's where we came up with that $5 billion and that needed survey.

But right after we did that was when the coronavirus really spiked again.

And so there were, you know, different medical needs, hospital space needs to help address the coronavirus.

That's the last year.

And so just now, just recently, within the last two months, month and a half, the state received that second half of the money.

So I think we're getting very close.

So there's we know there's about about $800 million or so left with American rescue plan funding.

And we're hoping we'll have a steering committee meeting soon and get that process moving forward in the near future.

Okay.

$800 million remaining.

How much of that would be coming to, I want to say, Arkansas Water?

But when I say that, I mean that broadly.

I mean for this specific issue, how much of that money would be earmarked for water?

Right.

That's that's a great question.

And what still has to be decided, you know, when we put together our report last year, when we were looking at 1.5, $7 billion, we asked for about 800 million.

We know that there's half of that left now.

And so we know that what our original, original request will not be what we had.

We won't get that full amount.

And as Dennis mentioned, as you mentioned, you know, there's no way to meet our need, but we're hoping we'll get a significant portion of the remaining funding.

But that still has to go through the steering committee into the Arkansas legislature for final approval, but hopefully very near future.

We'll have some some good decisions.

Okay.

Even when you get this, Dennis, it's not going to be enough money.

Exactly.

So what does that mean?

What does that mean for people who are expecting?

Like I said, we take our water for granted.

What does that mean for them?

Well, what it's going to mean is each system is going to have to start prioritizing their needs and coming back in each year, applying and prioritizing what they need to fix first to keep the water flowing, to keep the wastewater services in place and operational and in compliance, because you want to provide good, safe drinking water to everybody.

Yeah, that's a good point.

Are we right now supplying good, clean drinking water to everyone in Arkansas, to everyone in this state?

Well, I'd like to say yes, but I mean, honestly, I think we have a couple of systems struggling.

We've had some emergencies in the last month or two with systems that's been on continuous more kind of emergencies.

Well, so your door.

I had a water plant issues or they'd been doing some improvements and went starch plant back up and the filters wouldn't work.

Right.

So we came in and they asked us to look at it and we contacted the when we went down and looked at it, we contacted Supply House to see if they can come and look at it because it was specialized pneumatic valves and stuff.

But those types of things are in process.

They've ordered those equipment, they didn't have the money.

But the Secretary of Agriculture's Division, Arkansas Natural Resources, has stepped up and provided moneys, emergency moneys, to help them until we can get this fix.

The drought and the economy not helping the drought in economy is really putting a burden on it because the drought is taxing all the water systems capacity right now.

The rain we received last night a little bit here in Fulton County has been a dream come true.

Hopefully the next several days will see a bigger dream come true to where we can get some relief from the heat.

And then the water systems can start lowering their capacity because the systems customers won't be needing as much.

But but the problem is still there.

They're maxing out.

So we got to get things like that fixed.

You know, we talk about broadband and culvert, very important issues, but water is paramount.

Paramount?

Yes.

So we need the money.

All right.

I wish we had more time to to talk about this, but I do want to thank Secretary Ward for for joining us.

We were able to hear you.

So so that was good.

And obviously, Dennis Sternberg.

Good to have you here in studio talking about this.

I hope you get the money soon, because I tell you what, we're Arkansans, we're thirsty, and we need to be able to flush the toilet.

I'm just putting that out there.

I'm very optimistic.

The governor and the legislators will come together and a lot of them are really.

Okay.

All right.

Well, I want to thank you for joining us.

I'm Donna Tyrrell.

We'll see you next week.

Support for Arkansas week provided by the Arkansas Democrat-Gazette, The Arkansas Times and KUAR FM 89.