Legislature(1993 - 1994)

03/28/1994 01:25 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         March 28, 1994                                        
                            1:35 P.M.                                          
                                                                               
  TAPE HFC 94 - 95, Side 1, #000 - end.                                        
  TAPE HFC 94 - 95, Side 2, #000 - end.                                        
  TAPE HFC 94 - 96, Side 1, #000 - end.                                        
  TAPE HFC 94 - 96, Side 2, #000 - #577.                                       
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson called  the House Finance  Committee meeting                 
  to order at 1:35 P.M.                                                        
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Hoffman                         
  Co-Chair MacLean              Representative Martin                          
  Vice-Chair Hanley             Representative Navarre                         
  Representative Brown          Representative Parnell                         
  Representative Grussendorf    Representative Therriault                      
  Representative Foster                                                        
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative  Fran  Ulmer;  Representative  Jim  Nordlund;                 
  Representative    Eldon    Mulder;   Senator    Judy   Salo;                 
  Representative  John  Davies; Representative  Ramona Barnes;                 
  Melva Krogseng,  Staff, Representative Barnes;  Mike Greany,                 
  Director, Legislative  Finance Division;  J. Frank  Prewitt,                 
  Commissioner,  Department  of  Corrections; Diane  Schenker,                 
  Special  Assistant,  Department   of  Corrections;   Shirley                 
  Minnick,  Director,  Division  of  Administrative  Services,                 
  Department    of    Corrections;    Ron   Lind,    Director,                 
  Administrative  Services,  Department of  Transportation and                 
  Public Facilities.                                                           
                                                                               
  SUMMARY                                                                      
  HB 370    An Act making appropriations for the operating and                 
            loan program expenses  of state government and  to                 
            capitalize funds; and  providing for an  effective                 
            date.                                                              
                                                                               
            DEPARTMENT OF  CORRECTIONS AND  THE DEPARTMENT  OF                 
            TRANSPORTATION   AND   PUBLIC   FACILITIES  BUDGET                 
            CLOSEOUTS                                                          
                                                                               
  DEPARTMENT OF CORRECTIONS                                                    
                                                                               
  REPRESENTATIVE RAMONA  BARNES, SPEAKER OF THE  HOUSE, stated                 
                                                                               
                                1                                              
                                                                               
                                                                               
  that the  Department of  Corrections' Subcommittee  achieved                 
  the  target reduction of  $5,819.9 million dollars specified                 
  by  the  House  Finance Committee  including  a  transfer of                 
  $1,966.4 million  dollars to  the Department  of Health  and                 
  Social Services and  new program  receipt authority for  new                 
  revenues  which would  be added  in the  amount of  $1,584.6                 
  million dollars.  Speaker Barnes provided the Committee with                 
  an  overview  of  the Subcommittee's  work  including budget                 
  increments and decrements.  [Copy on file].                                  
                                                                               
  Speaker  Barnes   stated  that  all   requests  for  repair,                 
  maintenance, or building materials would be denied and would                 
  be  considered  in the  capital  budget.   All  requests for                 
  training funds would  be denied  pointing out that  training                 
  should be addressed  by the  Correctional Academy.   Tuition                 
  and registration fees  would be  deleted in all  institution                 
  components emphasizing  that employees should pay  their own                 
  registration and fees.                                                       
                                                                               
  Speaker Barnes understood  that the DOC  Subcommittee budget                 
  would reflect  an impact  to the  Department of  Corrections                 
  status quo  in comparison to the current  fiscal year budget                 
  or the budget recommended by the Governor.                                   
                                                                               
  Co-Chair MacLean asked  the impact  of deleting the  alcohol                 
  and drug  abuse component.  Representative  Hanley commented                 
  that the $700  thousand dollars which was originally  in the                 
  Department  of  Corrections' budget  had  been RSA'd  to the                 
  Department of Health and Social Services' budget.                            
                                                                               
  Representative Grussendorf advised that the newly introduced                 
  crime  bills  should  be considered  in  this  years' fiscal                 
  budget for the Department.   Speaker Barnes replied that the                 
  current  budget  process  is  not  responsible to  fund  new                 
  legislation  and  that it  should  be funded  through fiscal                 
  notes.  She added  that the new crime legislation  would not                 
  affect the FY95 budget.                                                      
                                                                               
  Speaker Barnes remarked that the 50 new beds at Spring Creek                 
  would be  maximum security beds.  Project  Hope was intended                 
  to house offenders who had up to two years of their sentence                 
  left   and   who  do   not   require  the   security  level.                 
  Representative Barnes stated that  the classification system                 
  currently being  used by  the Department  could not  release                 
  enough offenders to  Project Hope.    She  added, that  when                 
  Project Hope becomes  fully utilized, the beds will cost the                 
  State $35 dollars  per day as  opposed to the current  daily                 
  cost of $113 dollars.                                                        
                                                                               
  Representative Brown MOVED to WITHDRAW  Amendment #1.  There                 
  being NO OBJECTION, it was withdrawn.                                        
                                                                               
                                                                               
                                2                                              
                                                                               
                                                                               
  Representative Navarre MOVED  to HOLD  Amendment #2.   There                 
  being NO OBJECTION, it was held.                                             
                                                                               
  Representative Navarre MOVED  to HOLD  Amendment #3.   There                 
  being NO OBJECTION, it was held.                                             
                                                                               
  Representative  Brown  MOVED to  HOLD  Amendment #4.   There                 
  being NO OBJECTION, it was held.                                             
                                                                               
  Representative Navarre MOVED  to HOLD  Amendment #5.   There                 
  being NO OBJECTION, it was held.                                             
                                                                               
  Representative Brown MOVED to adopt Amendment #6 which would                 
  restore   the   reductions  made   by   the   House  Finance                 
  Subcommittee and would add funding to the level requested by                 
  the   Governor's  amended  budget   for  the  Department  of                 
  Corrections.                                                                 
                                                                               
  J. FRANK PREWITT,  COMMISSIONER, DEPARTMENT OF  CORRECTIONS,                 
  pointed  out  that   two  weeks   ago,  the  Department   of                 
  Corrections facilities hit  a record high, holding  350 more                 
  prisoners than the FY94 funded maximum capacity.  During the                 
  last ten years, the inmate population  has grown at the rate                 
  of 8.2% per year.  In the past twelve months the growth rate                 
  has increased to 11.6% per year.  He elaborated that a  hard                 
  bed has not been added to the system since 1988.                             
                                                                               
  Commissioner Prewitt advised that practices occurring within                 
  the state prison system are at  an "emergency capacity".  He                 
  elaborated that  "emergency capacity"  is the  point when  a                 
  correctional  system begins  to  break  down.   Commissioner                 
  Prewitt listed signs of emergency capacity:                                  
                                                                               
       1.   Staff burnout.                                                     
                                                                               
       2.   Inmate tension.                                                    
                                                                               
       3.   Building  and  security   equipment  deteriorating                 
       faster than    repairs can be made.                                     
                                                                               
       4.   Incidents of violence.                                             
                                                                               
  Commissioner Prewitt commented that  the Governor's proposed                 
  budget would add  261 high, medium  and low custody beds  to                 
  the  system.   The  Governor's  budget  would  also take  an                 
  aggressive  stand   on  alcohol   treatment  needed   during                 
  incarceration.   That budget  would keep  the system  out of                 
  crisis for  one to two years.  He stressed that adopting the                 
  budget proposed by the subcommittee  would close prisons and                 
  probation  offices  which  would  be  an assault  on  public                 
  safety.  Commissioner  Prewitt urged the Committee  to amend                 
  the proposed subcommittee budget or  to adopt the Governor's                 
                                                                               
                                3                                              
                                                                               
                                                                               
  recommended budget.                                                          
                                                                               
  Discussion  followed  among Committee  members, Commissioner                 
  Prewitt and Speaker  Barnes regarding  Project Hope and  the                 
  number of  beds held  at that  institution  and the  general                 
  overcrowding  conditions  occurring  throughout  the  Alaska                 
  State prison system.                                                         
                                                                               
  Representative  Barnes  pointed  out that  the  misdemeanant                 
  population has been  on the rise for  many years.   She felt                 
  that there are  a number of ways to bring  down that number,                 
  specifically by opening the Palmer Center.                                   
                                                                               
  (Tape Change, HFC 94-95, Side 2).                                            
                                                                               
  Commissioner  Prewitt  clarified that  the  conditions which                 
  drive the Department  of Corrections  budget are supply  and                 
  demand.   He added  that beds at Project  Hope will be full.                 
  The needs submitted by the Department are over and above the                 
  120 inmates  who can be  placed at Project  Hope.  He  added                 
  that  the Department does  not have the  ability to classify                 
  offenders at Project Hope.  Those offenders have to go there                 
  voluntarily,  consequently  those  beds  are  designated  at                 
  minimum  custody.   The  furlough  policy makes  an offender                 
  eligible to go  to Project  Hope when they  have served  one                 
  third of  their  sentence  and  are within  three  years  of                 
  release.  Commissioner Prewitt pointed out that Project Hope                 
  is competing for the same type  of offenders as the half way                 
  houses.                                                                      
                                                                               
  Commissioner Prewitt stressed that zoning for a misdemeanant                 
  facility is not  the problem, whereas,  the need of beds  in                 
  any facility is the issue.   He felt that without these beds                 
  there will be a crisis.                                                      
                                                                               
  Speaker  Barnes proposed  to hold  open  the section  of the                 
  budget dealing with  soft bed funding and the possibility of                 
  fund   allocations   to  Wildwood   Correctional  Institute.                 
  Representative Navarre  suggested that the  incremental cost                 
  of the Wildwood beds would be $41 dollars per day which does                 
  not address the  overcrowding currently existing  within the                 
  Department.                                                                  
                                                                               
  Commissioner  Prewitt expressed  his  commitment to  Project                 
  Hope, pointing out that there are  over forty people at that                 
  facility.   He added that  the project is presently involved                 
  in mental health litigation.   Speaker Barnes indicated that                 
  the problem within the Department of Corrections is with the                 
  classification system used.   She expounded that  the system                 
  used in Alaska is the highest cost in the world, and pointed                 
  out that the  Commissioner has furlough policies  and matrix                 
  systems which have been  rewritten under that classification                 
                                                                               
                                4                                              
                                                                               
                                                                               
  system.  She thought  that the system could not  address the                 
  concerns  of  the  Committee  and  should  be  rewritten  to                 
  simplify it.                                                                 
                                                                               
  MELVA KROGSENG, STAFF, REPRESENTATIVE  BARNES, read a letter                 
  to   Dr.   Robert  Levinson   from   Robert  Spinde,   Chief                 
  Classification Officer addressing the classification process                 
  and  the  revised furlough  policy.   [Copy  on file].   The                 
  letter  indicated that the  furlough policy  was implemented                 
  because of Legislative action.                                               
                                                                               
  Representative  Grussendorf  asked  the  funding  needed  to                 
  effectively run the Department of Corrections.  Commissioner                 
  Prewitt explained  that "a prison  is a city  under marshall                 
  law" and added   that  the budget proposed  by the  Governor                 
  would take the  Department out of  a crisis posture for  one                 
  year.  He pointed  out that currently a contempt  motion has                 
  been made for the overcrowding  condition in Alaska prisons.                 
  If the  Governor's budget  is adopted,  the system could  be                 
  placed to "full".  Commissioner Prewitt concluded that there                 
  is an 8%-10% growth occurring each year in Alaska.                           
                                                                               
  Discussion  followed   among  Committee   members  and   the                 
  Commissioner regarding the  high prison  costs in Alaska  as                 
  compared to Missouri.  Commissioner Prewitt pointed out that                 
  the  State  does  not  spend  a  higher  percentage  of  the                 
  operating budget than  other states on corrections.   Alaska                 
  spends only five (5%) percent of the budget.                                 
                                                                               
  REPRESENTATIVE FRAN  ULMER acknowledged that  the Department                 
  of Corrections  is currently in a crisis  situation and that                 
  the court decision  pending could  demand that prisoners  be                 
  released because of over crowding.   She emphasized that the                 
  Legislature has been  informed of  the ramifications of  the                 
  pending actions.                                                             
                                                                               
  Commissioner Prewitt responded to  the classification system                 
  inquiry pointing  out that  the Department  was specifically                 
  told  not to use  Project Hope for  misdemeanant offenders.                  
  He added that the  purpose of  the classification  system is                 
  to lower  custody of  offenders in  order  that more  people                 
  released  would be able to  go out into  the community.  The                 
  same result has been accomplished  with the furlough policy.                 
  He  commented  that  the  furlough  policy  has  come  under                 
  criticism  now  as  sex  offenders  are  being  treated  and                 
  released.  Project  Hope has not been fully utilized because                 
  of   concerns   regarding   public   safety   and   offender                 
  reformation.  Project  Hope has no  walls and no fences  and                 
  the Department can send only the offenders who volunteer for                 
  that  program.    Commissioner  Prewitt  added  that  he  is                 
  committed to fully utilizing Project Hope.                                   
                                                                               
                                                                               
                                5                                              
                                                                               
                                                                               
  (Tape Change, HFC 94-96, Side 1).                                            
                                                                               
  Representative  Ulmer  pointed  out  that  the  Correction's                 
  Subcommittee never adequately addressed  the Governor's FY95                 
  amended  budget.     The  Commissioner  was  not   given  an                 
  opportunity  to  have  a  hearing   on  that  budget.    She                 
  emphasized that the  services provided by the  Department of                 
  Corrections are not optional.                                                
                                                                               
  Representative Ulmer summarized that the cap provided by the                 
  Subcommittee is  too low  and she  urged that  the Committee                 
  reconsider the cap.                                                          
                                                                               
  Representative Brown MOVED to reduce  the allocation made in                 
  Amendment #6  by $1  million dollars.   She  emphasized that                 
  there are not  enough funds  in the  Department's budget  to                 
  address  the major  crime  bills already  passed out  of the                 
  House of Representatives.  Representative Brown WITHDREW the                 
  MOTION to MOVE  the amendment.   Amendment #6  was HELD  for                 
  further consideration.                                                       
                                                                               
  Representative Navarre  MOVED to amend Amendment #5 changing                 
  the total restoration  to $158  million dollars which  would                 
  cover the  cost of  two assistant  superintendent positions.                 
  The  $883  thousand  dollars  would  be  allocated  for  the                 
  additional  fifty-nine  beds.   He  added that  Amendment #5                 
  would not be offered if there was agreement on Amendment #6.                 
                                                                               
                                                                               
  Representative Hanley  discussed the mental  health services                 
  for corrections.   He noted that Amendment  #7 would restore                 
  the  $1,966.4 GF/MHTIA  to  the Department  of  Corrections'                 
  budget  whereas  Amendment  #8 would  remove  an  additional                 
  $337.7 GF/MHTIA from  the Department of  Corrections' budget                 
  (associated with the deleted positions)  and insert $2,301.1                 
  GF/MHTIA in the  Department of  Health and Social  Services'                 
  budget.  Correctional  mental health services would  then be                 
  provided by Health and Social Services.                                      
                                                                               
  Commissioner  Prewitt  spoke  to  the  problems  within  the                 
  Department having dual supervision.   There is a balance  in                 
  the  Department  between public  safety,  protection  of the                 
  public and reformation of the offenders.  All programs would                 
  have to be done within security  constraints.  He asked that                 
  the  Committee  support Amendment  #7  which would  keep the                 
  component    within    the   Department    of   Corrections.                 
  Representative Ulmer  supported the component being  kept in                 
  the  Department  of Corrections.    Mel Krogseng  noted that                 
  Speaker Barnes supported keeping the entire component in the                 
  Department of Health  and Social Services and  urged support                 
  of  Amendment  #8.    She  indicated  support  also  for  an                 
  additional allocation of $334.7  to the Department's budget.                 
                                                                               
                                6                                              
                                                                               
                                                                               
  Discussion   followed  among   Committee  members   and  the                 
  Commissioner regarding the current treatment facilities.                     
                                                                               
  Representative   Hoffman  MOVED   to  adopt   Amendment  #7.                 
  Representative Hanley OBJECTED.                                              
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Hoffman, Martin, Navarre, Brown, Foster,                 
                      Grussendorf.                                             
       OPPOSED:       Parnell,  Therriault,  Hanley,   Larson,                 
                      MacLean.                                                 
                                                                               
  The MOTION PASSED (6-5).                                                     
                                                                               
  Amendment  #8 was WITHDRAWN.   There being  NO OBJECTION, it                 
  was so ordered.                                                              
                                                                               
  DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES                           
                                                                               
  Representative Navarre  MOVED  to adopt  Amendment #1  which                 
  would add $2,500.0  to the Department of  Transportation and                 
  Public  Facilities  (DOTPF)  for  statewide maintenance  and                 
  operations and would reduce  the Department of Environmental                 
  Conservations'  budget by  $2,500.0 million dollars  for the                 
  underground storage tank assistance program.  Representative                 
  Therriault OBJECTED.                                                         
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Navarre, Brown, Grussendorf, Hoffman.                    
       OPPOSED:       Martin,  Parnell,  Therriault,   Foster,                 
                      Hanley, MacLean, Larson.                                 
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  Representative Navarre noted a change  to Amendment #2 which                 
  would apply  $1.0 million dollars to the  budget deficit and                 
  $1.5   million  dollars  to  the  underground  storage  tank                 
  program, a  total reduction to  the storage tank  program of                 
  $2.5 million dollars.                                                        
  Representative  Navarre   MOVED  to   adopt  Amendment   #2.                 
  Representative Therriault OBJECTED.                                          
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Navarre,    Parnell,    Brown,   Foster,                 
                      Grussendorf, Hanley, Hoffman, MacLean.                   
       OPPOSED:       Therriault, Martin, Larson.                              
                                                                               
                                                                               
                                7                                              
                                                                               
                                                                               
  The MOTION PASSED (8-3).                                                     
                                                                               
  Representative  Navarre  MOVED  to  WITHDRAW  Amendment  #3.                 
  There being NO OBJECTION, it was withdrawn.                                  
                                                                               
  Representative Navarre  MOVED to  adopt  Amendment #4  which                 
  would allocate $1,500.0 million dollars to DOTPF's statewide                 
  maintenance and operations and would reduce that amount from                 
  the Alaska Tourism  Marketing Council  in the Department  of                 
  Commerce and Economic Development (DCED).                                    
                                                                               
  (Tape Change, HFC 94-96, Side 2).                                            
                                                                               
  MIKE   GREANY,   DIRECTOR,  LEGISLATIVE   FINANCE  DIVISION,                 
  explained that carry forward funds had been removed from the                 
  House recommendation in the amount  of $33.8 million dollars                 
  from  the Legislative budget.  He  added that carry forwards                 
  would be contained in the reappropriation legislation.                       
                                                                               
  Representative Navarre  MOVED to  change the  source of  the                 
  reduction  proposed  in  Amendment  #4  to  the  Legislative                 
  operating budget.                                                            
                                                                               
  Representative  Brown  asked  the reason  for  a  $3 million                 
  dollar increase to the Legislative budget for administrative                 
  services.  Mr.  Greany replied that  a new director for  the                 
  Legislative Affairs Agency  was approved by  the Legislature                 
  which would  eliminate the  former executive  administrative                 
  component,  combining  that  with  administrative  services.                 
  Consequently, there now  is one component rather  than three                 
  separate ones.                                                               
                                                                               
  Representative Parnell  pointed out that $8  million dollars                 
  would   be    dropped   from    the   Legislative    budget.                 
  Representative  Navarre  pointed out  that the  total amount                 
  available  to  the  Legislature  in  FY93  was  $38  million                 
  dollars, with  $8 million  carried forward.   He noted  that                 
  $30.6 million dollars was spent  by the Legislature in FY93.                 
  He  added  that  the FY95  budget  recommends  $33.8 million                 
  dollars as the available base.   Mr. Greany replied that the                 
  reappropriation bill  would be  the  appropriate vehicle  to                 
  make the reduction recommended by Representative Navarre.                    
                                                                               
  Discussion  followed among Committee  members and Mr. Greany                 
  regarding legislative carry  forward monies.  Representative                 
  Hanley  suggested  that  there  be  full discussion  of  the                 
  Legislative budget before making the recommended reductions.                 
  Representative  Navarre  MOVED  to  WITHDRAW  Amendment  #4.                 
  There being NO OBJECTION, it was withdrawn.                                  
                                                                               
  Representative Navarre MOVED to WITHDRAW Amendment  #5 which                 
  would add  to statewide maintenance and  operations $1,000.0                 
                                                                               
                                8                                              
                                                                               
                                                                               
  million dollars and would reduce  design and construction by                 
  $1,000.0 million dollars.  Representative Brown  OBJECTED to                 
  withdrawing the amendment.   Representative Navarre MOVED to                 
  change the amount proposed in Amendment #5 to $300  thousand                 
  dollars  and  asked  the impact  to  the  program  with that                 
  reduction.                                                                   
                                                                               
  RON LIND,  DIRECTOR, ADMINISTRATIVE SERVICES,  DEPARTMENT OF                 
  TRANSPORTATION   AND   PUBLIC  FACILITIES,   explained  that                 
  currently there is  $4.4 million dollars  in the design  and                 
  construction    component    in   the    operating   budget.                 
  Representative Foster  OBJECTED to  removing money  from the                 
  design and construction component.                                           
                                                                               
  Representative  Brown REMOVED  her OBJECTION  to withdrawing                 
  the  amendment.  Representative  Navarre MOVED  Amendment #5                 
  explaining the  extensive need  for further  maintenance and                 
  operation of roads  throughout the state.  Mr.  Lind pointed                 
  out that the  funding for design  and construction had  been                 
  established in each separate region.                                         
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Parnell,   Therriault,  Brown,   Foster,                 
                      Hanley,   Hoffman,   Martin,    Navarre,                 
                      MacLean, Larson.                                         
       OPPOSED:       Foster.                                                  
                                                                               
  The MOTION PASSED (10-1).                                                    
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 4:35 P.M.                                           
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         March 28, 1994                                        
                            1:35 P.M.                                          
                                                                               
  TAPE HFC 94 - 95, Side 1, #000 - end.                                        
  TAPE HFC 94 - 95, Side 2, #000 - end.                                        
  TAPE HFC 94 - 96, Side 1, #000 - end.                                        
  TAPE HFC 94 - 96, Side 2, #000 - #577.                                       
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson  called the House  Finance Committee meeting                 
  to order at 1:35 P.M.                                                        
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Hoffman                         
  Co-Chair MacLean              Representative Martin                          
                                                                               
                                9                                              
                                                                               
                                                                               
  Vice-Chair Hanley             Representative Navarre                         
  Representative Brown          Representative Parnell                         
  Representative Grussendorf    Representative Therriault                      
  Representative Foster                                                        
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative  Fran  Ulmer;  Representative  Jim  Nordlund;                 
  Representative    Eldon    Mulder;   Senator    Judy   Salo;                 
  Representative  John  Davies; Representative  Ramona Barnes;                 
  Melva Krogseng,  Staff, Representative Barnes;  Mike Greany,                 
  Director,  Legislative Finance  Division; J.  Frank Prewitt,                 
  Commissioner,  Department  of  Corrections; Diane  Schenker,                 
  Special  Assistant,  Department   of  Corrections;   Shirley                 
  Minnick,  Director,  Division  of  Administrative  Services,                 
  Department    of    Corrections;    Ron   Lind,    Director,                 
  Administrative  Services,  Department of  Transportation and                 
  Public Facilities.                                                           
                                                                               
  SUMMARY                                                                      
                                                                               
  HB 370    An Act making appropriations for the operating and                 
            loan  program expenses of  state government and to                 
            capitalize funds;  and providing for  an effective                 
            date.                                                              
                                                                               
            DEPARTMENT  OF CORRECTIONS  AND THE  DEPARTMENT OF                 
            TRANSPORTATION   AND   PUBLIC   FACILITIES  BUDGET                 
            CLOSEOUTS                                                          
                                                                               
  DEPARTMENT OF CORRECTIONS                                                    
                                                                               
  REPRESENTATIVE RAMONA  BARNES, SPEAKER OF THE  HOUSE, stated                 
  that the  Department of  Corrections' Subcommittee  achieved                 
  the target reduction  of $5,819.9 million dollars  specified                 
  by  the  House  Finance Committee  including  a  transfer of                 
  $1,966.4 million  dollars to  the Department  of Health  and                 
  Social Services and  new program  receipt authority for  new                 
  revenues which  would  be added  in the  amount of  $1,584.6                 
  million dollars.  Speaker Barnes provided the Committee with                 
  an  overview  of the  Subcommittee's  work including  budget                 
  increments and decrements.  [Copy on file].                                  
                                                                               
  Speaker   Barnes  stated  that   all  requests  for  repair,                 
  maintenance, or building materials would be denied and would                 
  be  considered  in the  capital  budget.   All  requests for                 
  training funds would  be denied  pointing out that  training                 
  should be addressed  by the  Correctional Academy.   Tuition                 
  and registration fees  would be  deleted in all  institution                 
  components emphasizing that employees  should pay their  own                 
  registration and fees.                                                       
                                                                               
                                                                               
                               10                                              
                                                                               
                                                                               
  Speaker Barnes understood that  the DOC Subcommittee  budget                 
  would reflect  an impact  to the  Department of  Corrections                 
  status quo in comparison to  the current fiscal year  budget                 
  or the budget recommended by the Governor.                                   
                                                                               
  Co-Chair MacLean asked  the impact  of deleting the  alcohol                 
  and drug abuse  component.  Representative Hanley  commented                 
  that  the $700 thousand dollars which  was originally in the                 
  Department  of  Corrections' budget  had  been RSA'd  to the                 
  Department of Health and Social Services' budget.                            
                                                                               
  Representative Grussendorf advised that the newly introduced                 
  crime  bills  should  be considered  in  this  years' fiscal                 
  budget for  the Department.  Speaker Barnes replied that the                 
  current  budget  process  is  not  responsible to  fund  new                 
  legislation  and  that it  should  be funded  through fiscal                 
  notes.  She added  that the new crime legislation  would not                 
  affect the FY95 budget.                                                      
                                                                               
  Speaker Barnes remarked that the 50 new beds at Spring Creek                 
  would be maximum security beds.   Project Hope was  intended                 
  to house offenders who had up to two years of their sentence                 
  left   and   who  do   not   require  the   security  level.                 
  Representative Barnes stated  that the classification system                 
  currently being  used by  the Department  could not  release                 
  enough offenders to  Project Hope.    She  added, that  when                 
  Project  Hope becomes fully utilized, the beds will cost the                 
  State $35 dollars  per day as  opposed to the current  daily                 
  cost of $113 dollars.                                                        
                                                                               
  Representative Brown MOVED to WITHDRAW  Amendment #1.  There                 
  being NO OBJECTION, it was withdrawn.                                        
                                                                               
  Representative Navarre MOVED  to HOLD  Amendment #2.   There                 
  being NO OBJECTION, it was held.                                             
                                                                               
  Representative Navarre MOVED  to HOLD  Amendment #3.   There                 
  being NO OBJECTION, it was held.                                             
                                                                               
  Representative  Brown  MOVED to  HOLD  Amendment #4.   There                 
  being NO OBJECTION, it was held.                                             
                                                                               
  Representative Navarre MOVED  to HOLD  Amendment #5.   There                 
  being NO OBJECTION, it was held.                                             
                                                                               
  Representative Brown MOVED to adopt Amendment #6 which would                 
  restore   the  reductions   made   by   the  House   Finance                 
  Subcommittee and would add funding to the level requested by                 
  the  Governor's  amended   budget  for  the  Department   of                 
  Corrections.                                                                 
                                                                               
  J. FRANK PREWITT,  COMMISSIONER, DEPARTMENT OF  CORRECTIONS,                 
                                                                               
                               11                                              
                                                                               
                                                                               
  pointed  out  that   two  weeks   ago,  the  Department   of                 
  Corrections facilities hit  a record high, holding  350 more                 
  prisoners than the FY94 funded maximum capacity.  During the                 
  last ten years, the inmate population  has grown at the rate                 
  of 8.2% per year.  In the past twelve months the growth rate                 
  has increased to 11.6% per year.   He elaborated that a hard                 
  bed has not been added to the system since 1988.                             
                                                                               
  Commissioner Prewitt advised that practices occurring within                 
  the state prison system are at  an "emergency capacity".  He                 
  elaborated that  "emergency capacity"  is the  point when  a                 
  correctional  system begins  to  break  down.   Commissioner                 
  Prewitt listed signs of emergency capacity:                                  
                                                                               
       1.   Staff burnout.                                                     
                                                                               
       2.   Inmate tension.                                                    
                                                                               
       3.   Building  and  security   equipment  deteriorating                 
       faster than    repairs can be made.                                     
                                                                               
       4.   Incidents of violence.                                             
                                                                               
  Commissioner Prewitt commented  that the Governor's proposed                 
  budget would add  261 high, medium  and low custody beds  to                 
  the system.    The  Governor's  budget would  also  take  an                 
  aggressive   stand  on   alcohol  treatment   needed  during                 
  incarceration.   That budget  would keep  the system out  of                 
  crisis for one to two years.  He  stressed that adopting the                 
  budget proposed by the subcommittee  would close prisons and                 
  probation  offices  which  would  be  an assault  on  public                 
  safety.  Commissioner  Prewitt urged the Committee  to amend                 
  the proposed subcommittee budget or  to adopt the Governor's                 
  recommended budget.                                                          
                                                                               
  Discussion  followed  among Committee  members, Commissioner                 
  Prewitt and Speaker  Barnes regarding  Project Hope and  the                 
  number  of beds  held at  that institution  and the  general                 
  overcrowding  conditions  occurring  throughout  the  Alaska                 
  State prison system.                                                         
                                                                               
  Representative  Barnes  pointed  out that  the  misdemeanant                 
  population has been  on the rise for  many years.   She felt                 
  that there are  a number of ways to bring  down that number,                 
  specifically by opening the Palmer Center.                                   
                                                                               
  (Tape Change, HFC 94-95, Side 2).                                            
                                                                               
  Commissioner  Prewitt  clarified that  the  conditions which                 
  drive the Department  of Corrections  budget are supply  and                 
  demand.   He added  that beds at Project  Hope will be full.                 
  The needs submitted by the Department are over and above the                 
                                                                               
                               12                                              
                                                                               
                                                                               
  120 inmates who  can be placed  at Project  Hope.  He  added                 
  that the  Department does not  have the ability  to classify                 
  offenders at Project Hope.  Those offenders have to go there                 
  voluntarily,  consequently  those  beds  are  designated  at                 
  minimum  custody.   The  furlough  policy makes  an offender                 
  eligible to go  to Project  Hope when they  have served  one                 
  third  of  their  sentence and  are  within  three years  of                 
  release.  Commissioner Prewitt pointed out that Project Hope                 
  is  competing for the same type of offenders as the half way                 
  houses.                                                                      
                                                                               
  Commissioner Prewitt stressed that zoning for a misdemeanant                 
  facility is not  the problem, whereas,  the need of beds  in                 
  any facility is the issue.  He felt that without these  beds                 
  there will be a crisis.                                                      
                                                                               
  Speaker  Barnes proposed  to  hold open  the section  of the                 
  budget  dealing with soft bed funding and the possibility of                 
  fund   allocations   to  Wildwood   Correctional  Institute.                 
  Representative Navarre  suggested that the  incremental cost                 
  of the Wildwood beds would be $41 dollars per day which does                 
  not address the overcrowding  currently existing within  the                 
  Department.                                                                  
                                                                               
  Commissioner  Prewitt  expressed his  commitment  to Project                 
  Hope, pointing out that there are  over forty people at that                 
  facility.   He added that  the project is presently involved                 
  in mental health litigation.   Speaker Barnes indicated that                 
  the problem within the Department of Corrections is with the                 
  classification system used.   She expounded that  the system                 
  used in Alaska is the highest cost in the world, and pointed                 
  out that the  Commissioner has furlough policies  and matrix                 
  systems which have been  rewritten under that classification                 
  system.  She thought  that the system could not  address the                 
  concerns  of  the  Committee  and  should  be  rewritten  to                 
  simplify it.                                                                 
                                                                               
  MELVA KROGSENG, STAFF, REPRESENTATIVE  BARNES, read a letter                 
  to   Dr.  Robert   Levinson   from  Robert   Spinde,   Chief                 
  Classification Officer addressing the classification process                 
  and  the  revised furlough  policy.   [Copy  on file].   The                 
  letter indicated that  the furlough  policy was  implemented                 
  because of Legislative action.                                               
                                                                               
  Representative  Grussendorf  asked  the  funding  needed  to                 
  effectively run the Department of Corrections.  Commissioner                 
  Prewitt explained  that "a prison  is a city  under marshall                 
  law" and added   that  the budget proposed  by the  Governor                 
  would take the  Department out of  a crisis posture for  one                 
  year.  He pointed  out that currently a contempt  motion has                 
  been made for the overcrowding  condition in Alaska prisons.                 
  If the Governor's  budget is  adopted, the  system could  be                 
                                                                               
                               13                                              
                                                                               
                                                                               
  placed to "full".  Commissioner Prewitt concluded that there                 
  is an 8%-10% growth occurring each year in Alaska.                           
                                                                               
  Discussion  followed   among  Committee   members  and   the                 
  Commissioner regarding the  high prison  costs in Alaska  as                 
  compared to Missouri.  Commissioner Prewitt pointed out that                 
  the  State  does  not  spend  a  higher  percentage  of  the                 
  operating budget than  other states on corrections.   Alaska                 
  spends only five (5%) percent of the budget.                                 
                                                                               
  REPRESENTATIVE FRAN  ULMER acknowledged that  the Department                 
  of Corrections is currently in  a crisis situation and  that                 
  the court decision  pending could  demand that prisoners  be                 
  released because  of over crowding.  She emphasized that the                 
  Legislature has been  informed of  the ramifications of  the                 
  pending actions.                                                             
                                                                               
  Commissioner Prewitt responded  to the classification system                 
  inquiry pointing  out that  the Department  was specifically                 
  told not  to use Project  Hope for misdemeanant  offenders.                  
  He added that the  purpose of  the classification  system is                 
  to lower  custody of  offenders  in order  that more  people                 
  released would be  able to go out  into the community.   The                 
  same result has been accomplished  with the furlough policy.                 
  He  commented  that  the  furlough  policy  has  come  under                 
  criticism  now  as  sex  offenders  are  being  treated  and                 
  released.   Project Hope has not been fully utilized because                 
  of   concerns   regarding   public   safety   and   offender                 
  reformation.  Project  Hope has no  walls and no fences  and                 
  the Department can send only the offenders who volunteer for                 
  that  program.    Commissioner  Prewitt  added  that  he  is                 
  committed to fully utilizing Project Hope.                                   
                                                                               
  (Tape Change, HFC 94-96, Side 1).                                            
                                                                               
  Representative  Ulmer  pointed  out  that  the  Correction's                 
  Subcommittee never adequately addressed  the Governor's FY95                 
  amended  budget.     The  Commissioner  was  not   given  an                 
  opportunity  to  have  a  hearing  on  that   budget.    She                 
  emphasized that the  services provided by the  Department of                 
  Corrections are not optional.                                                
                                                                               
  Representative Ulmer summarized that the cap provided by the                 
  Subcommittee is  too low and  she urged  that the  Committee                 
  reconsider the cap.                                                          
                                                                               
  Representative Brown MOVED to reduce  the allocation made in                 
  Amendment  #6 by $1  million dollars.   She  emphasized that                 
  there  are not  enough funds in  the Department's  budget to                 
  address the  major crime  bills already  passed  out of  the                 
  House of Representatives.  Representative Brown WITHDREW the                 
  MOTION to MOVE  the amendment.   Amendment #6  was HELD  for                 
                                                                               
                               14                                              
                                                                               
                                                                               
  further consideration.                                                       
                                                                               
  Representative Navarre MOVED to  amend Amendment #5 changing                 
  the total restoration  to $158  million dollars which  would                 
  cover the  cost of  two assistant  superintendent positions.                 
  The  $883  thousand  dollars  would  be  allocated  for  the                 
  additional  fifty-nine  beds.   He  added that  Amendment #5                 
  would not be offered if there was agreement on Amendment #6.                 
                                                                               
                                                                               
  Representative Hanley  discussed the mental  health services                 
  for corrections.  He noted  that Amendment #7 would  restore                 
  the  $1,966.4  GF/MHTIA to  the  Department of  Corrections'                 
  budget  whereas  Amendment  #8  would remove  an  additional                 
  $337.7 GF/MHTIA from the  Department of Corrections'  budget                 
  (associated with the deleted positions) and  insert $2,301.1                 
  GF/MHTIA in the  Department of  Health and Social  Services'                 
  budget.  Correctional  mental health services would  then be                 
  provided by Health and Social Services.                                      
                                                                               
  Commissioner  Prewitt  spoke  to  the  problems  within  the                 
  Department having  dual supervision.  There is  a balance in                 
  the Department  between  public safety,  protection  of  the                 
  public and reformation of the offenders.  All programs would                 
  have to be done within security  constraints.  He asked that                 
  the  Committee  support Amendment  #7  which would  keep the                 
  component    within    the   Department    of   Corrections.                 
  Representative Ulmer supported  the component being kept  in                 
  the  Department  of Corrections.    Mel Krogseng  noted that                 
  Speaker Barnes supported keeping the entire component in the                 
  Department of Health  and Social Services and  urged support                 
  of  Amendment  #8.    She  indicated  support  also  for  an                 
  additional allocation of $334.7  to the Department's budget.                 
                                                                               
                                                                               
  Discussion   followed  among   Committee  members   and  the                 
  Commissioner regarding the current treatment facilities.                     
                                                                               
  Representative   Hoffman  MOVED   to  adopt   Amendment  #7.                 
  Representative Hanley OBJECTED.                                              
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Hoffman, Martin, Navarre, Brown, Foster,                 
                      Grussendorf.                                             
       OPPOSED:       Parnell,  Therriault,  Hanley,   Larson,                 
                      MacLean.                                                 
                                                                               
  The MOTION PASSED (6-5).                                                     
                                                                               
  Amendment #8  was WITHDRAWN.   There being NO  OBJECTION, it                 
  was so ordered.                                                              
                                                                               
                               15                                              
                                                                               
                                                                               
  DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES                           
                                                                               
  Representative  Navarre MOVED  to  adopt Amendment  #1 which                 
  would add $2,500.0  to the Department of  Transportation and                 
  Public  Facilities  (DOTPF)  for statewide  maintenance  and                 
  operations and would reduce the  Department of Environmental                 
  Conservations' budget  by $2,500.0  million dollars for  the                 
  underground storage tank assistance program.  Representative                 
  Therriault OBJECTED.                                                         
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Navarre, Brown, Grussendorf, Hoffman.                    
       OPPOSED:       Martin,  Parnell,   Therriault,  Foster,                 
                      Hanley, MacLean, Larson.                                 
                                                                               
  The MOTION FAILED (4-7).                                                     
                                                                               
  Representative Navarre noted a change  to Amendment #2 which                 
  would apply $1.0 million dollars  to the budget deficit  and                 
  $1.5  million   dollars  to  the  underground  storage  tank                 
  program, a  total reduction to  the storage tank  program of                 
  $2.5 million dollars.                                                        
  Representative  Navarre   MOVED  to   adopt  Amendment   #2.                 
  Representative Therriault OBJECTED.                                          
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Navarre,    Parnell,   Brown,    Foster,                 
                      Grussendorf, Hanley, Hoffman, MacLean.                   
       OPPOSED:       Therriault, Martin, Larson.                              
                                                                               
  The MOTION PASSED (8-3).                                                     
                                                                               
  Representative  Navarre  MOVED  to  WITHDRAW  Amendment  #3.                 
  There being NO OBJECTION, it was withdrawn.                                  
                                                                               
  Representative  Navarre MOVED  to  adopt Amendment  #4 which                 
  would allocate $1,500.0 million dollars to DOTPF's statewide                 
  maintenance and operations and would reduce that amount from                 
  the Alaska Tourism  Marketing Council  in the Department  of                 
  Commerce and Economic Development (DCED).                                    
                                                                               
  (Tape Change, HFC 94-96, Side 2).                                            
                                                                               
  MIKE   GREANY,   DIRECTOR,  LEGISLATIVE   FINANCE  DIVISION,                 
  explained that carry forward funds had been removed from the                 
  House recommendation in the amount  of $33.8 million dollars                 
  from the Legislative budget.   He added that carry  forwards                 
  would be contained in the reappropriation legislation.                       
                                                                               
                                                                               
                               16                                              
                                                                               
                                                                               
  Representative Navarre  MOVED to  change the  source of  the                 
  reduction  proposed  in  Amendment  #4  to  the  Legislative                 
  operating budget.                                                            
                                                                               
  Representative  Brown  asked  the reason  for  a  $3 million                 
  dollar increase to the Legislative budget for administrative                 
  services.  Mr.  Greany replied that  a new director for  the                 
  Legislative Affairs Agency was  approved by the  Legislature                 
  which  would eliminate  the former  executive administrative                 
  component,  combining  that  with  administrative  services.                 
  Consequently, there now  is one component rather  than three                 
  separate ones.                                                               
                                                                               
  Representative Parnell pointed  out that $8 million  dollars                 
  would    be   dropped    from   the    Legislative   budget.                 
  Representative Navarre  pointed  out that  the total  amount                 
  available  to  the  Legislature  in  FY93  was  $38  million                 
  dollars, with  $8 million  carried forward.   He noted  that                 
  $30.6 million dollars  was spent by the Legislature in FY93.                 
  He  added  that  the FY95  budget  recommends  $33.8 million                 
  dollars as the available base.   Mr. Greany replied that the                 
  reappropriation  bill would  be the  appropriate  vehicle to                 
  make the reduction recommended by Representative Navarre.                    
                                                                               
  Discussion followed  among Committee members  and Mr. Greany                 
  regarding legislative carry forward monies.   Representative                 
  Hanley  suggested  that  there  be  full discussion  of  the                 
  Legislative budget before making the recommended reductions.                 
  Representative  Navarre  MOVED  to  WITHDRAW  Amendment  #4.                 
  There being NO OBJECTION, it was withdrawn.                                  
                                                                               
  Representative Navarre MOVED to WITHDRAW Amendment #5  which                 
  would add  to statewide maintenance and  operations $1,000.0                 
  million dollars and would reduce  design and construction by                 
  $1,000.0 million dollars.  Representative  Brown OBJECTED to                 
  withdrawing the  amendment.  Representative Navarre MOVED to                 
  change the amount  proposed in Amendment #5 to $300 thousand                 
  dollars  and  asked the  impact  to  the program  with  that                 
  reduction.                                                                   
                                                                               
  RON LIND,  DIRECTOR, ADMINISTRATIVE SERVICES,  DEPARTMENT OF                 
  TRANSPORTATION   AND   PUBLIC  FACILITIES,   explained  that                 
  currently there is  $4.4 million dollars  in the design  and                 
  construction    component    in   the    operating   budget.                 
  Representative Foster  OBJECTED to  removing money  from the                 
  design and construction component.                                           
                                                                               
  Representative  Brown REMOVED  her OBJECTION  to withdrawing                 
  the amendment.   Representative Navarre  MOVED Amendment  #5                 
  explaining the  extensive need  for further maintenance  and                 
  operation of roads  throughout the state.   Mr. Lind pointed                 
  out that the  funding for design  and construction had  been                 
                                                                               
                               17                                              
                                                                               
                                                                               
  established in each separate region.                                         
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      Parnell,   Therriault,  Brown,   Foster,                 
                      Hanley,   Hoffman,    Martin,   Navarre,                 
                      MacLean, Larson.                                         
       OPPOSED:       Foster.                                                  
                                                                               
  The MOTION PASSED (10-1).                                                    
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 4:35 P.M.                                           
                                                                               
                                                                               
                               18                                              

Document Name Date/Time Subjects