HOUSE FINANCE COMMITTEE January 25, 1993 1:30 P.M. TAPE HFC 93 - 8, Side 1, #000 - end. TAPE HFC 93 - 8, Side 2, #000 - end. TAPE HFC 93 - 9, Side 1, #000 - #647. CALL TO ORDER Co-Chair Ron Larson called the meeting of the House Finance Committee to order at 1:30 P.M. PRESENT Co-Chair Larson Representative Brown Co-Chair MacLean Representative Foster Vice-Chair Hanley Representative Grussendorf Representative Martin Representative Parnell Representative Therriault Representative Hoffman and Representative Navarre were not present for the meeting. ALSO PRESENT Richard Burton, Commissioner, Department of Public Safety; Kenneth Bischoff, Director, Division of Administrative Services, Department of Public Safety; Charles Cole, Attorney General, Department of Law; Bruce Bothelo, Deputy Attorney General, Department of Law; Richard Pegues, Director, Administrative Service Division, Department of Law; Mike Greany, Director, Legislative Finance Division; Joan Kasson, Fiscal Analyst, Legislative Finance Division; Representative Ulmer; Representative Barnes; Lloyd Rupp, Commissioner, Department of Corrections; Alan Cooper, Acting Deputy Commissioner, Department of Corrections; Danith Watts, Director, Division of Administrative Service, Department of Corrections. SUMMARY INFORMATION HB 55 FY 94 OPERATING BUDGET & LOAN PROGRAMS HB 56 APPROP: FORMULA/MANDATED PROGRAMS; LEASES HB 60 FY 94 CAPITAL BUDGET OVERVIEWS: Public Safety Law Corrections 1 HB 55 FY 94 OPERATING BUDGET & LOAN PROGRAMS DEPARTMENT OF PUBLIC SAFETY RICHARD BURTON, COMMISSIONER, DEPARTMENT OF PUBLIC SAFETY, provided the Committee with handouts. [Attachments #1 & #2 on file]. Commissioner Burton summarized the handouts which provided information regarding the responsibilities of the Department of Public Safety (DPS). These include: 1. Fish & Wildlife Protection 2. Fire Prevention 3. Highway Safety Planning Agency 4. Motor Vehicles 5. Alaska State Troopers 6. Village Public Safety Officers 7. Alaska Police Standards Council 8. Violent Crimes Compensation Board 9. Council on Domestic Violence & Sexual Assault 10. DPS Statewide Support - Contract Jails 11. DPS Statewide Support - Commissioner's Office 12. DPS Statewide Support - Training Academy 13. DPS Statewide Support - Civil Air Patrol 14. DPS Statewide Support - Laboratory Services 15. DPS Statewide Support - AK. Public Safety Info Network 16. DPS Statewide Support - Building Security 17. DPS Statewide Support - AK Criminal Records and ID Representative Martin questioned the fourteen position vacancies. He asked how many of those positions had been funded in the FY 92 budget. KENNETH BISCHOFF, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF PUBLIC SAFETY, replied there are no new budget positions in the proposed budget. He added that seven of those positions have been filled and were funded for FY 93. Representative Martin asked if full funding was needed for all fourteen positions. Mr. Bischoff replied that the goal of the Governor was higher trooper visibility and placing an additional seven troopers into operations for FY 94. Representative Martin asked if there would be double funding for those positions. Commissioner Burton replied that overtime funding was cut. Funds were distributed for seven positions existing in the rural areas. There is no excess cash. Representative Martin agreed it would be cheaper to have new positions rather than paying the overtime costs. Co-Chair MacLean pointed out that there is a $2.1 million dollar increase in the State Trooper's budget although there 2 is no corresponding increase for Village Public Safety Officers. Commissioner Burton stated the VPSO Program has not existed as an independent program within the Department. There is not a VPSO position. It is strictly a pass through grant program. Representative Brown asked the status of the troopers work in the Hillside community near Anchorage and other places which do not have local police protection. Commissioner Burton stated that there is money for the State troopers to perform their statutory obligations. Funds are not designated for specific areas in the State. Currently, the Hillside area is considered the same as any other unincorporated area with regard to police protection. A change in the charter of the Municipality of Anchorage would be required in order for police protection by the municipality to be assumed for the Hillside area. The Department guarantees a level of service be provided to that community. Commissioner Burton noted the issue would need to be addressed legislatively. Representative Parnell asked for follow-up information on "contract jails". Commissioner Burton stated that the law requires the State to transport prisoners; there is no requirement that municipalities do this. At this time, DPS has developed a task force to resolve the concern. The Department feels it should be handled by the Department of Corrections. Representative Parnell asked if the Department would ask for additional funding to replace the patrol vessel MV Vigilant which currently is in dry dock. Commissioner Burton stated there would not be a request for funds to replace that particular vessel although there would be requests for allocations for smaller vessels. Some funds have been used to charter a vessel. Representative Grussendorf asked if many troopers had taken advantage of the Early Retirement Incentive Program. Commissioner Burton stated that there are many reasons for the increased budget projection which includes trooper retirement, increased prisoner transportation costs and other mandated services. He added that the trooper recruiting process is detailed and expensive and takes eighteen months to complete. Representative Therriault asked for an update on the troopers position in the Healy area. Commissioner Burton stated that office has been maintained although one position has been eliminated. Currently, the Department is looking at a work load analysis for all locations where troopers are stationed. 3 Representative Brown questioned the $600 thousand dollar accounting change to the Fish and Wildlife component. Mr. Bischoff stated there was an accounting change introduced by the Office of Management and Budget (OMB) to try to manage and contain costs of leave cash-in. Representative Martin suggested the Division of Motor Vehicles (DMV) better analyze their program receipts. Mr. Bischoff responded that with the exception of minimal federal funds, their entire budget is solely funded by program receipts. Representative Therriault asked if there is federal money, currently available which the Department is not utilizing. Mr. Bischoff offered to provide a written response to the question. Co-Chair Larson noted that the subcommittee for the Department of Public Safety would be chaired by Representative Parnell with members Representative Moses, Representative Porter, Representative Mackie and Representative Navarre. Representative Parnell asked for further information on leave cash-in. Mr. Bischoff noted there could be a twenty percent discretion by the department in allowing leave-cash- in whereas, the vast majority of it is a contractual right under the PSEA contract. MIKE GREANY, DIRECTOR, LEGISLATIVE FINANCE DIVISION, stated that the leave issue is a statewide concern which will affect all departments. The costs to DPS were high enough that the Governor provided some relief. Up until this past year, there was a flat rate of assessment for personal service cash-in. OMB changed this rate to one based on the experience of each individual agency. The cash-in would be under the control of the administrator. There are collective bargaining agreements and personnel rules which address the concern. (Tape Change, HFC 93-8, Side 2). DEPARTMENT OF LAW CHARLES COLE, ATTORNEY GENERAL, DEPARTMENT OF LAW, referenced a chart which had been prepared for the Committee. The chart diagramed services provided by the Department of Law under the Attorney General. JUNEAU CIVIL 4 Commercial Government Affairs Human Services Natural Resources ANCHORAGE CIVIL Commercial Government Affairs Human Services Natural Resources FAIRBANKS CIVIL Commercial Human Services Natural Resources RURAL OFFICE Bethel Kenai Ketchikan Nome Attorney General Cole noted that there are forty-two positions requested in the Civil Division of the Department. He pointed out that the Governor supports the increased positions. Representative Martin asked about decentralizing the Attorney General's office. BRUCE BOTHELO, DEPUTY ATTORNEY GENERAL, DEPARTMENT OF LAW, stated there has been no decentralization of the Department of Law. Over the years, each attorney general has taken the position that legal services for the Executive Branch be handled exclusively by the Department of Law. Representative Grussendorf asked about permit regulations filed by electrical contractors. Mr. Bothelo replied that currently there is only one attorney overseeing regulations for contractors. She is overloaded and behind in handling those permits. New regulation attorneys are being requested. REPRESENTATIVE ULMER inquired about the responsibilities of the Department's rural civil offices. Mr. Bothelo replied that those positions are almost exclusively dedicated to children's proceedings. They are located where a superior court judge is stationed. The caseloads are equivalent to full time work. 5 Representative Brown questioned the number of positions requested for the civil section of the Department. JOAN KASSON, FISCAL ANALYST, LEGISLATIVE FINANCE DIVISION, replied the Department has requested sixteen legal service operation positions and one position in oil and gas operations. Thirteen of those positions will come from general fund monies. Representative Brown questioned the five million dollar Exxon Valdez appropriation for FY 94. Mr. Bothelo stated there is an anticipated forty percent reduction, although there are on going obligations with Exxon-USA and Alyeska even though the settlements have been made. Representative Grussendorf expressed concern that the Department of Revenue was decreasing their tax auditor positions. Attorney General Cole recommended that the Department of Revenue hire ten additional auditors. He noted that work by the Department of Law is often dependent upon the audit reviews from the Department of Revenue. Representative Brown asked the structural difference between the oil and gas litigation and the oil and gas operations. She inquired as to the source of funds for those operations. Mr. Bothelo responded that the Legislature required that the Permanent Fund provide one quarter of the funding necessary for litigation on royalty matters. The overall operation is general fund dollars with royalties from the Permanent Fund. The operations are the costs to the Department to staff its internal staff. The majority of the money is used to contract with consultants for legal service expertise. Attorney General Cole offered to discuss the criminal division of the Department at a latter date with the subcommittee meeting. Co-Chair Larson stated that the Department of Law Subcommittee would consist of Representative Larson, Chair and members Representative Barnes, Representative Porter, Representative Olberg, Representative Davidson and Representative Navarre. (Tape Change, HFC 93-9, Side 1). DEPARTMENT OF CORRECTIONS LLOYD RUPP, COMMISSIONER, DEPARTMENT OF CORRECTIONS, provided the Committee with "STATE OF ALASKA, DEPARTMENT OF CORRECTIONS, FY94 GOVERNOR'S OPERATING BUDGET OVERVIEW". [Attachment #4 - on file]. He itemized the Department of 6 Correction's issues: 1. An alcohol driven correctional crisis. 2. Significant increases in the last year: * 700% increase in court-ordered report cases waiting to enter jail to serve sentences. * 34% increase in sentenced misdemeanant population * 11% increase in sentenced felon population * 32% increase in community residential center placement usage. 3. Ten of the 12 institutions are out of compliance with emergency population caps. 4. Pending Impact -- If the state added 100 beds today, it would take 374 days to catch up to the backlog. 5. Conservative trends indicate the need for approximately 600 new beds by 1996, if no action taken. 6. Expanded use of alternative punishments. 7. The Department must increase it's commitment to the use of intermediate sanctions. 8. Overtime has increased because of staff reductions. 9. Overcrowding has created court ordered violations. * prisoners sleeping on cots on gym floors * disparity in housing women * cohabiting sentenced and unsentenced prisoners * cohabiting misdemeanant and felons 10. Rehabilitation programs need to be expanded * inadequate vocational/educational programs * inadequate substance abuse programs * women's program disparity 11. Medical costs are spiraling 12. Rural and cultural sensitivity must be increased in the Department. 7 13. Significant need for expansion of data collection and analysis. Representative Martin questioned the 72-hour alcohol prevention. He was concerned that the provision was being used as a punishment technique rather than finding a solution to the problem. Commissioner Rupp commented that the situation is difficult given the over burdened State jails. The intent is to assess the problem and provide intervention. The difficultly is in finding an alternative to placing the person inside a correctional institution. REPRESENTATIVE BARNES stated that the intent of the DWI law was not to provide treatment. The intent was to create a deterrent for those persons who occasionally drink and drive. The law was changed to 72 hours in order that a full three days would be served. The sentence was created only as "swift and just punishment" for driving while drinking. She added her support to the Department's "Project Hope" and recommended adding a substantial fine. Commissioner Rupp commented that the term "intervention" is used loosely and he understands that no one could be "treated" in a three day period. He supported the idea of fines and also requiring community service work. Commissioner Rupp pointed out that the bulk of the current budget is for institutions although with increased statewide programs. Eighty-one percent of the proposed budget is designated for institutions. Representative Barnes asked to clarify what happened at a previous Correction's subcommittee meeting. She pointed out that she had asked that the previous Deputy Commissioner be fired because of substantial information available to warrant this action. Representative Barnes reviewed with the Committee various documents substantiating her inability to receive information requested of the Department. She made reference to the inappropriateness of a photograph of the Deputy Commissioner which appeared in a biker magazine. Co-Chair Larson asked for details regarding the reopening of the Wildwood Correctional Institute. ALAN COOPER, INTERIM DEPUTY COMMISSIONER, DEPARTMENT OF CORRECTIONS, said that Wildwood was closed May 15, 1992, shifting the majority of the population to the Palmer Camp. There has been an increase of 176 prisoners since July, 1992, and since September, 1992, there has been a great increase in crime. Ten of the facilities are over emergency capacity. Wildwood was reopened in early January, 1993, to 8 accommodate these increased needs. There remains fifty-nine unused beds at Wildwood. He added that the moving of prisoners jeopardizes public safety. Commissioner Rupp spoke in support of the recommendations presented by the Corrections subcommittee. He added his support for intermediate sanctions and Project Hope. Representative Brown asked if the requested budget would be the minimum needed to maintain public safety. Commissioner Rupp replied that this is a frugal request although it would not reduce the FY 93 budget. He continued, there will be a number of pilot programs to help the Department become more effective. Co-Chair Larson noted that the Correction's subcommittee would be Chaired by Representative Barnes and members Representative Green, Representative Parnell, Representative Ulmer and Representative Brown. ADJOURNMENT The meeting adjourned at 3:25 P.M. 9