Senator Bruce Maloch of Magnolia has been named as one of three state senators designated to approve the release of monies from the newly-created $173.6 million COVID-19 Rainy Day Fund.
The move to create the account from previously unallocated state surplus funds was signed into law Saturday by Gov. Asa Hutchinson after an emergency three-day legislative session of the Arkansas General Assembly. Both the state House and Senate unanimous approved identical bills.
The governor can access the funds with the approval of the legislative leaders. Maloch, a senator for Arkansas’ District 12, is one of those named leaders who will help control the purse strings on the account.
Monies will be issued to state agencies such as the Arkansas Department of Health and the Division of Emergency Management for resources to purchase equipment such as ventilators.
“Speed is critical in controlling the spread of COVID-19, the potentially fatal disease associated with the outbreak of the coronavirus,” said Maloch in a statement. “For that reason, the legislation sets up a streamlined process for disbursing the $173.6 million in the fund.”
Had the state legislature not created the new fund and the monies remained in their previous accounts, the monies would have taken much longer to legally disburse, according to Maloch.
Under the rules of the new rainy day fund, capital can be released both electronically or in writing, subject to the approval of six legislators or their designees: the President of the Senate and the House Speaker, the majority leaders of the Senate and House and the Minority Leaders of the Senate and House.
Senator Keith Ingram, a Democrat from West Memphis and Senate Minority Leader, on Monday designated Maloch as a voter for when and how to disburse monies from the COVID-19 fund.
“Because of his background in banking and the law, combined with his extensive legislative experience, Senator Maloch has the expertise to navigate the complex process of releasing funds quickly,” Ingram said.
Maloch, a Columbia County native, has been with Farmers Bank & Trust for nearly 35 years and serves as the bank’s chief operating officer and general counsel.
“I appreciate Senator Ingram’s confidence in my abilities,” said Maloch. “This is my top priority. The people on the front lines need ventilators and personal protective equipment. Families have been hit hard financially and the state has to be there for them.”
The outbreak of the coronavirus caused a sudden and severe downturn in the economy, which in turn caused the state government to reduce spending. Under the Arkansas balanced budget law, state agencies must lower expenditures by $353 million before June 30.
The state legislature created the COVID-19 fund to prevent cuts in vital service agencies such as the state Health Department, the Division of Emergency Management, the Human Services Department, Workforce Services and other agencies working to protect Arkansas citizens from the coronavirus.
For most people, the new coronavirus causes mild or moderate symptoms, such as fever and cough that clear up in two to three weeks. For some, especially older adults and people with existing health problems, it can cause more severe illness, including pneumonia.
State Commerce Secretary said Arkansas processed 30,000 new applications for unemployment this past week, a record number and an increase over the 9,400 the state saw the previous week. Preston said the department is expanding its capability, including making the website for applications available seven days a week.
“This is a health crisis we’re facing in Arkansas, but it is also a financial crisis for many Arkansans,” Hutchinson said Saturday after signing the bills into law.
The creation of the fund to respond to the outbreak capped a marathon session that began Thursday. Hutchinson called the session in response to a $353 million shortfall he said the state faced because of the coronavirus.
$45M ALREADY APPROVED
Gov. Asa Hutchinson announced Monday that legislative leaders approved his administration’s request to tap $45 million from the covid-19 rainy-day fund.
Larry Walther, secretary of the state Department of Finance and Administration, said $30 million of the request will be used to purchase personal protective equipment for the state’s hospitals, first responders, community health clinics and others whose work is critical to the response to the ongoing crisis.
An additional $13.5 million will be used to purchase more ventilators and associated parts and equipment as well as any shipping or freight charges required to equip the state’s hospitals with this life-saving equipment, Walther said.
Another $1.5 million will be directed to the Arkansas Department of Health to support a public awareness and communications campaign aimed at keeping citizens informed with timely, accurate information, he said.
Walther said that the recently enacted provisions of the federal CARES Act may allow the state to claim the requested funds as costs associated with the state’s response to the covid-19 crisis and to be fully reimbursed.
Some information in this article was contributed by the Andrew DeMillo of the Associated Press and Michael Wickline of the Arkansas Democrat-Gazette.
Larry Walther, secretary of the state Department of Finance and Administration, said $30 million of the request will be used to purchase personal protective equipment for the state’s hospitals, first responders, community health clinics and others whose work is critical to the response to the ongoing crisis.
An additional $13.5 million will be used to purchase more ventilators and associated parts and equipment as well as any shipping or freight charges required to equip the state’s hospitals with this life-saving equipment, Walther said.
Another $1.5 million will be directed to the Arkansas Department of Health to support a public awareness and communications campaign aimed at keeping citizens informed with timely, accurate information, he said.
Walther said that the recently enacted provisions of the federal CARES Act may allow the state to claim the requested funds as costs associated with the state’s response to the covid-19 crisis and to be fully reimbursed.
Some information in this article was contributed by the Andrew DeMillo of the Associated Press and Michael Wickline of the Arkansas Democrat-Gazette.