Legislature(1997 - 1998)
03/02/1998 02:00 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
March 2, 1998
2:00 P.M.
TAPE HFC 98 - 47, Side 1.
TAPE HFC 98 - 47, Side 2.
TAPE HFC 98 - 48, Side 1.
TAPE HFC 98 - 48, Side 2.
CALL TO ORDER
Co-Chair Hanley called the House Finance Committee meeting
to order at 2:00 P.M.
PRESENT
Co-Chair Hanley Representative Kelly
Co-Chair Therriault Representative Grussendorf
Representative Martin Representative G. Davis
Representative Foster Representative Mulder
Representatives Kohring, J. Davies and Moses were not
present for the meeting.
ALSO PRESENT
Representative Ivan Ivan, (Testified via Teleconference),
Akink; Representative Joe Ryan; Representative Jerry
Sanders; Annalee McConnell, Director, Office of Management
and Budget, Office of the Governor; Dan Spencer, Chief
Budget Analyst, Office of Management and Budget, Office of
the Governor; Mike Irwin, Commissioner, Department of
Community and Regional Affairs; John Bitney, Alaska Housing
Finance Corporation, Anchorage; Dwayne Peeples, Director,
Division of Administrative Services, Department of
Corrections; Janet Clarke, Director, Division of
Administrative Services, Department of Health and Social
Services; Karen Pearson, Health Program Manager, Division
of Public Health, Department of Health and Social Services;
Nico Bus, Budget Coordinator, Department of Military and
Veterans Affairs; Nancy Slagle, Director, Division of
Administrative Services, Department of Transportation and
Public Services; Tom Brigham, Director, Division of
Statewide Planning, Department of Transportation and Public
Facilities; Kevin Brooks, Director, Division of
Administrative Services, Department of Fish and Game;
Rebecca Gamez, Director, Division of Employment Services,
Department of Labor; Sharon Barton, Director, Division of
Administrative Services, Department of Administration;
Keith Gerken, Architect-Facilities, Division of General
Services, Department of Administration; Dean Guaneli, Chief
Assistant Attorney General, Criminal Division, Department
of Law; Mary Lou Burton, (Testified via Teleconference),
University of Alaska, Fairbanks.
SUMMARY
HB 370 An Act making an appropriation for relief of the
1997 fishery disaster in Bristol Bay and on the
Kuskokwim River; and providing for an effective
date.
HB 370 was HELD in Committee for further
consideration.
HB 461 An Act making supplemental and special
appropriations; and providing for an effective
date.
HB 461 was HELD in Committee for further
consideration.
HOUSE BILL NO. 370
"An Act making an appropriation for relief of the 1997
fishery disaster in Bristol Bay and on the Kuskokwim
River; and providing for an effective date."
REPRESENTATIVE IVAN IVAN, (TESTIFIED VIA TELECONFERENCE),
AKINK, explained that HB 370 requests $2.3 million dollars
in general funds as a match for the $7 million federal
dollars granted through the Magnuson-Stevens fund. The
funds would provide for programs designed to assist
communities and fishermen in the Kuskokwin and Bristol Bay
regions which the Administration has been declared an
economic disaster. The proclamation was issued in response
to the poor fishing returns occurring in those areas.
The State share would be $2.3 million dollars. He
continued, with in-kind contributions provided by the
communities and the Department of Community and Regional
Affairs (DCRA), the actual amount requested from the
Legislature would be $1.875 million dollars.
The following programs would be funded from the
appropriation:
? Community grant program for projects that are of
direct and/or indirect benefit to the fisheries
that sustain the economic viability of
communities and would help to diversify the
economy or assess the economic and social effects
of the commercial fisheries failure.
? Loan programs to the Bristol Bay, Chignik and
Kuskokwin permit holders who are in financial
crisis. The Division of Investments at DCRA
would administer the program.
? Economic planning in the Kuskokwin region. The
funds would be used to enhance economic planning
capability and/or continue economic planning
process and procedures.
? Fisheries education, training and research such
as smelt outmigration, salmon escarpment counts
and selected resource management issues.
Representative Ivan summarized that a portion of the
funding would be used by DCRA to cover administrative costs
associated with the program.
REPRESENTATIVE JOE RYAN testified in support of the
purposed legislation. He spoke about the intense poverty
in village areas as a result of poor economic fishing
conditions last summer. In those areas, some of the
utility cooperatives have threatened to close, as the
villagers have not been able to afford to pay their bills.
Representative Ryan explained that DCRA initially requested
federal funding, although, the Federal Emergency Management
Agency (FEMA) stipulated that this type of economic
disaster request would not fall under their privy.
Following that meeting, the U.S. Department of Commerce
stepped in; FEMA did not want to establish a precedent of
granting money for this type of need because of the
resulting repercussions which could occur in other states.
Representative Ryan noted, following much discussion, the
federal government agreed to help provide funding to create
work projects in the villages so that they would be able to
get "back on their feet". Unfortunately, that program will
not come into effect until August 1998, after the next
fishing season. A timing which would not address the
current crisis.
Representative Ryan reiterated that the people in this area
are desperate and need Legislative help. He urged the
Committee's support of the measure.
Representative Martin questioned why the legislation had
been limited to two regions while the entire area had
experienced hardship. Co-Chair Hanley pointed out that
there is criteria established by the federal government,
which determines the disaster category. He clarified that
this is a federal program in which the State would be
requested to match.
REPRESENTATIVE JERRY SANDERS commented that the majority of
people affected by the fish shortage live in this area and
have a very low yearly income. They often make less than
$7 thousand dollars a year. He stressed that this funding
would not help the "high-liners". The loans will be small
and will need to be repaid.
Co-Chair Hanley asked for further information regarding the
Magnuson-Stevens federal act.
MIKE IRWIN, COMMISSIONER, DEPARTMENT OF COMMUNITY AND
REGIONAL AFFAIRS (DCRA), explained that last year was the
first time funding had been available from the Magnuson-
Stevens Act, which was established to address economic
disasters. Section "312" of that act was crafted in 1995
following a crash in the Georgia fisheries. That request
was denied. At that time, there had been enough impetus
created and people affected, that the federal government
agreed that there should be a program to help with those
types of economic disasters.
Alaska is the first State to have a secretarial declaration
under the Magnuson-Stevens provision. On July 18, 1997,
Governor Knowles claimed an economic disaster in the
Bristol Bay and Kuskokwin areas. Bristol Bay and Kuskokwim
seemed to fit the type of situation most appropriate by
Section 312 standards of the Magnuson-Stevens Act. The
federal government uses certain criteria to determine if
there has been an economic disaster. The criteria address
income and the amount of dependence that the area has on
that source of income.
DCRA was able to create a package that was acceptable to
the federal government yet met the communities needs. HB
370 is comprised of 70% community block grants for
fisheries, economic concerns and development enhancement.
The remaining 30% would consist of a no-interest loan
program for individuals who live in those communities.
Representative Martin voiced concern in how broad the
funding language of the legislation was. He noted that he
would support helping individual's hardships, but
questioned the community block grant aspects of the
legislation. Commissioner Irwin explained that the
committee substitute contains the amount that was included
in the Governor's supplemental request for this funding.
He explained that the way the federal government program
works is that a certain amount of in-kind be required
against the State's match. He agreed that the people of
the area who are economically suffering, their needs should
be addressed first. He guaranteed Committee members that
the loan program would be the first aspect implemented.
Commissioner Irwin commented that the people living in the
villages have advocated for these projects. The programs
match with language in the Magnuson-Stevens Act. This was
a way in which the community as a whole could develop some
infrastructure and enhancement for future wages. There is
$1.86 million dollars set aside for the loan program,
providing an economic benefit in the amount of $1 thousand
dollars per person. The community works project would not
be able to begin until the end of the winter. Co-Chair
Hanley asked if there are restrictions within federal law
which prohibited DCRA from loaning more than $1 thousand
dollars per person. Commissioner Irwin replied that there
was not a limit established; these would be "no-interest"
loans and the Permanent Fund Dividend (PFD) could be used
as collateral.
Representative Kelly believed that it would be more
advantageous to take the entire amount provided by the
federal government and make larger loans available to those
living in the village area. He suggested that the public
works project probably would not work in an area where the
resident's fish as fishing is what they do and generally
they are not interested in other job markets.
Commissioner Irwin understood Representative Kelly's
concern. He emphasized that the people living in these
regions initially did not want the loan program. U.S.
Congress stressed the need to implement the program. He
stated that the proposed projects would enhance the
community while also meeting the objectives of the
Magnuson-Stevens Act.
Representative Kelly reiterated that if it was the intent
to help people during this economic need, that should be
addressed during the loan process. He stated that the
public works projects should be addressed in a competitive
process in the Capital Budget.
Co-Chair Therriault asked what an "in-kind" contribution
from DCRA would consist of. Commissioner Irwin replied
that the Department has accumulated a lot of staff time and
travel dollars. In response to the fisheries disaster,
which began last July, DCRA has spent close to $200
thousand dollars. Those expenses will not be prorated,
although, the Department's expectation is that in moving
forward, there will be in-kind contributions to help defray
the costs.
Co-Chair Therriault asked DCRA's program support and
general fund dollars attached with it. Commissioner Irwin
replied that 2% of the overall program cost would be
allocated to the Department for in-kind support expenses.
Co-Chair Therriault inquired the length of the loans.
Commissioner Irwin replied initially it had been four years
but now it might have been changed to two years. He
reiterated that borrowers have the option of using their
PFD's as collateral.
(Tape Change HFC 98- 47, Side 2).
In response to Representative Therriault's query,
Commissioner Irwin touched on community project
possibilities to be undertaken to improve that quality of
life in those areas.
Representative G. Davis pointed out that the economic
disaster was affecting more than just the fishermen,
although, the loan was not being offered to any others.
Commissioner Irwin stated that there was not enough money
to go around. He added that there is a program through the
Small Business Association (SBA) for getting small
businesses 4% loans available primarily for people involved
in the fisheries communities.
Co-Chair Hanley asked what would count as a match toward
federal funds. Commissioner Irwin stated that the
Department of Commerce had accepted DCRA's formula for
community and local in-kind matching determined by a
federal percentage. Co-Chair Hanley asked if the $3
million dollars for FEMA would be considered a match.
Commissioner Irwin advised that it would not. Every state
dollar spent has to be matched by three federal dollars.
Federal money will be available the week of March 7th.
The economic disaster determination was made by the
congressional delegation. He commented that a formula had
not been used to make that determination.
Co-Chair Hanley asked if some of the money could be used
too pay the utility providers. Commissioner Irwin replied
that the funding could not be used to subsidize fuel sales.
The local utilities would need to rely upon people
receiving loan money to pay back their utility bills.
Co-Chair Hanley inquired if there were non-residents
eligible for the loans. Commissioner Irwin advised that
they could possibly qualify. It would be based upon permit
holding in one of the selected areas. There will be
limitations in calculating the percent of the annual
household income from the fishery. In order to qualify for
the loan program, a person must make 51% or more of their
income in that fishery.
Representative Martin commented that it appeared most of
the funds would be distributed to the Administration rather
than going to those in need. Commissioner Irwin responded
that administrative costs would amount to 2% of the total
funds.
Representative Foster asked if assistance would be limited
to the list of villages named in the bill. Commissioner
Irwin replied that they would be available to the permit
holders in the Bristol Bay and Kuskokwin River region. Co-
Chair Hanley pointed out that permit holders could get the
loans no matter where they live if they meet the criteria.
Community grants would be limited to communities listed in
the bill.
Co-Chair Hanley agreed that the loans were essential,
whereas, he felt that the economic development concerns
require further discussion in order to be placed on the
fast track time-sensitive supplemental. He did not think
that diversification of the economy would help the
fishermen.
Commissioner Irwin pointed out that initially, the U.S.
Department of Commerce specified that there would be no
direct grants administered. DCRA struggled to convince the
feds that the proposed legislation would be a way to get
funds into the pockets of the villagers. The proposed
community works program would provide the best long term
help for the villages. Because the federal government is
paying for the bulk of the program, DCRA is forced to opt
for these expenditures. To not include these programs
which comprise 70% of the proposal, DCRA would have to
renegotiate with Congress. He warned such action could
slow up the process or even make it "dead in the water".
Co-Chair Hanley voiced his frustration with the program and
how well it will ultimately affect the people in those
areas.
Representative Ivan advised that the response team had
created the best program possible so to receive the direct
grant for the individuals living in the village areas. He
urged the Committee's support for the legislation.
HB 370 was HELD in Committee for further consideration.
(Tape Change HFC 98- 48, Side 1).
HOUSE BILL NO. 461
"An Act making supplemental and special
appropriations; and providing for an effective date."
ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGMENT AND
BUDGET, OFFICE OF THE GOVERNOR, provided an overview of the
proposed time-sensitive appropriations from the Governor's
FY98 Supplemental Bill (HB397, SB292). She assured
Committee members that the Administration had placed strict
limits on what would be considered time-sensitive.
DEPARTMENT OF REVENUE - 1 (a)
DAN SPENCER, CHIEF BUDGET ANALYST, OFFICE OF MANAGEMENT AND
BUDGET (OMB), OFFICE OF THE GOVERNOR, stated that 1(a)
would address the immediate funding for monies needed to
prevent cash-flow problems for the Bank of America
building. Department of Administration (DOA) has been
paying maintenance costs out of their budget as a stopgap
measure, however, that budget is experiencing it's own cash
flow problems. Private tenants are currently paying AHFC,
and OMB would prefer to give AHFC the authority to contract
with DOA. The request would address the fiscal note
situation resulting from last session.
JOHN BITNEY, ALASKA HOUSING FINANCE CORPORATION (AHFC),
ANCHORAGE, advised that AHFC at this time has no authority
to use the receipts from the building to pay for operation
and maintenance costs. AHFC has been collecting the
receipts in a separate holding account. With this
authority, AHFC would RSA reimbursement to DOA for their
expenses.
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS - 1(b)
Co-Chair Hanley advised that Section 1(b) had been
addressed in HB 370.
DEPARTMENT OF CORRECTIONS - 1(c)
Mr. Spencer explained that the requested appropriation
would be used to cover costs associated with Community
Residential Center (CRC) beds. Some CRC contracts will
expire March 31, 1998. The Department cannot implement
contracts to continue these beds if this requested funding
is not made available.
Representative Mulder commented that the Department is
looking into existing funding that could be applied.
DWAYNE PEEPLES, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF CORRECTIONS (DOC), noted that since
the supplemental request was submitted, the Department has
done a reassessment of the CRC funding BRU's. There is $18
thousand dollars available in a new CRC BRU, which could be
available because of start up delays of new beds.
Additionally, $64 thousand more dollars has been identified
in an existing CRC BRU, money which could also be made
available. He noted that to date, the $236 thousand dollar
initial request could be reduced by $82 thousand dollars.
Mr. Peeples addressed the program receipts. He stated that
$50 thousand dollars would come from the Drinking While
Intoxicated (DWI) Program. The Department was authorized
to receive funds which were above the remaining account
balance in that program. Co-Chair Hanley commented that
the in-mates occupying the beds would pay for a large
portion.
DEPARTMENT OF HEALTH AND SOCIAL SERVICES - 1(d)
JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, stated
that the $100 thousand dollar appropriation request would
be used to fund the Maternal Child Care Clinics scheduled
to begin in late March. These clinics may be cancelled if
a supplemental appropriation allowing use of program
receipts from clinic fees is not approved.
KAREN PEARSON, HEALTH PROGRAMS MANAGER, DIVISION OF PUBLIC
HEALTH, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, spoke to
the work performed by the specialty clinics. With a
professional team traveling out to rural communities allows
those families not to have to travel to Anchorage or the
lower 48 in order to access medical services.
Co-Chair Hanley pointed out that not all people pay for
services received at these clinics. He asked if the
people, who do pay, cover costs of the clinics. Ms. Clarke
understood that the clinics were subsidized through other
funding mechanisms. Last year, the Department received
funding through Alaska Mental Health Trust Authority as
well as federal block grants. She agreed that program
receipt revenue does not cover the full cost of the
clinics.
Co-Chair Hanley questioned why a supplemental request
exists when the Department had these clinics included in
last year's budget proposal. Ms. Pearson explained that
the program staff was not aware during last year's budget
that the Division would no longer be able to go to the
Legislative Budget and Audit Committee (LBA) for additional
program receipts.
Representative Foster echoed concern. Ms. Clarke noted
that the Department does have some remaining funds
resulting from an increase received from the FY99 Mental
Health Trust Authority which could continue some clinics.
DEPARTMENT OF MILITARY & VETERAN'S AFFAIRS - 1(e)
NICO BUS, BUDGET COORDINATOR, DEPARTMENT OF MILITARY &
VETERAN'S AFFAIRS (DMVA), stated that the requested funding
would coordinate federal receipts for Poker Flats Research
Range. The Department will transfer funding to the
University of Alaska so that construction can begin this
spring.
The specific work to be done would happen over a two year
time frame, costing about $20 million federal dollars.
Those funds would be used for refurbishment of a road and
the technology support. He noted that because of existing
agreements, it would be easiest for those funds to be
distributed through DMVA. The Department would act as
funding conduit. Mr. Bus noted that there would be no
money for the Department.
Representative Martin pointed out that Section 1(e) and
1(i) represented the same money. He asked if the funds
would conflict with the Kodiak Space Center. Co-Chair
Therriault explained that Poker Flats rockets were
atmospheric sounding rockets and which could not achieve
orbit; the Kodiak facility rockets will orbit.
Representative Martin asked how much money had been spent
over the past five years for upgrading.
MARY LOU BURTON, (TESTIFIED VIA TELECONFERENCE), UNIVERSITY
OF ALASKA, FAIRBANKS, believed that approximately $10
million dollars has been spent since 1990. The project has
been 100% federally refunded.
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES - 1(f)
Co-Chair Hanley questioned why this item had been included
in the fast track supplemental.
NANCY SLAGLE, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES (DOTPF), stated that this stretch of the road is
in great need of repair. It had been included in the State
Transportation Improvement Program (STIP) to fix sections
of the road during a five years period beginning in 2000.
Because of the damages, which occurred this summer, the
Department realized they needed to speed up the work. The
road has deteriorated. The Federal Highway department has
granted approval for this project.
The Department is rapidly working to get the proposal
completed in order to go to bid by April so that the
repairs could be done by August. She pointed out that many
states are currently using federal highway money to
maintain roads, although it requires each state to provide
a plan.
Ms. Slagle pointed out that a specific section of road has
been identified for repair. The State would not be allowed
to undertake general overall maintenance when attempting to
meet Federal Highway approval, yet, specific work will be
approved.
Co-Chair Hanley asked if the State had overappropriated
it's original match or if the Department had held off on
already approved federal projects.
THOMAS BRIGHAM, DIRECTOR, DIVISION OF STATEWIDE PLANNING,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, replied
that neither point had occurred. The Department has
increased the size of the FY98 program to general
expectation. The Tok project fits into bigger project
funding appropriated by the federal government, which would
not displace other projects.
Co-Chair Hanley inquired the total highway match for this
year. Mr. Brigham replied it would be in the amount of
$24.5 million dollars. Because of new federal
authorization, there could be additional federal funds
available. The average match rate is 10%.
Co-Chair Therriault asked if the proposed increment would
cause a shift to any other proposed project. Mr. Brigham
stated that nothing would be displaced and no major design
would be needed.
DEPARTMENT OF FISH AND GAME - 1(g)
KEVIN BROOKS, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF FISH AND GAME, stated that the
requested allocation would be used for subsistence harvest
research projects. He added, early approval of federal
receipts would allow timely completion of these projects.
There are five separate small projects included in the
request, all of which will need to be completed by
September 30, 1998. He added that this would be a 100%
federal fund.
Representative Foster argued the point that the Nome
subsistence position had been cut leaving sixteen positions
residing in Anchorage. He indicated his resentment in
supporting sixteen subsistence positions in Anchorage when
the need is in Bush Alaska. Mr. Brooks responded that the
economics of maintaining Bush Alaska offices and leases
became prohibitive. Flying from village to village is
expensive. The Anchorage office has always been the hub.
He summarized that the budget has been cut so small, it is
impossible for the Department to cover such a wide area.
DEPARTMENT OF LABOR - - 1(h)
REBECCA GAMEZ, DIRECTOR, DIVISION OF EMPLOYMENT SERVICES,
DEPARTMENT OF LABOR (DOL), explained that the $3 million
dollar supplemental request would be used to establish the
Alaska Disaster Assistance Program (ADAP). Early approval
will allow relief for those persons suffering from the loss
of their primary income due to the poor salmon-fishing
season in Bristol Bay.
Representative Martin asked how the program was different
from HB 370. Ms. Gamez explained that this was not a loan
program; it was an entitlement program. DOL anticipates
quick turnover costs. Administrative costs will amount to
approximately 8.4%; $2.75 million dollars will be available
to 54 communities in the State.
Co-Chair Hanley asked if the Department used guidelines
similar to those established by FEMA. Ms. Gamez responded
that the determination would be based on a combination of
regulations and laws and would include some of those used
through FEMA. The federal government turned that request
down. An amount had been determined by estimating the
maximum number of people that would be eligible under the
Disaster Unemployment Assistance program and then used the
average unemployment benefit rate received.
Representative Martin asked why the program had been
limited to Bristol Bay. Ms. Gamez replied that the
Division had "stuck" with the basic FEMA request made a
number of months ago and did not expand it. Representative
Martin suggested adding language specifying all communities
that could qualify for the funding.
(Tape Change HFC 98- 48, Side 2).
Co-Chair Hanley noted that to undertake this request would
require additional legislation. Normally there would be a
fiscal note attached with the bill. Mr. Spencer questioned
where the fiscal note would show up; he recommended the use
of conditional language. A fiscal note would provide
appropriation contingent upon the bill passing.
Appropriation could be made in the bill, but if the bill
did not pass, the appropriation would be no good. Co-Chair
Hanley noted that there could be an appropriation bill
tagging along with the legislation.
UNIVERSITY OF ALASKA - 1(i)
Co-Chair Hanley noted that Section 1(i) was tied with
Section 1(e).
DEPARTMENT OF MILITARY & VETERAN'S AFFAIRS - 1(j)
Mr. Bus explained that the appropriation would fund the
Youth Corps ChalleNGe program. He stated that early
approval was needed to begin the next scheduled class on
March 16, 1998. He advised that $250 thousand dollars had
been allocated in the FY98 budget to support the program
with the understanding that the Department could come back
during the supplemental budget process.
The Department did not know what the federal funding
commitment would be. The initial allocation for Alaska was
about $2 million dollars. DMVA continues to run the
program in anticipation of 80 graduates per class in each
of the two classes. In order to get the program back up to
par; the Department is proposing supplemental funding
request in the amount of $608 thousand dollars to secure
the program through June, 1998.
Co-Chair Hanley asked the total anticipated budget for the
year. Mr. Bus replied that it would be $3.4 million
dollars, consisting of State and federal funding. The
federal government has committed to $2.1 million dollars.
Co-Chair Hanley asked the amount of the request if there
were 60 graduates. Mr. Bus explained that becomes
complicated as the federal guidelines require 75% federal
funds for 25% State funding match requirements. Co-Chair
Hanley requested an impact statement indicating the cost
differential for 60 and/or 80 graduates. He pointed out
that the percentage provided by the feds is declining.
Representative Foster pointed out that when the program
started it was a total federally funded program, however,
at this time, the projection is that federal funding will
pay 60% of costs and the State will provide 40% of the
associated costs. Representative Foster pointed out that
the cost per graduated student is approximately $22
thousand dollars. Mr. Bus advised that the program was
geared to the "at-risk" youth and that it is a cost
avoidance program. The cost of sending a youth to a
correctional facility is approximately $66 thousand
dollars. Mr. Bus emphasized that at-risk youth really
benefit from the program.
DEPARTMENT OF ADMINISTRATION - 1(k)
Mr. Spencer noted that the Department of Administration
(DOA) was requesting funding for needed monthly lease
payments for the period from now through May, 1998.
SHARON BARTON, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF ADMINISTRATION, advised that when
the FY98 budget had been passed, DOA projected that budget
would be short approximately $1.7 million dollars. The net
effect of activity since that time has resulted in a total
request of $1.4 million dollars.
HB 461 was HELD in Committee for further consideration.
Co-Chair Hanley asked for further clarification regarding a
potential supplemental request resulting from the decision
made by Judge Hunt to the Department of Corrections
regarding the overcrowding situation.
DEAN GUANELI, CHIEF ASSISTANT ATTORNEY GENERAL, CRIMINAL
DIVISION, DEPARTMENT OF LAW, provided Committee members a
history of the Cleary case which was filed in 1981 and
which challenged all aspects of the State's prison system.
There was a six-week trial of that case in 1984. After the
trial, the Anchorage Superior Court determined that system
was in danger of becoming unconstitutionally overcrowded.
The Superior Court established population limits at all the
facilities. Through negotiations, the Department was able
to get increases to those limits set.
Mr. Guaneli stressed that those population limits have now
been seriously exceeded. The Superior Court has held the
State in contempt for the last three years, accruing fines
at the rate of $100 thousand dollars a month. He advised
that the Court has become frustrated with the Department's
inability to get the population under control. The Court
has appointed a new Court Master to pressure the Department
to create a plan which will work.
The most recent order by the Court, made in early February,
has required that by March 9th, the Department of
Corrections provide a plan that will reduce numbers in the
facilities by May 1st. Mr. Guaneli warned that if the
Department is unable to do that, the Court has options
available. Courts in other states have released prisoners,
some Courts have taken over running the prison systems, and
some have removed funds from the State Treasury to run the
system.
Mr. Guaneli emphasized that this issue needs to be taken
seriously. There are 500 hundred prisoners who need to be
addressed in order for the State to be down to an emergency
capacity. Co-Chair Hanley advised that the State should
anticipate additional costs this fiscal year.
ADJOURNMENT
The meeting adjourned at 4:25 P.M.
H.F.C. 16 3/02/98
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