Legislature(2013 - 2014)HOUSE FINANCE 519

01/23/2013 01:30 PM House FINANCE


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01:32:45 PM Start
01:33:33 PM Fy14 Governor's Budget Overview: Department of Public Safety
02:48:55 PM Fy14 Governor's Budget Overview: Department of Corrections
03:34:25 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 65 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
+= HB 66 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
+ Governor's FY14 Budget Overview: TELECONFERENCED
- Dept. of Public Safety
- Dept. of Corrections
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                     January 23, 2013                                                                                           
                         1:32 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
1:32:45 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  Austerman  called   the  House  Finance  Committee                                                                    
meeting to order at 1:32 p.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Alan Austerman, Co-Chair                                                                                         
Representative Bill Stoltze, Co-Chair                                                                                           
Representative Mark Neuman, Vice-Chair                                                                                          
Representative Mia Costello                                                                                                     
Representative Bryce Edgmon                                                                                                     
Representative Les Gara                                                                                                         
Representative David Guttenberg                                                                                                 
Representative Lindsey Holmes                                                                                                   
Representative Cathy Munoz                                                                                                      
Representative Steve Thompson                                                                                                   
Representative Tammie Wilson                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Joe  Joseph  Masters,  Commissioner,  Department  of  Public                                                                    
Safety;  Jeff Hoover,  Director, Division  of Administrative                                                                    
Services,  Department  of  Public  Safety;  Joseph  Schmidt,                                                                    
Commissioner, Department of  Corrections; Ron Taylor, Deputy                                                                    
Commissioner,  Department  of Corrections;  Leslie  Houston,                                                                    
Deputy    Commissioner,     Department    of    Corrections;                                                                    
Representative Doug Isaacson.                                                                                                   
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
FY14 GOVERNOR'S BUDGET OVERVIEW:                                                                                                
                                                                                                                                
     Department of Public Safety                                                                                                
                                                                                                                                
     Department of Corrections                                                                                                  
                                                                                                                                
HB 65     APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
                                                                                                                                
          HB 65 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
HB 66     APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          HB 66 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
HOUSE BILL NO. 65                                                                                                             
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs,    capitalizing   funds,   amending                                                                    
     appropriations,   and   making  reappropriations;   and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
HOUSE BILL NO. 66                                                                                                             
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive mental health  program; and providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
^FY14  GOVERNOR'S  BUDGET  OVERVIEW:  DEPARTMENT  OF  PUBLIC                                                                  
SAFETY                                                                                                                        
                                                                                                                                
1:33:33 PM                                                                                                                    
                                                                                                                                
JOE  JOSEPH  MASTERS,  COMMISSIONER,  DEPARTMENT  OF  PUBLIC                                                                    
SAFETY (DPS), introduced himself for the record.                                                                                
                                                                                                                                
Commissioner Masters began  a PowerPoint Presentation titled                                                                    
"Department    of    Public   Safety    Department    Budget                                                                    
Overview"(copy  on  file)  and   introduced  his  staff.  He                                                                    
indicated that there was a  large amount of information held                                                                    
within the  overview slides  and that he  did not  intend to                                                                    
spend a lot of time on the minute details.                                                                                      
                                                                                                                                
Commissioner  Masters discussed  slide 2  titled "Department                                                                    
of Public Safety."                                                                                                              
                                                                                                                                
     Our Mission:                                                                                                             
                                                                                                                                
     To ensure public safety and enforce fish and wildlife                                                                      
     laws                                                                                                                       
     AS 44.41.020                                                                                                               
                                                                                                                                
     Our Core Services                                                                                                        
                                                                                                                                
        · Law Enforcement Patrol and Investigations                                                                             
        · Rural Law Enforcement                                                                                                 
        · Domestic Violence and Sexual Assault Programs                                                                         
        · Statewide Public Safety Programs                                                                                      
        · Resource Protection                                                                                                   
        · Highway Safety                                                                                                        
                                                                                                                                
Commissioner Masters stated that  DPS's mission was found in                                                                    
Title 44 and was very broad in statute                                                                                          
                                                                                                                                
Commissioner    Masters   spoke    to    slide   3    titled                                                                    
"Organizational  Chart."  He   related  that  DPS's  largest                                                                    
division was  the Division of  Alaska State  Troopers (AST),                                                                    
which  provided  law   enforcement  activities.  The  Alaska                                                                    
Wildlife  Troopers  (AWT), the  Division  of  Fire and  Life                                                                    
Safety,  the Division  of Administrative  Services, and  the                                                                    
Division of Statewide Services were  also housed within DPS.                                                                    
He mentioned  that DPS also contained  three councils, which                                                                    
were  the Council  on Domestic  Violence and  Sexual Assault                                                                    
(CDVSA), the  Alaska Fire Standards Council,  and the Alaska                                                                    
Police  Standards Council.  The  Alcoholic Beverage  Control                                                                    
Board,  which had  previously been  housed in  DPS, was  now                                                                    
contained under  the Department  of Commerce,  Community and                                                                    
Economic Development (DCCED).                                                                                                   
                                                                                                                                
1:37:58 PM                                                                                                                    
                                                                                                                                
Commissioner  Masters addressed  slide  4 titled  "Statewide                                                                    
Impact."                                                                                                                        
                                                                                                                                
   · DPS is the primary statewide law enforcement agency                                                                        
   · Direct support Investigative assistance                                                                                    
                                                                                                                                
        · Search and rescue                                                                                                     
        · Training                                                                                                              
        · Alaska Public Safety Information Network (APSIN)                                                                      
        · Crime lab                                                                                                             
                                                                                                                                
Commissioner Masters  stated that  the Division of  AST were                                                                    
viewed as the  face of DPS, but related  that the department                                                                    
had  a  much broader  mission.  He  furthered that  DPS  has                                                                    
statutory  responsibilities  to  provide direct  support  to                                                                    
local communities,  municipal law enforcement  agencies, and                                                                    
search and  rescue operations. In  2012, DPS  provided 7,072                                                                    
assists  to  local  agencies,  313   of  which  were  direct                                                                    
assistances from  DPS's Alaska  Bureau of  Investigation. In                                                                    
2012, the department participated  in 677 search and rescues                                                                    
that involved 1080 people. He  pointed out that although DPS                                                                    
had various  search and rescue  obligations, that  aspect of                                                                    
the department's  mission was largely met  through volunteer                                                                    
organizations, as  well as other  professional organizations                                                                    
such as fire departments  and other rescue organizations. He                                                                    
discussed  DPS's training  academy  for  law enforcement  in                                                                    
Sitka that  provided training for state  troopers, municipal                                                                    
police officers, village public  safety officers (VPSO), and                                                                    
village  police  officers;  the  department  also  conducted                                                                    
training  to service  providers  and others  outside of  the                                                                    
agency.                                                                                                                         
                                                                                                                                
Co-Chair Austerman  recognized that  Representative Isaacson                                                                    
was present in audience.                                                                                                        
                                                                                                                                
Vice-Chair Neuman  inquired if the agency  provided training                                                                    
for  local   search  and  rescue   operations.  Commissioner                                                                    
Masters   responded   that    volunteer   and   professional                                                                    
organizations  had  a huge  role  in  search and  rescue  in                                                                    
Alaska and  although the department provided  some training,                                                                    
it  only represented  part of  what  occurred. He  mentioned                                                                    
that there were other training organizations in the state.                                                                      
                                                                                                                                
Commissioner Masters continued to discuss slide 4.                                                                              
                                                                                                                                
1:42:34 PM                                                                                                                    
                                                                                                                                
Representative  Costello  queried  if DPS  managed  the  sex                                                                    
offender  registry. Commissioner  Masters  responded in  the                                                                    
affirmative and  that the registry  was one of  the programs                                                                    
that were housed within the  Division of Statewide Services.                                                                    
Representative  Costello inquired  if the  commissioner knew                                                                    
how  many  sex offenders  were  currently  in the  registry.                                                                    
Commissioner  Masters responded  that  he did  not have  the                                                                    
information off hand,  but that he would provide  it for the                                                                    
committee.  He pointed  out that  the requested  information                                                                    
was also available  on DPS's website under  the sex offender                                                                    
registry section.                                                                                                               
                                                                                                                                
Commissioner  Masters stated  that  the next  set of  slides                                                                    
represented a more technical look at DPS's budget.                                                                              
                                                                                                                                
JEFF HOOVER, DIRECTOR,  DIVISION OF ADMINISTRATIVE SERVICES,                                                                    
DEPARTMENT  OF  PUBLIC  SAFETY,  discussed  slide  5  titled                                                                    
"FY2014  Operating Budget  by Fund  Source" and  stated that                                                                    
the department  had a $208.8  million budget, most  of which                                                                    
were  general  funds. The  general  funds  were made  up  of                                                                    
general  fund  match  and  general  fund  program  receipts.                                                                    
General   funds  represented   about  87   percent  of   the                                                                    
department's  budget.  In FY14,  there  was  an increase  of                                                                    
$12.2 million over  the prior budget; a lot  of the increase                                                                    
was  related  to backfilling  federal  and  other funds.  He                                                                    
offered that DPS's general fund  was only 3.6 percent of all                                                                    
agencies' general funds.                                                                                                        
                                                                                                                                
Mr. Hoover spoke to slide  6 titled "FY2014 Operating Budget                                                                    
by Organization." He  related that the AST  Division was the                                                                    
agency's  largest division  and  represented  53 percent  of                                                                    
DPS's total  budget. He pointed  to the five  divisions that                                                                    
Commissioner Masters  had talked about and  related that the                                                                    
VPSO program  was under AST. He  noted that AST and  the AWT                                                                    
were separate divisions,  but that they were  under the same                                                                    
the appropriation.                                                                                                              
                                                                                                                                
Mr.  Hoover  pointed to  slide  7  titled "FY2014  Operating                                                                    
Budget by Line Item." He  discussed that grants were a large                                                                    
piece of  DPS's budget; grants represented  about 15 percent                                                                    
of  the total  budget at  about $30.9  million. About  $15.6                                                                    
million  of the  grants were  for  VPSOs and  the CDVSA  was                                                                    
granted  about  $14.4  million.   He  shared  that  personal                                                                    
services represented about 56 percent of the budget.                                                                            
                                                                                                                                
1:47:23 PM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze noted that the  CDVSA programs were located                                                                    
in  DPS.  He  recalled   that  Commissioner  Streur  gave  a                                                                    
presentation  that showed  that a  fairly large  program for                                                                    
domestic violence  and sexual assault was  in the Department                                                                    
of Health  and Social Services  (DHSS); he inquired  why the                                                                    
DHSS  program was  not integrated  within DPS.  Commissioner                                                                    
Masters responded that he was  unaware of what items were in                                                                    
the DHSS budget.  He added that DPS had  certain programs in                                                                    
its budget  that were domestic  violence and  sexual assault                                                                    
related, but  were not CDVSA  related; he offered  that DHSS                                                                    
likely  had similar  items in  its budget.  He offered  that                                                                    
certain types of  funding went to the agency  best suited to                                                                    
deal with the issue and that  DHSS might be better suited to                                                                    
administer certain programs.                                                                                                    
                                                                                                                                
Co-Chair  Stoltze  interjected  that  there  was  a  general                                                                    
consensus  that DHSS  was better  suited  to administer  the                                                                    
grant functions of DPS.                                                                                                         
                                                                                                                                
Mr. Hoover  addressed slide 8  titled "Department  of Public                                                                    
Safety  Share  of  Total Agency  Operations."  Slide  8  was                                                                    
prepared  by the  Legislative Finance  Division  to show  an                                                                    
overall history of general funds  over nine years; there was                                                                    
an  increase in  the fund  during that  period of  about 7.9                                                                    
percent. He offered that a lot  of the increase was due back                                                                    
filling federal  and other funds  and related even  with the                                                                    
increase  over  9  years,  DPS's  percentage  of  the  total                                                                    
general funds from all agencies had remained rather flat.                                                                       
                                                                                                                                
Commissioner  Masters  reiterated  that  a  portion  of  the                                                                    
increases on  slide 8 were  attributed to general  funds and                                                                    
the  replacement of  diminishing federal  funding. He  noted                                                                    
that the larger increases in the  last few years were in the                                                                    
areas of improvements and enhancements  to the VPSO program,                                                                    
as well as new trooper positions.                                                                                               
                                                                                                                                
Representative  Gara   stated  that  "in  this   case,"  the                                                                    
majority of  the general  fund increase  was not  related to                                                                    
backfilling federal funds and  inquired if that was correct.                                                                    
Commissioner  Masters  responded  in  the  affirmative,  but                                                                    
added that  it was  accurate to  say that  a portion  of the                                                                    
increase was  due to backfilling funds.  The following slide                                                                    
would illustrate the changes to federal and other funding.                                                                      
                                                                                                                                
1:52:23 PM                                                                                                                    
                                                                                                                                
Mr. Hoover  spoke to  slide 9  titled "Department  of Public                                                                    
Safety  Percent of  the Total  Department's  Budget by  Fund                                                                    
Group."  The slide  depicted  the change  in  the makeup  of                                                                    
federal  and  other funds.  He  observed  that federal  fund                                                                    
authorization  had  peaked  in  FY10  and  that  other  fund                                                                    
authorization peaked  in FY12. He  relayed that in  the FY14                                                                    
budget,  $4.2  million was  shifted  to  general funds  from                                                                    
federal and  other funds; the  change was  primarily related                                                                    
to federal funding changes.                                                                                                     
                                                                                                                                
Co-Chair  Austerman inquired  how  far back  DPS could  look                                                                    
back  in  order to  examine  which  federal funds  had  been                                                                    
supplanted  with general  funds. Mr.  Hoover responded  that                                                                    
the department  could go  back and  look at  multiple years.                                                                    
Co-Chair  Austerman  requested  that   2005  be  used  as  a                                                                    
starting  point  to examine  which  federal  funds had  been                                                                    
supplanted  with  general  funds  and asked  Mr.  Hoover  to                                                                    
return  to the  committee with  the information.  Mr. Hoover                                                                    
responded in the affirmative.                                                                                                   
                                                                                                                                
Commissioner Masters  discussed slide  10 titled  "Status of                                                                    
Current Year."                                                                                                                  
                                                                                                                                
   Accomplishments                                                                                                              
     · Completion of New Crime Lab                                                                                              
     · Public Safety Academy Dining Hall                                                                                        
     · Selawik Post                                                                                                             
     · New Aircraft in Service                                                                                                  
     · Domestic & Sexual Violence Prevention Planning                                                                           
     · Highway Safety                                                                                                           
                                                                                                                                
   Challenges                                                                                                                   
     · Need for Core Police Services                                                                                            
     · VPSO Infrastructure and Retention                                                                                        
     · High Rate of Domestic Violence and Sexual Assault                                                                        
     · Federal Grant Reductions                                                                                                 
     · Bureau of Highway Patrol funding from Alaska Highway                                                                     
        Safety Office                                                                                                           
                                                                                                                                
Commissioner Masters  discussed the  first bullet  point and                                                                    
stated that DPS  had moved its staff and  scientists over to                                                                    
the new laboratory in June  of the current year; during this                                                                    
transitional period,  there was some backlog  buildup, which                                                                    
the  department  was  working on  eliminating.  Despite  the                                                                    
slowdown, DPS  was still  able to  keep up  with submissions                                                                    
into the lab  within a 30-day-period and  had eliminated DNA                                                                    
backlogs prior  to 2011. He  stated that the  department had                                                                    
fully functionalized  its Selawik  Post and relayed  that it                                                                    
had dramatically  reduced crime in the  area. The helicopter                                                                    
that  would be  used  in the  Interior  was currently  being                                                                    
built and was expected to  be delivered to Fairbanks in June                                                                    
of the  current year. The  department was in the  process of                                                                    
hiring a  pilot for the  helicopter. He discussed  the Green                                                                    
Dot, Girls on  The Run, Boys Can Run, and  Lead On programs.                                                                    
He pointed out  that the Coaching Boys into  Men program was                                                                    
a significant  program where people  in leadership  roles in                                                                    
schools  assisted athletes  who had  an informal  leadership                                                                    
role in  school. He discussed  the Fourth R  curriculum that                                                                    
assisted  students with  relationships. He  noted that  from                                                                    
2009  to 2012,  when the  Bureau  of Highway  Patrol was  in                                                                    
place,  Alaska experienced  the lowest  on record  number of                                                                    
fatal crashes  and DUI related  crashes. He stated  that the                                                                    
previous year,  DUI related  crashes represented  21 percent                                                                    
or 22  percent of  the total; historically,  this percentage                                                                    
was in  the 30th  percentile. He  concluded that  the number                                                                    
fatal crashes  were going down  while the volume  of traffic                                                                    
was  going up  and related  that  there were  only 59  fatal                                                                    
crashes the  previous year.  In 1975,  Alaska had  112 fatal                                                                    
crashes even though  the traffic volume was  much lower than                                                                    
it  was   currently.  He  offered  that   the  reduction  in                                                                    
fatalities were indicative of DPS's overall strategy.                                                                           
                                                                                                                                
2:01:00 PM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze stated that the  Alaska Court System budget                                                                    
had  an increment  for getting  "habitual traffic  violators                                                                    
back  on the  road"  and inquired  if  the Criminal  Justice                                                                    
Working  Group  had  consulted   DPS  about  the  increment.                                                                    
Commissioner Masters replied that  he had not personally had                                                                    
conversations  with  the  working  group, but  that  it  was                                                                    
possible they had contacted others.                                                                                             
                                                                                                                                
Co-Chair  Stoltze  asked  if the  Criminal  Justice  Working                                                                    
Group  would have  another meeting  in the  current session.                                                                    
Commissioner Masters  responded that  they met on  a regular                                                                    
basis and would meet again one  or two more times before the                                                                    
end of the current  session. Co-Chair Stoltze commented that                                                                    
he would require Commissioner Master's  blessing in order to                                                                    
pass  the  increment for  traffic  violators  in the  Alaska                                                                    
Court System's  budget. He pointed  out that  highway safety                                                                    
measures were  punitive for a purpose  and expressed concern                                                                    
that another branch of government  would be enabled to start                                                                    
an initiative to get habitual  traffic violators on the road                                                                    
faster than  the current legal system  allowed. Commissioner                                                                    
Masters responded  that the  criminal justice  working group                                                                    
was a very good group  that worked on enhancing the criminal                                                                    
justice system  to make sure  things worked as best  as they                                                                    
could. He  added that organizations  did not  always discuss                                                                    
everything  with other  agencies even  though they  might be                                                                    
affected by it.                                                                                                                 
                                                                                                                                
Co-Chair Stoltze inquired if there  was any ambiguity on the                                                                    
issue. Commissioner Masters replied that there was not.                                                                         
                                                                                                                                
2:04:27 PM                                                                                                                    
                                                                                                                                
Vice-Chair Neuman  mentioned the governor's request  that 15                                                                    
VPSO positions be  added each year and pointed  out that the                                                                    
program  currently  had  23 vacant  positions.  He  inquired                                                                    
where  and  how  the  funding   request  for  unfilled  VPSO                                                                    
positions  would be  spent.  Commissioner Masters  responded                                                                    
that the funding request was enough  to get the program to a                                                                    
certain  level of  personnel. He  mentioned  that the  VPSOs                                                                    
were not  state employees and that  non-profit organizations                                                                    
were  used to  administer the  program. He  stated that  any                                                                    
unspent  funds for  VPSO positions  were  being utilized  to                                                                    
enhance  the  program.  He  related   that  there  had  been                                                                    
considerable discussion  regarding the issue of  funding use                                                                    
and that  infrastructure support was a  particular challenge                                                                    
to  the program.  The  way the  VPSO  program was  currently                                                                    
structured,  there  were three  entities  in  charge of  its                                                                    
administration.   AST,  the   non-profit  agency,   and  the                                                                    
community all  worked together to implement  the program and                                                                    
facilitate   different   aspects   of   the   program.   The                                                                    
communities   were  required   to   provide  office   space,                                                                    
transportation,  communications  equipment,  and  a  holding                                                                    
cell; in  reality, some  of these  communities did  not have                                                                    
consistent  funding. He  concluded  that DPS  was using  the                                                                    
funds  to  assist communities  to  situate  themselves in  a                                                                    
position where they can accept and retain a VPSO.                                                                               
                                                                                                                                
2:08:15 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Neuman  noted that  some  of  the VPSO  position                                                                    
funding was being used for  the program's current needs, but                                                                    
that  the state  was  approaching a  time  when the  budgets                                                                    
would  probably be  more restrictive.  He  inquired how  the                                                                    
costs  of operations  and maintenance  of  the VPSO  program                                                                    
would be  covered in the  future after the "cushion"  of the                                                                    
position  funding was  gone. Commissioner  Masters responded                                                                    
that  DPS was  assisting  communities  with facilities  that                                                                    
were not state owned and  that the department would not have                                                                    
a  responsibility   to  the  facilities.  The   program  was                                                                    
structured  to encourage  communities to  tap other  revenue                                                                    
sources. He shared that the  VPSO program was never intended                                                                    
to be fully  funded by the state. He stated  that it was not                                                                    
his intent to  have the state fully  funding every component                                                                    
of the VPSO Program.                                                                                                            
                                                                                                                                
Co-Chair  Austerman noted  that time  was running  short and                                                                    
requested that  substantive questions  be saved for  the end                                                                    
of the meeting.                                                                                                                 
                                                                                                                                
Representative  Gara mentioned  the VPSO  turnover rate.  He                                                                    
stated that  some rural organizations  did not  believe they                                                                    
could  cover the  indirect  VPSO costs.  He  queried if  the                                                                    
communities were  responsible for part of  the VPSO's salary                                                                    
and  wondered if  it was  in statue  or by  arrangement that                                                                    
this  was  done.  He   further  inquired  what  Commissioner                                                                    
Master's stance  was towards the organizations  that claimed                                                                    
they  could not  pay the  indirect  costs and  as a  result,                                                                    
could not maintain a  VPSO. Commissioner Masters anticipated                                                                    
that  there would  be  further discussion  on  the issue  in                                                                    
subcommittee,  but that  the VPSO  Program  paid the  entire                                                                    
personal services cost of the  VPSOs; furthermore, there was                                                                    
a capped indirect rate of  15 percent to the non-profits. He                                                                    
stated  that the  15  percent capped  rate  caused the  non-                                                                    
profits issues  because the federal  programs had  a federal                                                                    
negotiated indirect rate; the  non-profits could not utilize                                                                    
other program costs to cover  the gap between the 15 percent                                                                    
and  their federally  negotiated rate.  He related  that the                                                                    
department  had been  meeting with  non-profits in  order to                                                                    
figure  out how  to stay  within the  available funding  and                                                                    
restructure   the    program   to    accommodate   concerns.                                                                    
Representative Gara  noted that he would  discuss the matter                                                                    
later with the commissioner, but  that the goal of adding 15                                                                    
VPSOs per year  was "going backwards" because  the state was                                                                    
losing a significant  percentage of the new  hires. He added                                                                    
that the  state was not meeting  the goal of 10  or 15 VPSOs                                                                    
per year.                                                                                                                       
                                                                                                                                
2:13:27 PM                                                                                                                    
                                                                                                                                
Commissioner Masters continued to discuss slide 10.                                                                             
                                                                                                                                
   Challenges                                                                                                                   
     · Need for Core Police Services                                                                                            
     · VPSO Infrastructure and Retention                                                                                        
     · High Rate of Domestic Violence and Sexual Assault                                                                        
     · Federal Grant Reductions                                                                                                 
     · Bureau of Highway Patrol funding from Alaska Highway                                                                     
        Safety Office                                                                                                           
                                                                                                                                
                                                                                                                                
Commissioner Masters related that  the current turnover rate                                                                    
in the VPSO Program was about  28 percent or 29 percent, but                                                                    
that the  number was significantly  lower than  the turnover                                                                    
rate that the program had  experienced in previous years; at                                                                    
one time,  the turnover  rate had been  over 50  percent. He                                                                    
pointed out that the previous  year, 28 VPSOs were added but                                                                    
that  "29 going  out the  back  door" made  it difficult  to                                                                    
achieve retention.  ["29" was  made in  reference to  the 29                                                                    
percent turnover rate.] DPS was  attempting to identify ways                                                                    
to  slow down  the attrition  rate  and make  the jobs  more                                                                    
appealing  to  applicants.  He discussed  the  first  bullet                                                                    
point  and stated  that additional  troopers were  needed in                                                                    
the Fairbanks  Interior Region, the  Mat-Su Valley,  and the                                                                    
Kenai  Peninsula. He  noted that  there was  an increase  in                                                                    
population over the  past decades and that DPS  had not kept                                                                    
pace  with additional  patrol troopers  in  those areas.  He                                                                    
offered  that there  was a  direct  correlation between  the                                                                    
population  in  a  service  area  and  how  many  calls  DPS                                                                    
received;  the  number of  service  calls  in Fairbanks  had                                                                    
nearly doubled between 2000 and  the current year. He stated                                                                    
that the  Mat-Su Region also  experienced a doubling  in the                                                                    
volume of  service calls from  2000 until the  current year.                                                                    
The current  patrol trooper staffing  was not  sufficient to                                                                    
have 24-7 coverage  at the Soldotna Post; there  were two or                                                                    
three days  per week where  the post  was not open  for full                                                                    
hours  with  an on  duty  trooper.  He discussed  the  third                                                                    
bullet point and  relayed that DPS was  continuing its fight                                                                    
against  domestic violence  and  sexual  assault. He  stated                                                                    
that the rates of domestic  violence and sexual assault were                                                                    
still high, but  pointed out that there  were some promising                                                                    
statistics.                                                                                                                     
                                                                                                                                
Commissioner Masters  discussed the fourth bullet  point and                                                                    
related that there was a  reduction of about $4.2 million in                                                                    
federal  receipts that  had  been  primarily covering  DPS's                                                                    
trooper  patrol positions  and sexual  assault units;  there                                                                    
would  be a  funding  increment requesting  to retain  these                                                                    
positions.                                                                                                                      
                                                                                                                                
Commissioner Masters addressed  slide 11 titled "Performance                                                                    
Indicators."                                                                                                                    
                                                                                                                                
        · Law Enforcement Patrol and Investigations                                                                             
          · 86%    homicide   solve   rate   on   AST   case                                                                    
             investigations, which is a decrease from FY2011                                                                    
                                                                                                                                
        · Rural Law Enforcement                                                                                                 
          · 41% of misdemeanor and felony alcohol crimes                                                                        
             referred   in   FY2012   were    accepted   for                                                                    
             prosecution compared to 36% in FY2011                                                                              
                                                                                                                                
        · Domestic Violence and Sexual Assault                                                                                  
          · 92% of sexual assault/sexual abuse victim                                                                           
             service participants indicated a positive                                                                          
             program impact in their lives due to CDVSA                                                                         
             services                                                                                                           
                                                                                                                                
        · Statewide Public Safety Programs                                                                                      
          · 42% reduction in unintentional fire fatalities                                                                      
             compared to the previous five year average                                                                         
                                                                                                                                
        · Resource Protection                                                                                                   
          · 5.39% of wildlife violations detected as a                                                                          
             percentage of total contacts which is a 10.8%                                                                      
             increase over the previous year.                                                                                   
                                                                                                                                
        · Highway Safety                                                                                                        
          · 50% decrease in the number of DUI fatalities                                                                        
             compared to the previous 3-year average                                                                            
                                                                                                                                
Commissioner Masters  pointed out that AST  had responded to                                                                    
over 112,000 calls for service  the previous year, which was                                                                    
about the  same volume as  2011. 15 homicides  were reported                                                                    
in Alaska  in 2012,  2 of which  were still  currently being                                                                    
worked and remained unsolved.                                                                                                   
                                                                                                                                
2:17:49 PM                                                                                                                    
                                                                                                                                
Commissioner Masters discussed slide 12 titled "FY14                                                                            
Significant Operating Changes."                                                                                                 
                                                                                                                                
     New and Continuing Initiatives                                                                                           
                                                                                                                                
     •New Sex Trafficking Investigation Unit with 3                                                                             
     Investigators, $827.2 GF                                                                                                   
                                                                                                                                
     •Increased Trooper Coverage (15) in Fairbanks, Mat-SU,                                                                     
     and Kenai, $2,833.4 GF                                                                                                     
                                                                                                                                
     •Initiative for Increasing the Number of Village                                                                           
     Public Safety Officers in Rural Areas, $2,679.3                                                                            
     GF                                                                                                                         
                                                                                                                                
     •New Support Trooper Position for Additional                                                                               
     Village Public Safety Officers, $293.3 GF                                                                                  
                                                                                                                                
     •New Trooper Post in Hooper Bay with Two                                                                                   
     Troopers, $823.7 GF                                                                                                        
                                                                                                                                
Commissioner  Masters spoke  to the  first bullet  point and                                                                    
stated that DPS  had been "keeping our head  somewhat in the                                                                    
sand" on the  issue of sex trafficking. He  pointed out that                                                                    
the department had allowed other  agencies, primarily in the                                                                    
Anchorage area, to  take a lead role on  sex trafficking. He                                                                    
observed that the sex trafficking  task force had identified                                                                    
sex trafficking  as an  area of concern  that DPS  needed to                                                                    
focus on.                                                                                                                       
                                                                                                                                
Co-Chair Stoltze  spoke to the  first bullet point  on slide                                                                    
12 and  inquired if it would  be part of a  fiscal note with                                                                    
the  governor's   legislation  or  whether  it   required  a                                                                    
separate increment.  Commissioner Masters responded  that it                                                                    
would not be in  the form of a fiscal note  on a crime bill,                                                                    
but  was a  specific increment  request in  the budget.  Co-                                                                    
Chair Stoltze  queried if there  would be other  requests as                                                                    
part  of a  fiscal note  with the  legislation. Commissioner                                                                    
Masters replied  that it  was too  premature in  the process                                                                    
for him  to comment,  but reiterated  that the  first bullet                                                                    
point was a request by AST for an investigator.                                                                                 
                                                                                                                                
Commissioner  Masters  continued  to discuss  slide  12.  He                                                                    
spoke to  the third  bullet point and  related that  DPS had                                                                    
identified  66  communities  that  had  no  law  enforcement                                                                    
protection whatsoever;  any community that had  a population                                                                    
of less than  50 was not included in that  number. He shared                                                                    
that he  was not suggesting  to put a  VPSO in every  one of                                                                    
the 66 communities, but that  the department would likely be                                                                    
able to do so in the bulk of those communities.                                                                                 
                                                                                                                                
Representative Munoz inquired if a  community had the say of                                                                    
whether  or not  a  VPSO was  stationed there.  Commissioner                                                                    
Masters responded  in the affirmative  and that the  way the                                                                    
department was  structuring requests was that  the community                                                                    
made a request to  the non-profit administrating entity. The                                                                    
non-profit would  then begin working  with the  community on                                                                    
the logistical and programmatic pieces.                                                                                         
                                                                                                                                
Commissioner  Masters continued  to  speak to  slide 12.  He                                                                    
discussed  the  fourth  bullet point  and  stated  that  the                                                                    
trooper  position  would  assist   directly  with  the  VPSO                                                                    
program; the  trooper would work  with the  non-profits, the                                                                    
communities, and VPSOs.                                                                                                         
                                                                                                                                
2:21:58 PM                                                                                                                    
                                                                                                                                
Representative  Guttenberg  requested  a  breakdown  of  the                                                                    
$293,300 increment  in the fourth  bullet point.  Mr. Hoover                                                                    
responded that there was $77,000  in startup equipment costs                                                                    
the  first  year and  that  the  ongoing costs  were  around                                                                    
$215,000.  He  stated  that the  trooper  personal  services                                                                    
portion of  the funding was  around $150,000 and  that there                                                                    
would    be    related    non-personal    services    costs.                                                                    
Representative  Guttenberg  inquired  what the  new  trooper                                                                    
position  would  cost  after  the  first  year.  Mr.  Hoover                                                                    
replied that the ongoing costs would be about $215,000.                                                                         
                                                                                                                                
Commissioner  Masters continued  to  speak to  slide 12.  He                                                                    
discussed the last  bullet point and stated  that the Hooper                                                                    
Bay  post  would  follow  the same  model  as  Selawick  and                                                                    
Emmonak.  There would  be  two  troopers posted  permanently                                                                    
into  Hooper Bay  with a  rotating work  schedule. Currently                                                                    
Hooper  Bay was  covered out  of  the Bethel  post, but  the                                                                    
flight time in a Cessna 207 was  over an hour and a half and                                                                    
over an hour  in the Cessna Caravan. The  two troopers would                                                                    
also service the villages of  was Chevak and Scammon Bay. He                                                                    
shared that  Hooper Bay  was the  largest village  in Alaska                                                                    
and that the village of  Chevak had over 600 inhabitants. He                                                                    
relayed   that   the   aforementioned   villages   were   in                                                                    
significant need of law enforcement  and that the cluster of                                                                    
villages  had  the  region's highest  percentage  of  felony                                                                    
cases that  came into the  Bethel Post for action.  He added                                                                    
that the cluster  of villages had the  highest percentage of                                                                    
inmates in Bethel's jails.                                                                                                      
                                                                                                                                
2:24:25 PM                                                                                                                    
                                                                                                                                
Commissioner  Masters   spoke  to  slide  13   titled  "FY14                                                                    
Significant Operating Changes."                                                                                                 
                                                                                                                                
     Maintain Current Services                                                                                                  
                                                                                                                                
        · Replace Federal Funds with State Funds for Bureau                                                                     
          of Highway Patrol DUI Enforcement, $2,937.0 GF /                                                                      
          ($4,837.4 CIP Receipts)                                                                                               
                                                                                                                                
        · Replace  Federal   Funds  for   Six  Investigative                                                                    
          Positions in Internet Crimes Against Children,                                                                        
          $914.2 GF                                                                                                             
                                                                                                                                
        · Replace  Federal  Funds  for three  Public  Safety                                                                    
          Technicians, $213.0 GF / ($213.0 CIP Receipts)                                                                        
                                                                                                                                
        · Increased Dispatch Center  Contract Costs in Matsu                                                                    
          Valley and Kenai, $400.0 GF                                                                                           
                                                                                                                                
        · Replace Federal  Funds for Meth  Grant Initiative,                                                                    
          $131.6 GF / ($131.6 Fed)                                                                                              
                                                                                                                                
        · Fully  Fund  Pilot  and Operating  Costs  for  New                                                                    
          Interior Helicopter, $296.8 GF                                                                                        
                                                                                                                                
        · Decrease    in    Risk   Management    Allocation,                                                                    
          ($1,026.1) GF                                                                                                         
                                                                                                                                
        · Salary  &  Health  Benefits Increase,  $946.1  All                                                                    
          funds                                                                                                                 
                                                                                                                                
Commissioner Masters  discussed the  first bullet  point and                                                                    
pointed  out  that  the  Bureau   of  Highway  Patrol's  DUI                                                                    
Enforcement  program  was  a   valuable  program  that  cost                                                                    
effective  and  saved  lives; he  opined  that  the  program                                                                    
needed to be continued. He  spoke to the second bullet point                                                                    
and  pointed out  that two  of  the investigative  positions                                                                    
would  be in  the technical  crimes unit,  which dealt  with                                                                    
internet  predation  and  child   pornography;  two  of  the                                                                    
investigative  positions  dealt   with  child  sexual  abuse                                                                    
investigation  and   two  were  for  adult   sexual  assault                                                                    
investigative  units. He  continued  to  discuss the  second                                                                    
bullet  point  and  related   that  the  investigators  were                                                                    
located between Anchorage, Palmer,  and Fairbanks. He stated                                                                    
that  the six  investigative positions  were put  in service                                                                    
through  funding that  was under  the American  Reinvestment                                                                    
and  Recovery Act  (ARRA), but  that DPS's  strategy was  to                                                                    
continue the positions with general  funds. He discussed the                                                                    
third  bullet   point  and  related  that   the  technicians                                                                    
assisted AWT.  He explained  that DPS was  not able  to send                                                                    
two troopers out on patrol in  a skiff and that often it was                                                                    
the technician that was boat operator.                                                                                          
                                                                                                                                
2:26:59 PM                                                                                                                    
                                                                                                                                
Representative Wilson  inquired if some of  the positions on                                                                    
slide 13  were started  with stimulus  funding. Commissioner                                                                    
Masters  responded  in  the affirmative  and  that  the  six                                                                    
investigator  positions   were  directly  funded   by  ARRA.                                                                    
Representative  Wilson requested  a  list  of the  positions                                                                    
that would be  using general fund but were  started by ARRA.                                                                    
Commissioner   Masters   believed    that   only   the   six                                                                    
investigator  positions   were  directly  related   to  ARRA                                                                    
funding,  but  that  there were  more  positions  that  were                                                                    
related  to  federal funding.  He  indicated  that he  would                                                                    
provide the requested information.                                                                                              
                                                                                                                                
Commissioner  Masters  continued  to discuss  slide  13.  He                                                                    
spoke to the fourth bullet  point and stated that currently,                                                                    
the  department had  direct a  contract in  Mat-Su with  the                                                                    
City of Wasilla  for their dispatch center;  costs needed to                                                                    
be negotiated with this contract,  as well as meet increased                                                                    
dispatch  needs. He  discussed  the fifth  bullet point  and                                                                    
stated  that it  funded a  criminal justice  technician that                                                                    
assisted  the   drug  unit  troopers  with   various  things                                                                    
including  dismantling meth  labs.  He  discussed the  sixth                                                                    
bullet  point and  pointed  out that  it  was the  remaining                                                                    
funding for  the personal services  and operating  costs for                                                                    
the pilot and helicopter.                                                                                                       
                                                                                                                                
Representative  Guttenberg   inquired  if  the   Meth  Grant                                                                    
Initiative  was  for   a  technician.  Commissioner  Masters                                                                    
responded in  the affirmative  and that  it was  a technical                                                                    
level job that provided very specific types of assistance.                                                                      
Representative   Guttenberg   commented  that   there   were                                                                    
dangerous chemicals  and risks when investigators  went into                                                                    
meth labs  and inquired if  the federal government  had been                                                                    
funding  a  technician  that  worked  in  that  environment.                                                                    
Commissioner Masters  replied that the funding  for the Meth                                                                    
Grant Initiative was  fairly broad on usage but  that it was                                                                    
for  assistance in  dealing with  meth  labs, portable  meth                                                                    
labs, and "pop bottle" meth  labs, and other efforts dealing                                                                    
with  the  meth  issue;   primarily,  the  technicians  were                                                                    
utilized in a supportive role.                                                                                                  
                                                                                                                                
2:30:35 PM                                                                                                                    
                                                                                                                                
Representative Guttenberg  relayed that  he did not  want to                                                                    
minimize the  risk of meth  labs, but recalled  reports that                                                                    
the  use of  meth and  meth labs  was down.  He inquired  if                                                                    
heroin was  a big  issue and queried  what DPS  was "chasing                                                                    
most."  Commissioner Masters  replied  that  the "in  vogue"                                                                    
drugs were still out there,  but that there was a resurgence                                                                    
of heroin  usage in several  areas of the state.  He relayed                                                                    
that more information would be  forthcoming in the mandatory                                                                    
annual drug report  from AST's drug unit. He  added that DPS                                                                    
was seeing  significant issues with  prescription medication                                                                    
diversions  and that  pain medications  represented majority                                                                    
of abuse.                                                                                                                       
                                                                                                                                
Representative  Guttenberg inquired  if the  committee would                                                                    
get a copy of the  annual drug report from AST. Commissioner                                                                    
Masters replied in the affirmative.                                                                                             
                                                                                                                                
Representative   Holmes   commented    about   a   potential                                                                    
prescription  drug database  and  inquired if  it was  still                                                                    
being pursued  by DPS.  Commissioner Masters  responded that                                                                    
the potential  database had been  handled through  DHSS, but                                                                    
added that DPS had been  in lengthy discussions with DHSS at                                                                    
the  time  regarding  the  issue. He  noted  that  DHSS  had                                                                    
investigators,  particularly  in  the area  of  prescription                                                                    
frauds. He concluded  that he would return  to the committee                                                                    
with information regarding the potential database.                                                                              
                                                                                                                                
Vice-Chair  Neuman pointed  to  the fourth  bullet point  on                                                                    
slide 13 and mentioned the  increases in the dispatch center                                                                    
contract costs; He  queried if there was a way  to deal with                                                                    
the  costs  more "in  house."  He  further inquired  if  the                                                                    
dispatch centers  could be handled  to achieve  cost savings                                                                    
and safety for  AST. He wondered if a  contract dispute with                                                                    
the  City of  Wasilla that  the state  did not  have control                                                                    
over  could  put  troopers  at  risk.  Commissioner  Masters                                                                    
replied  that the  current contract  with  MATCOM was  about                                                                    
$1.5  million and  that the  new budget  would increase  the                                                                    
contract's cost. He  responded that DPS would  not allow the                                                                    
dispatch  centers  to endanger  the  troopers  and that  the                                                                    
department would  take drastic  actions to insure  that this                                                                    
did  not   occur.  He  addressed  the   first  question  and                                                                    
responded that  the department was discussing  internally at                                                                    
what  point  it became  equal  cost  or  a cost  savings  to                                                                    
provide certain services itself  instead of using contracts.                                                                    
He  stated that  the cost  to the  department, the  type and                                                                    
quality  of  the  service,   and  the  interactions  between                                                                    
infrastructure and  programs that were being  discussed were                                                                    
all  considered by  the department.  He  related by  example                                                                    
that the Matanuska Borough was  talking about a regionalized                                                                    
dispatch center;  the department  was looking at  the center                                                                    
to discern  if it was  a viable option, but  law enforcement                                                                    
had very  specific needs that were  sometimes different than                                                                    
the needs for dispatching fire  and EMS services. He related                                                                    
that the  department also  looked at  the boundaries  of the                                                                    
regional dispatch  centers, but  that those  boundaries were                                                                    
not necessarily the  boundaries that the state  used for its                                                                    
trooper   positions.  He   stated  that   there  were   also                                                                    
considerations of fail safes  and redundancy capabilities of                                                                    
the department's  own systems for  state owned  and operated                                                                    
dispatch  centers   such  as  the  Fairbanks   or  Ketchikan                                                                    
centers.                                                                                                                        
                                                                                                                                
Vice-Chair Neuman  pointed out that making  sure that Alaska                                                                    
State Troopers went  home to their families  every night was                                                                    
the highest priority.                                                                                                           
                                                                                                                                
                                                                                                                                
Commissioner  Masters   addressed  slide  14   titled  "FY14                                                                    
Significant Operating Changes."                                                                                                 
                                                                                                                                
     Council on Domestic Violence and Sexual Assault                                                                          
                                                                                                                                
        · Provide Additional Grant Funds to Maintain                                                                            
          Existing Services to Adults and Children, $287.5                                                                      
          GF                                                                                                                    
                                                                                                                                
        · Grants to Non-profits to Provide New Community                                                                        
          Prevention Coordinators, $300.0 GF                                                                                    
                                                                                                                                
        · Grants to Non-profits to Provide Non-residential                                                                      
          Services to Victims in Remote Areas (Emerging                                                                         
          Programs), $250.0 GF                                                                                                  
                                                                                                                                
        · Coaching   Boys   to   Men   Violence   Prevention                                                                    
          Curriculum, $50.0 GF                                                                                                  
                                                                                                                                
                                                                                                                                
Commissioner  Masters   spoke  to  slide  15   titled  "FY14                                                                    
Operating Budget Positions."                                                                                                    
                                                                                                                                
        · 890 Permanent Full Time                                                                                               
                                                                                                                                
        · 18 Permanent Part Time                                                                                                
                                                                                                                                
        · 17 Non perms                                                                                                          
                                                                                                                                
        · 334 Alaska State Troopers (21 new positions)                                                                          
                                                                                                                                
        · 96 Alaska Wildlife Troopers                                                                                           
                                                                                                                                
        · 59 Court Services Officers                                                                                            
                                                                                                                                
        · Positions  in  50   locations,  one  new  location                                                                    
          (Hooper Bay)                                                                                                          
                                                                                                                                
Commissioner Masters  highlighted that AST currently  had 18                                                                    
vacancies and that AWT had  4 vacancies. He related that DPS                                                                    
was at the  end of a hiring process and  that the department                                                                    
would be  receiving job offers  for those who would  go into                                                                    
the spring academy;  DPS anticipated that there  would be 18                                                                    
to  22  job offers.  He  concluded  that  DPS would  be  100                                                                    
percent  filled in  both trooper  divisions  if no  troopers                                                                    
left  and department  got "on  the  outside end"  of 22  job                                                                    
offers.                                                                                                                         
                                                                                                                                
2:38:02 PM                                                                                                                    
                                                                                                                                
Commissioner  Masters  discussed  slide  16  titled  "FY2014                                                                    
Capital Projects."                                                                                                              
                                                                                                                                
        · Alaska  State Troopers  Law Enforcement  Equipment                                                                    
          Replacement: $400.0 GF                                                                                                
                                                                                                                                
        · Alaska    Wildlife   Troopers    Law   Enforcement                                                                    
          Equipment Replacement: $400.0 GF                                                                                      
                                                                                                                                
        · VPSO Equipment: $400.0 GF                                                                                             
                                                                                                                                
        · Alaska   Wildlife  Troopers   Vessel  Repair   and                                                                    
          Maintenance: $1,000.0 GF                                                                                              
                                                                                                                                
        · Alaska  Wildlife  Troopers   Aircraft  Repair  and                                                                    
          Maintenance: $800.0 GF                                                                                                
                                                                                                                                
        · Alaska   Wildlife    Troopers   Marine   Fisheries                                                                    
          Patrols: $1,200.0 Fed                                                                                                 
                                                                                                                                
        · Alaska  Wildlife Troopers  Enforcement Activities:                                                                    
          $200.0 other                                                                                                          
                                                                                                                                
        · APSIN Contractor Support: $975.0 GF                                                                                   
                                                                                                                                
       · Statewide Deferred Maintenance: $1,307.0 GF                                                                            
                                                                                                                                
        · Bethel Public Safety Hanger Repair & Renovation:                                                                      
          $300.0 GF                                                                                                             
                                                                                                                                
Commissioner   Masters  stated   that   DPS  was   currently                                                                    
operating 43 aircraft and 107  vessels; 88 of those aircraft                                                                    
were over  20 feet.  He related that  P/V Stimson  was about                                                                    
160 feet  long and that  DPS also  had two large  vessels in                                                                    
Kodiak that were about 130 feet  and 80 feet long. He stated                                                                    
that  the requested  funding  represented  a nominal  amount                                                                    
considering the size of DPS's  fleets, but acknowledged that                                                                    
it was not  an insignificant amount over all.  He added that                                                                    
on July  1st, DPS  expected to go  from its  mainframe based                                                                    
Alaska Public Safety Information  Network (APSIN), which was                                                                    
referred to as  "Legacy APSIN," to a new  server based APSIN                                                                    
system on new platforms; the Legacy  APSIN would be run as a                                                                    
failsafe for at least one  year while DPS was simultaneously                                                                    
bringing  the new  system online  to insure  interruption of                                                                    
service.                                                                                                                        
                                                                                                                                
Mr. Hoover pointed to slide  17 titled "Department of Public                                                                    
Safety Continued  Budget Growth Compared  to 10 -  Year Plan                                                                    
(Non-Formula Only)  (GF Only)." He relayed  that the slide's                                                                    
chart was  prepared by the Legislative  Finance Division and                                                                    
that  it  projected  forward the  general  funds  for  DPS's                                                                    
operating budget.  He stated that although  the chart showed                                                                    
a projected growth of 7.9 percent,  it was based on the past                                                                    
and  was not  sustainable. In  the  past, there  had been  a                                                                    
number of  general fund  initiatives and  backfilled federal                                                                    
and other funds; as a result,  the chart showed a growth. He                                                                    
shared  that the  department's long-range  plan projected  a                                                                    
3.1  percent  growth,  which  it thought  was  more  a  more                                                                    
reasonable  view  for general  funds  for  the upcoming  ten                                                                    
years.  He pointed  out  that the  long-range  plan did  not                                                                    
account  for  salary and  benefit  increases,  but that  the                                                                    
those types of increases were  accounted for by OMB and were                                                                    
expected  to be  about $1  million in  FY14. The  long-range                                                                    
plan did  not account for  the fuel supplemental.  OMB would                                                                    
also   account  for   the  fuel   supplemental,  which   was                                                                    
approximately  an additional  $1.1  million  in the  current                                                                    
year.  He concluded  that there  were things  that were  not                                                                    
included in DPS's  long range plan, which  accounted for the                                                                    
"gap" going forward.                                                                                                            
                                                                                                                                
Commissioner  Masters interjected  that the  long-range plan                                                                    
did take into  account what DPS saw as  added positions over                                                                    
the next  several years  and the  anticipated growth  in the                                                                    
VPSO program. He reiterated that  the green line on slide 17                                                                    
was not what  DPS expected to see regarding  growth and that                                                                    
the department  would stop adding  positions at  some point.                                                                    
He added that there was  only $10 million of federal funding                                                                    
left  in  DPS's budget  and  that  parts  of that  would  be                                                                    
eliminated;   however,  there   would  not   be  an   entire                                                                    
elimination  of federal  funds because  there would  formula                                                                    
driven federal  receipts still coming in.  He concluded that                                                                    
the reality  of DPS's  growth would probably  fall somewhere                                                                    
in between the two lines on the slide.                                                                                          
                                                                                                                                
Mr. Hoover spoke  to slide 18: "Department  of Public Safety                                                                    
Continued Budget  Growth Compared  to 10  - Year  Plan (Non-                                                                    
Formula  Only)  (All  Funds)."  He  stated  that  the  slide                                                                    
represented  a chart  prepared  by  the Legislative  Finance                                                                    
Division that showed total funds.  He related that the slide                                                                    
showed  a similar  picture to  the previous  slide with  6.9                                                                    
percent in  growth; as with  the previous slide,  the growth                                                                    
was based  on the  past. DPS had  built into  the long-range                                                                    
plan  realistic   expectations  of  what  would   happen  to                                                                    
general, federal, and other funds.                                                                                              
                                                                                                                                
Representative  Gara  noted  that the  governor  planned  on                                                                    
adding 15  VPSOs per year  and that problems  with retention                                                                    
required that number  to be even higher. He  inquired if the                                                                    
"even smaller" increased budget  curve incorporated the VPSO                                                                    
positions.  Commissioner Masters  responded that  the budget                                                                    
curve  that was  being  reflected  contained any  additional                                                                    
costs that DPS had anticipated for the VPSO program.                                                                            
                                                                                                                                
2:44:09 PM                                                                                                                    
                                                                                                                                
Co-Chair Austerman  stated that because  pertinent questions                                                                    
arose  during  a  presentation,  he did  not  want  all  the                                                                    
questions saved  until the final end;  however, he requested                                                                    
that the timeframe be kept on track.                                                                                            
                                                                                                                                
^FY14 Governor's Budget Overview: Department of Corrections                                                                     
                                                                                                                                
JOSEPH  SCHMIDT,  COMMISSIONER,  DEPARTMENT  OF  CORRECTIONS                                                                    
(DOC),  began a  PowerPoint presentation  (copy on  file) He                                                                    
introduced his  staff and discussed staffing  changes within                                                                    
DOC. He stated  grading and auditing was  something that DOC                                                                    
was focused on  and that the department had  conducted a lot                                                                    
of systemic changes.                                                                                                            
                                                                                                                                
Commissioner Schmidt discussed slide 2 titled "Mission."                                                                        
                                                                                                                                
     The  Alaska  Department  of  Corrections  enhances  the                                                                    
     safety   of   our   communities.  We   provide   secure                                                                    
     confinement,  reformative programs,  and  a process  of                                                                    
     supervised community reintegration.                                                                                        
                                                                                                                                
Commissioner  Schmidt stated  that DOC  had put  its mission                                                                    
statement  into  effect  in 2008  and  that  the  department                                                                    
wanted to  be more than  just "the incarceration  piece." He                                                                    
acknowledged  the  need  for  secure  confinement  for  some                                                                    
offenders,  but   pointed  out   that  95  percent   of  the                                                                    
department's inmates  were released in their  lifetime; as a                                                                    
result, reformative  programs and supervised  reentry needed                                                                    
to be at the forefront of the department's decisions.                                                                           
                                                                                                                                
2:48:55 PM                                                                                                                    
                                                                                                                                
Commissioner  Schmidt spoke  to  slide 3  titled  "DOC at  a                                                                    
Glance."                                                                                                                        
                                                                                                                                
        · Alaska is one of six states in the nation that                                                                        
          operates a unified correctional system                                                                                
                                                                                                                                
        · In 2012, DOC booked 40,347 offenders into its                                                                         
          facilities                                                                                                            
                                                                                                                                
        · As of Dec. 31, 2012, 5,958 offenders are in                                                                           
          prison, a CRC or on EM                                                                                                
                                                                                                                                
        · As of Dec. 31, 2012, 6,143 offenders are on                                                                           
          probation or parole                                                                                                   
                                                                                                                                
        · 13 facilities statewide                                                                                               
                                                                                                                                
        · 13 field probation offices                                                                                            
                                                                                                                                
        · 15 Regional and Community Jail contracts                                                                              
                                                                                                                                
        · 8 Contract Community Residential Centers                                                                              
                                                                                                                                
        · Electronic Monitoring Programs operated                                                                               
                                                                                                                                
Commissioner Schmidt  discussed the  first bullet  point and                                                                    
stated  that a  unified correctional  system meant  that DOC                                                                    
handled  the  misdemeanants,  the  un-sentenced  felons,  or                                                                    
anyone with  less than  a year  to serve;  as a  result, the                                                                    
department had  a high volume  of business. He  related that                                                                    
because  Alaska  had  a  unified  correctional  system,  the                                                                    
comparison had to  be "apples to apples"  when examining how                                                                    
another  state did  things. He  explained  that a  sentenced                                                                    
felon  was a  different kind  of prisoner  to manage  than a                                                                    
pre-trial felon or a very  short-term misdemeanant. He spoke                                                                    
to  the  second bullet  point  and  stated that  the  40,347                                                                    
bookings represented  about 23,600 unique  individuals; most                                                                    
of the  inmates came back  twice. Out of the  23,600 people,                                                                    
1,850  were  "non-crims" or  those  that  did not  commit  a                                                                    
criminal offense, but sat in jail overnight.                                                                                    
                                                                                                                                
Commissioner   Schmidt  addressed   slide  4   titled  "Core                                                                    
Services."                                                                                                                      
                                                                                                                                
     Provide Secure Confinement                                                                                               
                                                                                                                                
        · 13 In-state Correctional Facilities with maximum                                                                      
          bed capacity of 5,449 beds                                                                                            
          · Maximum bed capacity reflects the Goose Creek                                                                       
             Correctional Center located in MacKenzie Point                                                                     
             at full operational capacity with 1,536 maximum                                                                    
             bed capacity.                                                                                                      
                                                                                                                                
        · 1 out-of-state contract facility located in                                                                           
          Hudson, Colorado housing 415 offenders                                                                                
          · Remaining offenders to be transitioned back to                                                                      
             Alaska during 1st quarter of FY2014 with the                                                                       
             completed   opening   of   the    Goose   Creek                                                                    
             Correctional Center.                                                                                               
                                                                                                                                
        · 13 Regional Adult Probation Offices                                                                                   
                                                                                                                                
Commissioner Schmidt  discussed the  third bullet  point and                                                                    
stated that  it was  based on the  FY 14  budget; currently,                                                                    
Alaska  had 1029  offenders in  the  Colorado facility.  DOC                                                                    
planned  on   having  415  offenders  in   the  out-of-state                                                                    
facility by  July 1st, as  well as having all  the offenders                                                                    
in state by the end of the first quarter of FY14.                                                                               
                                                                                                                                
Co-Chair  Stoltze   inquired  if  the  number   of  contract                                                                    
prisoners  would  go  down  to  zero.  Commissioner  Schmidt                                                                    
replied  in the  affirmative. Co-Chair  Stoltze inquired  if                                                                    
there were  other circumstances under  which DOC  would have                                                                    
contract  prisoners.  Commissioner  Schmidt replied  in  the                                                                    
affirmative and relayed  that there were 17  or 18 prisoners                                                                    
that were contracted out for medical or safety concerns.                                                                        
                                                                                                                                
Commissioner  Schmidt  pointed  to   slide  5  titled  "Core                                                                    
Services."                                                                                                                      
                                                                                                                                
     Provide Supervised Release                                                                                               
                                                                                                                                
        · 15 contracts with Regional and Community Jails -                                                                      
          157 beds                                                                                                              
                                                                                                                                
       · 8 Community Residential Centers - 839 beds                                                                             
                                                                                                                                
        ·  Electronic Monitoring operated in 7 communities                                                                      
          with capacity to support up to 385 offenders                                                                          
                                                                                                                                
Commissioner Schmidt  spoke to  the second bullet  point and                                                                    
related  that  the  department had  more  than  doubled  its                                                                    
capacity  in the  Community  Residential  Centers (CRC).  He                                                                    
pointed  out that  when a  prisoner was  reentering society,                                                                    
employment,  housing, and  sobriety  support  were the  most                                                                    
important factors; although halfway  houses did not meet any                                                                    
of these  three factors, they allowed  for employment, which                                                                    
in turn allowed for housing  and sobriety support. He stated                                                                    
that  more  than  90  percent of  people  that  started  the                                                                    
electronic monitoring program  finished without an incident;                                                                    
DOC had  not "pushed" the program  too hard in an  effort to                                                                    
keep the success and safety of the program at a high level.                                                                     
                                                                                                                                
2:53:50 PM                                                                                                                    
                                                                                                                                
RON TAYLOR, DEPUTY  COMMISSIONER, DEPARTMENT OF CORRECTIONS,                                                                    
discussed slide 6 titled "Core Services."                                                                                       
                                                                                                                                
     Provide Reformative Programs                                                                                             
                                                                                                                                
        · Substance Abuse Treatment Programs                                                                                    
                                                                                                                                
        · Sex Offender Management Programs                                                                                      
                                                                                                                                
        · Vocational Education Programs                                                                                         
                                                                                                                                
        · Educational Programs                                                                                                  
                                                                                                                                
        · Domestic Violence Programs                                                                                            
                                                                                                                                
        · Faith-based Re-entry Programs                                                                                         
                                                                                                                                
        · Mental Health Services                                                                                                
                                                                                                                                
Mr. Taylor spoke  to the first bullet point  and stated that                                                                    
DOC  had   put  considerable   energy  into   expanding  the                                                                    
rehabilitative programs. He related  that the department was                                                                    
beginning  to  see  the  benefits  of  the  substance  abuse                                                                    
treatment  program expansion.  For  example, the  department                                                                    
would  be going  from a  capacity of  800 in  its outpatient                                                                    
program,  or LSAT,  to  just over  1300 at  the  end of  the                                                                    
current  fiscal   year.  He   relayed  that   the  intensive                                                                    
residential  program,  or  RSAT,  was  at  about  140  beds;                                                                    
however, by  the time  DOC switched from  the Hudson  to the                                                                    
Goose  Creek Facility,  the RSAT  program would  increase to                                                                    
about a  220 bed  capacity. He  addressed the  second bullet                                                                    
point and stated that there  were 250 sex-offender community                                                                    
slots. There  were 54 sex  offender beds in the  Lemon Creek                                                                    
facility and the upcoming  Palmer Correctional Center; there                                                                    
were  also an  additional 19  beds  in the  CRC facility  in                                                                    
Bethel  Tundra Center.  He continued  to discuss  the second                                                                    
bullet point  and stated  that DOC was  able to  conduct 729                                                                    
polygraph  exams on  435 probationers  and  parolees in  its                                                                    
system. He spoke  to the third and fourth  bullet points and                                                                    
stated that  those programs had  been expanding.  He related                                                                    
that  there would  be  a  list of  services  offered by  DOC                                                                    
facilities that  would probably be released  in subcommittee                                                                    
meetings. The department's  vocational programs included the                                                                    
small  engine   repair,  food  handler,  animal   care,  and                                                                    
apprenticeship programs in  carpentry, building maintenance,                                                                    
plumbing,   and  electrical.   The  department's   education                                                                    
programs included  adult basic  education and  GED programs.                                                                    
The  department's domestic  violence  programs included  the                                                                    
CAP  program,  which was  a  16  week  program, as  well  as                                                                    
parenting classes. He discussed  that the department's faith                                                                    
based reentry programs  included the Transformational Living                                                                    
Communities Program, which  was a 12 to 18  month program in                                                                    
two of DOC's  institutions; there were also  some mentor and                                                                    
volunteer  based  programs.  He discussed  the  last  bullet                                                                    
point  and   stated  that  it  included   the  institutional                                                                    
discharge   program  and   the  Asses   Plan  Identity   and                                                                    
Coordinate (APIC) Program.                                                                                                      
                                                                                                                                
Representative  Guttenberg noted  that  the faith-based  re-                                                                    
entry  programs, educational,  and vocational  programs were                                                                    
not  mutually  exclusive  to  each   other.  He  noted  that                                                                    
although  faith-based   programs  were  important   to  many                                                                    
people, it was  not a path to a job  and inquired if someone                                                                    
was able to take multiple  programs. Mr. Taylor responded in                                                                    
the affirmative.                                                                                                                
                                                                                                                                
                                                                                                                                
2:57:07 PM                                                                                                                    
                                                                                                                                
Commissioner  Schmidt  addressed  slide  7  titled  "Goals."                                                                    
Protect the public                                                                                                              
                                                                                                                                
        · Reduce recidivism                                                                                                     
                                                                                                                                
        · Delay the need for construction of a new prison                                                                       
          for sentenced offenders                                                                                               
                                                                                                                                
        · Ensure that incarcerated offenders spend their                                                                        
          time in custody productively                                                                                          
                                                                                                                                
        · Work collaboratively with outside stakeholders to                                                                     
          achieve these goals                                                                                                   
                                                                                                                                
Commissioner Schmidt  discussed the second bullet  point and                                                                    
related that reducing the recidivism  rate would be good for                                                                    
the economy and  the victims. He spoke to  the fourth bullet                                                                    
point and  offered that re-entry into  the community started                                                                    
when an  individual walked  into a prison  and that  if they                                                                    
had a release  date, an inmate should be  preparing for life                                                                    
on the outside.                                                                                                                 
                                                                                                                                
Mr.   Taylor   discussed   slide   8   titled   "Performance                                                                    
Indicators."                                                                                                                    
                                                                                                                                
     Secure Confinement:                                                                                                        
                                                                                                                                
     Maintain zero prison escapes                                                                                             
                                                                                                                                
        · An escape from the Mat-Su Correctional Center                                                                         
          occurred in FY2011; however, the conviction                                                                           
          occurred in FY2012. This escape is included with                                                                      
          this reporting cycle.                                                                                                 
                                                                                                                                
     Decrease the number of special incident reports                                                                          
                                                                                                                                
        · The number of special incident reports increased                                                                      
          from 66 during calendar year 2010 to 106 during                                                                       
          calendar year 2011.                                                                                                   
                                                                                                                                
             -The   increased    reporting   is    primarily                                                                    
             associated with expanding the  definition of an                                                                    
             inmate-on-inmate  special   incident   to   now                                                                    
             include lower level  assaults such  as pushing,                                                                    
             shoving, or other  incidents that may  not have                                                                    
             required  medical  attention,  but   created  a                                                                    
             situation that  could lead  to  a more  serious                                                                    
             assault.                                                                                                           
                                                                                                                                
Mr. Taylor pointed to slide 9 titled "Performance                                                                               
Indicators."                                                                                                                    
                                                                                                                                
     Supervised Release:                                                                                                      
                                                                                                                                
     Increase the percent of probationers and parolees who                                                                    
     satisfy court ordered conditions of release                                                                              
                                                                                                                                
        · During FY2012, 2,007 offenders were discharged                                                                        
          from  Probation or  Parole.  Of those  discharged,                                                                    
          1,052  (52.41%) met  all requirements  established                                                                    
          by  the   courts  to   qualify  as   a  successful                                                                    
          discharge. This is an  increase from FY2011, where                                                                    
          1,820  offenders  were  discharged, of  which  884                                                                    
          (48.57%)   offenders  met   all  requirements   as                                                                    
          established by the courts.                                                                                            
                                                                                                                                
     Reduce   criminal   recidivism.   For   this   purpose,                                                                  
     recidivism  is defined  as any  person  convicted of  a                                                                  
     felony offense  who is  incarcerated as  a result  of a                                                                  
     new  sentence, parole  or  probation revocation  within                                                                  
     three years                                                                                                              
                                                                                                                                
        · Currently, early reports show a 14% reduction in                                                                      
          recidivism  for offenders  who complete  substance                                                                    
          abuse programs.                                                                                                       
                                                                                                                                
Mr.  Taylor  stated that  the  department  was tracking  the                                                                    
number  of   people  that  completed  its   substance  abuse                                                                    
programs  and  that there  was  a  14 percent  reduction  in                                                                    
recidivism  from  the control  group.  He  related that  the                                                                    
reduction was  promising and that the  national average over                                                                    
three years was 9 percent to 12 percent.                                                                                        
                                                                                                                                
3:01:14 PM                                                                                                                    
                                                                                                                                
Mr.   Taylor   discussed   slide  10   titled   "Performance                                                                    
Indicators."                                                                                                                    
                                                                                                                                
     Reformative Programs:                                                                                                    
                                                                                                                                
     Increase the number of individuals who complete an                                                                       
     institutional or community based substance abuse                                                                         
     treatment program                                                                                                        
                                                                                                                                
        · The    number   of    offenders   completing    an                                                                    
          institutional or community based substance abuse                                                                      
          treatment program increased from 424 during                                                                           
          FY2010, 719 during FY2011 to 1,137 during FY2012.                                                                     
                                                                                                                                
     Increase the number of sex offender probationers who                                                                     
     complete a sex offender management program and who                                                                       
     receive polygraph testing while on probation                                                                             
                                                                                                                                
        · The number of sex offenders that received a                                                                           
          polygraph while on probation decreased from 454                                                                       
          during FY2011 to 421 during FY2012.                                                                                   
                                                                                                                                
Mr. Taylor discussed  the last bullet point  and stated that                                                                    
there were  several reasons for  the decrease in  the number                                                                    
of  poly graphs  that the  department was  able to  conduct;                                                                    
over the  past decade, the  average sentence length  for sex                                                                    
offenders had  almost doubled.  There was  also a  1 percent                                                                    
increase of  DOC's sex-offender  population. He  pointed out                                                                    
that there  was also fewer  sex offenders being  released to                                                                    
supervision;  in FY  2008, 137  sex offenders  were released                                                                    
into  supervision, but  that  number dropped  to  55 in  the                                                                    
prior fiscal year.                                                                                                              
                                                                                                                                
Representative Holmes discussed  the substance abuse program                                                                    
and  inquired how  the increased  number of  participants in                                                                    
the  substance  abuse  programs affected  the  program.  She                                                                    
further inquired  if there  was more  demand than  there was                                                                    
room in the  program and asked how many wanted  to enter the                                                                    
program versus how  many were able to.  Mr. Taylor responded                                                                    
that  the information  would be  available in  subcommittee.                                                                    
Commissioner  Schmidt interjected  that that  the department                                                                    
looked  very carefully  at who  was not  in the  program. He                                                                    
explained  that one-third  of prisoners  would re-offend  no                                                                    
matter what, another  third had decided that  they would not                                                                    
re-offend, and that  it was the other third  that DOC looked                                                                    
at.  He   pointed  out  that  although   there  were  40,000                                                                    
bookings,  20,000 would  be taken  out  because the  booking                                                                    
only  represented 20,000  people; furthermore,  20,000 would                                                                    
be divided into thirds and  the department would discard the                                                                    
numbers that  were not  in jail  for more  than 90  days. He                                                                    
concluded  that  the "number"  was  in  the neighborhood  of                                                                    
3,000  inmates  per  year, but  that  the  department  would                                                                    
"dial"  the  number in  because  it  would  be part  of  the                                                                    
department's grading.                                                                                                           
                                                                                                                                
Mr.   Taylor   addressed   slide  11   titled   "Performance                                                                    
Indicators."                                                                                                                    
                                                                                                                                
     Reformative Programs:                                                                                                      
                                                                                                                                
     Increase the number of offenders who receive a General                                                                   
     Education Development certificate while incarcerated                                                                     
                                                                                                                                
        · The number of offenders receiving a General                                                                           
          Education Development (GED) Certificate while                                                                         
          incarcerated went from 254 during FY2011 to 251                                                                       
          in FY2012.                                                                                                            
                                                                                                                                
     Increase the number of inmates who successfully                                                                          
     complete an institutional faith-based re-habilitative                                                                    
     program                                                                                                                  
                                                                                                                                
        · The    number   of    offenders   completing    an                                                                    
          institutional faith-based rehabilitative program                                                                      
          increased from 36 in FY2010, to 44 in FY2011, and                                                                     
          to 46 in FY2012                                                                                                       
                                                                                                                                
LESLIE   HOUSTON,   DEPUTY   COMMISSIONER,   DEPARTMENT   OF                                                                    
CORRECTIONS,  spoke  to  slide  12  titled  "Challenges  and                                                                    
Issues."                                                                                                                        
                                                                                                                                
        · Meet 24/7 operational needs while striving to                                                                         
          remain within fiscal parameters                                                                                       
                                                                                                                                
        · Availability of community-based resources for                                                                         
          releasing offenders                                                                                                   
                                                                                                                                
        · Conversion to electronic records system for all                                                                       
          offender files                                                                                                        
                                                                                                                                
Ms.  Houston discussed  the first  bullet point  and related                                                                    
that there were a lot  of unknowns regarding the operational                                                                    
costs. She  pointed to  the second  bullet point  and stated                                                                    
that  the lack  of community-based  resources for  releasing                                                                    
offenders was  a statewide problem.  She addressed  the last                                                                    
bullet point and  pointed out that the department  had a lot                                                                    
of  paper files;  the department  was imaging  the files  in                                                                    
order to reduce its footprint for storage and other space.                                                                      
                                                                                                                                
3:05:55 PM                                                                                                                    
                                                                                                                                
Ms.  Houston  discussed  slide  13  titled  "Challenges  and                                                                    
Issues."                                                                                                                        
                                                                                                                                
   · Over the past decade, medical care costs in Anchorage                                                                      
     have increased by 56.2%, compared to 29.8% nationwide                                                                      
     (Alaska Economic Trends, July 2012)                                                                                        
                                                                                                                                
   · Increases in chronic health issues and an aging inmate                                                                     
     population has led to higher acuity and increased need                                                                     
     for higher medical care                                                                                                    
                                                                                                                                
Commissioner Schmidt pointed to  slide 14 titled "Population                                                                    
Information"  and  related  that  the  next  several  slides                                                                    
offered a picture of the inmate population.                                                                                     
                                                                                                                                
Commissioner    Schmidt    addressed   slide    15    titled                                                                    
"Institutional  Inmate Population  2003-2020." The  red line                                                                    
represented  how many  beds  DOC had,  while  the blue  line                                                                    
reflected  the  number of  prisoners.  He  pointed out  that                                                                    
because the department  had prisoners out of  the state, the                                                                    
graph  displayed less  beds than  prisoners. He  stated that                                                                    
the  two lines  on the  graph would  cross when  Goose Creek                                                                    
opened and  there would  be more beds  than prisoners  for a                                                                    
short period of time. He shared  that in 2015, the two lines                                                                    
would cross  again and  that at  this point,  the department                                                                    
would  be  discussing another  prison.  He  relayed that  he                                                                    
would like  to delay building  a new  prison for as  long as                                                                    
possible  and that  if the  recidivism curve  could be  turn                                                                    
"turned  down just  a little  bit," it  would delay  the two                                                                    
lines crossing for  several more years. He  pointed out that                                                                    
the reduction  in the recidivism of  those that participated                                                                    
in the department's programs was a good start.                                                                                  
                                                                                                                                
3:08:09 PM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze  noted that the  Judiciary had stated  in a                                                                    
previous meeting  that it did  not get to control  its "flow                                                                    
of responsibilities."  He acknowledged that DOC  had to deal                                                                    
with issues like mandated ambient  cell temperatures and the                                                                    
freshness  of  fruits and  vegetables.  He  inquired if  DOC                                                                    
could  identify what  costs were  court mandated  issues and                                                                    
opined that  someone who  was trying  to run  a prison  in a                                                                    
rational manner  might view  some of  the mandates  as being                                                                    
absurd. He noted  that DOC was not a very  popular agency to                                                                    
fund  because  no  one  saw   or  wanted  to  see  what  the                                                                    
department  did. He  relayed  that the  state  did not  play                                                                    
"catch   and  release"   with  career   sex  offenders   and                                                                    
pedophiles and  made several comments regarding  his opinion                                                                    
of  the  priorities  of prison  conditions.  He  pointed  to                                                                    
issues  with correction-officer  safety and  asked what  the                                                                    
contributing   factors   were   regarding   the   discussion                                                                    
surrounding  officer safety.  He expressed  concern for  the                                                                    
correction  officers' safety  and  related  that the  system                                                                    
depended on competent management.                                                                                               
                                                                                                                                
Commissioner  Schmidt responded  to the  first question  and                                                                    
stated  that although  the department  would not  "call them                                                                    
ridiculous  or anything  like  that," there  was  a list  of                                                                    
court mandated requirements that it  had to comply with. Co-                                                                    
Chair  Stoltze interjected  that  the pejorative  statements                                                                    
would be  "on us because we  have a little more  license for                                                                    
that." Commissioner  Schmidt replied to the  second question                                                                    
and relayed  that he  wished there was  a staffing  ratio or                                                                    
number that would guarantee no  incidents; however, this was                                                                    
not possible.  He stated  that Co-Chair  Stoltze was  on the                                                                    
mark  with his  question.  He related  that  if an  incident                                                                    
occurred,  the   department  examined  if  the   inmate  was                                                                    
classified correctly,  if they  had been disciplined  in the                                                                    
past, if the  discipline had worked, or if  they should have                                                                    
been "out."  He recalled that  there were times that  he had                                                                    
wished an individual had been  locked up because they should                                                                    
have  been and  that  a situation  like  that represented  a                                                                    
classification issue. The department  would continue to look                                                                    
at   the  contributing   factors  to   officer  safety.   He                                                                    
reiterated  that in  2010, the  department had  expanded its                                                                    
definition of what  a special incident would  consist of and                                                                    
that the  list now  included chest bumping  and threatening.                                                                    
He offered  that a  baseline had  been established  and that                                                                    
the  next year,  the  department would  be  able to  examine                                                                    
results  and hopefully  determine the  causes. He  concluded                                                                    
that  DOC could  not predict  inmate behavior,  but that  it                                                                    
should   examine   contributing   factors   when   incidents                                                                    
occurred. He  added that  looking at  where and  when things                                                                    
happen were important  and that maybe more  staff was needed                                                                    
at certain places at certain times of the day.                                                                                  
                                                                                                                                
3:12:56 PM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze  related that  he had  a lot  of experience                                                                    
dealing  with   corrections  officers  through   his  public                                                                    
service.  He  recalled  having very  sobering  conversations                                                                    
with corrections  officers in his district  regarding safety                                                                    
concerns. He pointed  out that he had looked  at the minutes                                                                    
from  the State  Affairs  Committee in  2003  and 2004,  and                                                                    
offered  that  his   justification  for  building  expensive                                                                    
corrections facilities  was for  officer safety and  not for                                                                    
prisoner comfort. He  added that prisoner safety  was also a                                                                    
concern, but that the system was currently broken.                                                                              
                                                                                                                                
Representative Edgmon  remarked about a presentation  by the                                                                    
University of Alaska in which  there was a model that showed                                                                    
that  more resources  up front  would decrease  the deferred                                                                    
maintenance  problem. He  inquired  if DOC  had  ever run  a                                                                    
model  that  showed that  if  it  could get  more  resources                                                                    
towards substance abuse, it could  bend or flatten the curve                                                                    
sooner. Commissioner Schmidt responded  that he believed the                                                                    
answer was  yes and added  that although the  department did                                                                    
not  have  a   model  yet,  the  14   percent  reduction  in                                                                    
recidivism  in the  substance abuse  program  was the  first                                                                    
time that the department had  counted the people who did not                                                                    
come back  to jail.  He concluded  that once  the department                                                                    
new the value  of the programs, it knew what  to ask for, as                                                                    
well as what  the program would produce;  the department was                                                                    
at the beginning stages of building a model.                                                                                    
                                                                                                                                
Vice-Chair Neuman  stated that getting  corrections officers                                                                    
home safely  had to  be number one  priority. He  pointed to                                                                    
slide  8  and  noted  that   the  number  of  incidents  had                                                                    
increased from 66  to 106 during the  last reporting period.                                                                    
He  noted that  DOC had  eliminated the  Prisoner Employment                                                                    
Program (PEP), which was vocational  program meant to reduce                                                                    
recidivism, but offered that PEP  had helped keep the static                                                                    
level  down  in  correctional  facilities.  He  opined  that                                                                    
prisoners  had  wanted to  be  able  to participate  in  the                                                                    
program. He  pointed out that an  idle mind was a  bad thing                                                                    
and that it created  tension with the correctional officers.                                                                    
He inquired  if there  was a way  that the  department could                                                                    
provide  more   vocational  training  similar  to   the  PEP                                                                    
program.  He concluded  that not  all the  inmates were  bad                                                                    
people. Commissioner Schmidt responded  that the PEP program                                                                    
was set  in statute to  be self-sustaining and  related that                                                                    
the  components   in  Seward   and  Eagle  River   were  not                                                                    
sustaining  themselves;  however,  the laundry  facility  in                                                                    
Juneau  had been  sustaining itself  and  that facility  was                                                                    
reactivated.  He continued  that there  was a  lot of  space                                                                    
built  in Goose  Creek  for vocational  training and  agreed                                                                    
that idle hands  were a bad thing in a  prison. He noted PEP                                                                    
was  not that  systemic  and that  the  number of  prisoners                                                                    
working  in the  industry was  a small  group. He  concluded                                                                    
that the  department was  reluctant to  close PEP,  but that                                                                    
the program  was unable to  sustain itself. He  related that                                                                    
about  $600,000 had  been used  from  "one to  bail out  the                                                                    
others."                                                                                                                        
                                                                                                                                
3:19:54 PM                                                                                                                    
                                                                                                                                
Representative   Holmes  queried   if  the   department  was                                                                    
planning to address  what other states are  doing to contain                                                                    
costs and reduce  recidivism. Commissioner Schmidt responded                                                                    
in  the  affirmative  and  stated  that  public  safety  and                                                                    
recidivism were the  department's focus. Lowering recidivism                                                                    
would reduce  costs, victims, and court  and police actions.                                                                    
He stated  that prevention  was better than  recidivism, but                                                                    
that  when  someone   came  to  prison  the   focus  was  on                                                                    
recidivism.                                                                                                                     
                                                                                                                                
Commissioner Schmidt  discussed slide 16 titled  "Percent of                                                                    
Offenders by length of Stay  from Admission." He stated that                                                                    
the  graphs showed  that from  2002 to  2012, the  number of                                                                    
prisoners serving six  months or less stayed  about the same                                                                    
and  was  about  half.  He related  that  yellow  piece  was                                                                    
significant  and  represented  those serving  37  months  or                                                                    
more; in 2002, this group  represented just under 7 percent,                                                                    
but  had since  risen to  18.5  percent. He  shared that  it                                                                    
appeared as  though the prisoners  in the yellow  piece came                                                                    
from the 7 to 12 month  category rather than the 6 months or                                                                    
less category.                                                                                                                  
                                                                                                                                
Commissioner  Schmidt discussed  slide  17 titled  "Standing                                                                    
Population  &  Crime Type."  He  related  that in  2002,  42                                                                    
percent of  the DOC's prison population  was non-violent and                                                                    
that by 2012, 56 percent were non-violent.                                                                                      
                                                                                                                                
Co-Chair Austerman inquired how  Alaska's percentage of non-                                                                    
violent versus  violent prisoners  compared to  the national                                                                    
average. Commissioner  Schmidt responded  that he  would get                                                                    
back to committee with the requested information.                                                                               
                                                                                                                                
Commissioner Schmidt  addressed slide 18 titled  "Percent of                                                                    
Offenders in Institutions by Sex."  He relayed that in 2003,                                                                    
less  than  8 percent  of  the  department's prisoners  were                                                                    
female, but that the figure  had increased to 12 percent. He                                                                    
related that  the female prisoner population  was growing at                                                                    
6  percent  and that  the  men  were  only growing  at  2.25                                                                    
percent.  He stated  that females  were  still a  relatively                                                                    
small group,  but that  as time went  on, more  females were                                                                    
coming into prison.                                                                                                             
                                                                                                                                
Ms.  Houston  spoke  to  slide   19  titled  "FY2014  Budget                                                                    
Challenges." She  stated that DOC  was not starting  any new                                                                    
initiatives, but  was looking to  "prove up."  She explained                                                                    
that the  department would  be spending  the next  few years                                                                    
grading and auditing in an attempt to create efficiencies.                                                                      
                                                                                                                                
3:23:29 PM                                                                                                                    
                                                                                                                                
Ms.  Houston  discussed  slide  20  titled  "FY14  Operating                                                                    
Changes."                                                                                                                       
                                                                                                                                
        · Salary and Health Insurance Increases $ 189.6                                                                         
                                                                                                                                
        · Maintain Current Level of Services $ 3,713.6                                                                          
          -Regional and Community Jails - GF $2,000.0                                                                           
          -CRC annual CPI rate increase - GF $843.0                                                                             
          -Core Services Increment - GF $1,145.6                                                                                
          -Education - I/A $25.0                                                                                                
          -Eliminate GCCC - SDPR ($300.0)                                                                                       
                                                                                                                                
       · MH Trust: One Time Item Reversal ($ 511.5)                                                                             
                                                                                                                                
       · Mental Health Trust Recommendations $ 506.2                                                                            
                                                                                                                                
Ms. Houston discussed the $2  million increment for regional                                                                    
and community jails  and related that it  would complete the                                                                    
phase  2  and the  final  phase  of  the DOC's  Cost  Equity                                                                    
Allocation  Plan. The  department was  attempting to  figure                                                                    
out  how  to  further  sustain  the  jails  once  they  were                                                                    
completed. The  department was proposing to  enter five-year                                                                    
contracts with a  consumer price index cap of  2 percent for                                                                    
the regional  and community  jails that  was similar  to the                                                                    
community residential contracts.                                                                                                
                                                                                                                                
Representative  Gara pointed  out that  DOC was  claiming it                                                                    
would  be  proving  up  and  was  not  looking  to  add  new                                                                    
programs.  He  mentioned the  prior  round  of questions  by                                                                    
Vice-Chair     Neuman,     Representative    Edgmon,     and                                                                    
Representative Holmes  and offered  that the  department had                                                                    
proved  up.   He  related  that  Commissioner   Schmidt  had                                                                    
indicated  that if  the department  was able  to admit  more                                                                    
people  through substance  abuse programs,  it would  reduce                                                                    
recidivism.  He  agreed  with  Vice-Chair  Neuman  that  the                                                                    
department had shown that there  was a benefit to vocational                                                                    
training. He  added that he  expected job  training programs                                                                    
to lose  money in a jail  and inquired if there  were modest                                                                    
improvements  to  substance  abuse and  vocational  programs                                                                    
that would  result in a lower  recidivism rate. Commissioner                                                                    
Schmidt responded in the affirmative  and that in this case,                                                                    
proving up could  mean interchanging a piece  of a substance                                                                    
abuse  program  that was  not  working  well into  something                                                                    
else.  He  relayed  that  DOC's strategy  was  to  know  and                                                                    
discuss the  numbers first and  that when a program  was not                                                                    
working, the department would rather  turn it into something                                                                    
that did  work. He opined  that "modest improvements"  was a                                                                    
good  way to  characterize  what the  department planned  on                                                                    
doing.  He concluded  that the  department  needed to  first                                                                    
spend  the money  that it  was allocated  for its  allocated                                                                    
purpose; at this point, if  the department was struggling to                                                                    
get contracts out at  the end of the year, it  would be in a                                                                    
better position  to get  more funding.  He pointed  out that                                                                    
the department  wanted to make  sure that the  programs were                                                                    
in place and effective.                                                                                                         
                                                                                                                                
Ms. Houston  continued to  speak to  slide 20  and discussed                                                                    
the  CRC annual  CPI rate  increase; the  break-down of  the                                                                    
funding was $688,500 for contract  beds and $154,500 for per                                                                    
diem  beds that  were paid  for on  an as-needed  basis. She                                                                    
spoke  to the  slide's core  services increment  and relayed                                                                    
that  it primarily  represented  DOC's charge  backs to  the                                                                    
Department of Administration in  all areas of core services.                                                                    
She discussed  the slide's  education increment  and related                                                                    
that it was  an increase to the inner-agency  receipts for a                                                                    
reimbursable  services  agreement  with  the  Department  of                                                                    
Education and Early Development.  She mentioned the negative                                                                    
increment for Eliminating GCCC -  SDPR and explained that it                                                                    
was  statutorily designated  program  receipts;  this was  a                                                                    
temporary  item  that  was  utilized   to  hire  the  Alaska                                                                    
Planning and  Architecture firm, which had  helped make sure                                                                    
the  state's interests  were being  met during  the planning                                                                    
and construction of Goose Creek.                                                                                                
                                                                                                                                
3:28:18 PM                                                                                                                    
                                                                                                                                
Co-Chair Austerman queried if  the Goose Creek position that                                                                    
was eliminated  had represented a one-time  funding request.                                                                    
Ms. Houston responded in the affirmative.                                                                                       
                                                                                                                                
Ms.  Houston  pointed  to slide  21  titled  "Department  of                                                                    
Correction  Share of  Total Agency  Operations." She  stated                                                                    
that  the  slide's chart  was  prepared  by the  Legislative                                                                    
Finance  Division  and  that   it  showed  the  department's                                                                    
general fund. She  noted that the chart spiked  from 2012 to                                                                    
2013 when Goose Creek was added.                                                                                                
                                                                                                                                
Ms.  Houston  addressed  slide   22  titled  "Department  of                                                                    
Corrections  Percent of  the  Total  Department's Budget  by                                                                    
Fund  Group." She  pointed out  that  the slide  represented                                                                    
DOC's  funding  from  all  sources   and  that  the  funding                                                                    
primarily  consisted  of  unrestricted  general  funds.  The                                                                    
slide's  yellow area  represented designated  general funds,                                                                    
which  were the  Permanent Fund  Dividend criminal  receipts                                                                    
that  were placed  into the  inmate healthcare  program. She                                                                    
mentioned  that  the  department had  general  fund  program                                                                    
receipts for its electronic monitoring program.                                                                                 
                                                                                                                                
Ms.  Houston  discussed  slide   23  titled  "Department  of                                                                    
Corrections  Continued  Budget  Growth Compared  to  10-year                                                                    
Plan." She  related that  slides 23 and  24 would  look very                                                                    
similar.  She stated  that  slide 23  was  developed by  the                                                                    
Legislative  Finance Division;  the  solid line  represented                                                                    
the department's annual management  plan numbers. The dotted                                                                    
black  line reflected  the department's  ten-year plan  with                                                                    
initiatives  and  diverged  from dotted  green  line,  which                                                                    
represented the  continuation of 7.1 percent  annual growth.                                                                    
She related that the 7.1  percent annual growth included the                                                                    
fiscal years when  Goose Creek was being  brought online and                                                                    
opined that  the actual growth  rate was probably  between 3                                                                    
percent  and 4  percent; as  a result,  the growth  would be                                                                    
closer to the ten-year plan.  She pointed out that the slide                                                                    
did not include future employer costs.                                                                                          
                                                                                                                                
Ms. Houston  discussed slide 24  and offered that  it looked                                                                    
very similar to  the last slide because DOC  was primarily a                                                                    
general fund agency.                                                                                                            
                                                                                                                                
Ms.  Houston   addressed  slide  25  titled   "FY14  Capital                                                                    
Changes."                                                                                                                       
                                                                                                                                
        · Maintain Current Level of Services $ 6,065.0                                                                          
          -Annual Facility Maintenance and Repairs                                                                              
          -Deferred Maintenance Projects                                                                                        
          -Regional    and    Community    Jails    Repairs,                                                                    
          Renovations and Equipment                                                                                             
                                                                                                                                
Ms. Houston  noted that the  DOC was seeking $1  million for                                                                    
its  annual facility  maintenance and  repairs projects  and                                                                    
$4.84 million for deferred  maintenance projects, which were                                                                    
multi-year  projects; there  were some  positive returns  on                                                                    
the projects  that that been  completed. The  department was                                                                    
also  requesting $225,000  for  the  regional and  community                                                                    
jails repairs renovations and  equipment; this funding would                                                                    
be  shared between  the 15  community jails  to cover  areas                                                                    
under fire life and safety.                                                                                                     
                                                                                                                                
Co-Chair  Stoltze  expressed   his  appreciation  for  DOC's                                                                    
purchase of about $32,000 of  Alaska grown products in FY08.                                                                    
He stated  that in  FY12, the  department had  increased its                                                                    
Alaska  grown purchases  to over  $113,000. He  discussed an                                                                    
appropriation the prior year by  the House Finance Committee                                                                    
in  amount of  $3 million  for Alaskan  food in  schools and                                                                    
noted  that the  governor had  re-submitted the  request. He                                                                    
concluded  that  the  institutional  buying  made  a  "huge"                                                                    
difference to agricultural community in Alaska.                                                                                 
                                                                                                                                
3:32:28 PM                                                                                                                    
                                                                                                                                
Representative  Thompson directed  the presentation  back to                                                                    
slide 12. He pointed to  the third bullet point and inquired                                                                    
if any more capital was  needed to accomplish the conversion                                                                    
of  the electronic  records system.  Ms. Houston  replied in                                                                    
the negative  and shared that  DOC already had  the scanners                                                                    
in place.                                                                                                                       
                                                                                                                                
Co-Chair Austerman  thanked Rep.  Isaacson for  his presence                                                                    
in  the  committee and  offered  that  more members  of  the                                                                    
Legislature should come  to the overviews in order  to get a                                                                    
head start on their subcommittees.                                                                                              
                                                                                                                                
3:33:15 PM                                                                                                                    
                                                                                                                                
Co-Chair   Austerman  discussed   the  following   meeting's                                                                    
agenda.                                                                                                                         
                                                                                                                                
HB  65  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HB 66 was HEARD and HELD in committee for further                                                                               
consideration.                                                                                                                  
                                                                                                                                
3:34:25 PM                                                                                                                    
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 3:34 p.m.                                                                                          

Document Name Date/Time Subjects
DPS HFIN overview FY2014.pdf HFIN 1/23/2013 1:30:00 PM
Public Safety Overview
FY14 HFIN DOC Overview 1-23-2013.pdf HFIN 1/23/2013 1:30:00 PM
HFIN Corrections Overview
DPS FY14 House Finance Questions Response 1-25-13.pdf HFIN 1/23/2013 1:30:00 PM
DPS Overview Response
DOC-HFC Overview Answers.pdf HFIN 1/23/2013 1:30:00 PM
DOC-Overview Response-HFIN-1-23