$75 million prison request advances

LITTLE ROCK — A legislative panel on Tuesday advanced the state Department of Corrections’ request for the transfer of $75 million in state restricted reserve funds to the department for the proposed North Central Unit expansion in Calico Rock.

The Legislative Council’s performance evaluation and expenditure review subcommittee recommended the Legislative Council approve the fund transfer request without any questions from lawmakers. The council is scheduled to meet Friday.

The funding will be used for the initial costs associated with the expansion of the Division of Correction’s North Central Unit, Department of Corrections Secretary Solomon Graves said in a letter dated Nov. 10 to Gov. Asa Hutchinson.

Expansion of the North Central Unit is projected to add 498 beds to the facility, department spokeswoman Cindy Murphy said after the legislative panel’s meeting.

Asked about the timing of the request for the fund transfer, she said, “the funds were appropriated for disbursement during this fiscal year. There is nothing significant about this particular date.”

The department has interviewed architects for the project, and formal selection of the project architect is proceeding through the procurement process, Murphy said.

Bids for a project contractor will be sought once final plans are developed and approved next year, she said.

“A project completion date will not be set until a contractor is selected,” Murphy said.

The legislative panel also recommended the Legislative Council approve the state Department of Finance and Administration’s request for $1.3 million in state restricted

reserve funds to contract with a vendor to conduct an independent review of the financial and operational viability for up to 26 rural hospitals and critical access hospitals. The review was proposed after some lawmakers raised questions about setting aside more federal American Rescue Funds for rural hospitals.

These hospitals were selected by the state Department of Human Services on the basis they are either nonsystem, noncritical access hospitals located in counties with a population of 50,000 or less or nonsystem critical access hospitals, said Alan McVey, chief of staff and chief financial officer for the state Department of Finance and Administration, in a letter to the department’s secretary, Larry Walther.

The finance department has proposed contracting with New York-based Alvarez & Marsal Holdings to conduct the financial viability assessment of rural hospitals.