Legislature(1995 - 1996)
1996-03-11 House Journal
Full Journal pdf1996-03-11 House Journal Page 3061 HB 541 HOUSE BILL NO. 541 by the House Rules Committee by request of the governor, entitled: An Act providing for the issuance of general obligation bonds in the amount of $148,500,000 for the purpose of paying the cost of design and construction of state correctional facilities; and providing for an effective date. was read the first time and referred to the Finance Committee. The following fiscal notes apply: 1996-03-11 House Journal Page 3062 HB 541 Fiscal note, Office of the Governor, 3/11/96 Fiscal note, Dept. of Revenue, 3/11/96 The Governor's transmittal letter, dated March 11, 1996, appears below: Dear Speaker Phillips: Under the authority of art. III, sec. 18, of the Alaska Constitution, I am transmitting a bill providing for the issuance of general obligation bonds to finance the expansion of regional correctional facilities at several locations in Alaska. The bonds would be issued in the principal amount of $148,500,000. Alaska's jails and prisons are severely overcrowded. While we have put more police on the streets and rewritten the criminal code to produce longer and stronger sentences, we have not significantly increased the number of prison beds in Alaska's correctional system since Spring Creek Correctional Center opened in January 1988. As a result, we now face substantial fines for any violation of court- ordered population limits at our correctional facilities. We are now also confronted by a new class action lawsuit related to the housing and program needs of female prisoners that promises to be just as costly and protracted as the Cleary litigation if the issues it raises are not addressed swiftly. My Administration inherited this problem, and we accept the responsibility of remedying it. After several months of study and planning by the criminal justice mini-cabinet, we propose this bill as one part of a three-part plan to manage Alaska's growing prisoner population. Our approach to expanding capacity takes a statewide view and puts the jail and prison beds where they belong -- in the regional centers around the state where there are courts, prosecutors, defense attorneys, law enforcement resources, and existing correctional facilities suffering from overcrowding. 1996-03-11 House Journal Page 3063 HB 541 In addition to expansion, the Department of Corrections will pursue new initiatives to reduce the number of low-risk offenders entering correctional facilities, while increasing the number of low-risk offenders exiting our jails and prisons. These two parts of the plan are equally as critical as expansion. They will employ both programmatic efforts and increased use of private and non-profit halfway houses to ensure that beds in our secure facilities are available for dangerous offenders. A prisoner will not be released from a secure setting unless the prisoner is judged to be at low risk to reoffend; protecting the public will remain as the foremost concern as these parts of the plan are carried out. I must note that even if this three-part plan is completely successful, Alaska will not have solved its prisoner problems. Our state population continues to grow; alcohol abuse continues to fuel a disproportionate growth in the crime rate; and tough new laws and enhanced law enforcement efforts are resulting in our criminal justice system apprehending, convicting, and incarcerating more offenders than at any time in our history. If we are ever to stem this rising tide of prisoners, we must focus more resources on prevention and intervention, especially in programs aimed at our young people. Some 1,500 juveniles were arrested last year on felony charges and we know that many of these children eventually will appear in the adult corrections system. Clearly, we need stronger efforts in prevention, and I anticipate specific recommendations along these lines when the Youth and Justice Conference that I convened last fall issues its report later this year. Also, I again urge the legislature to work with me to endow, for the first time, the recently reconstituted Children's Trust Fund as a public-private partnership dedicated to meeting the needs of troubled children. For now, we are obligated to provide more jail and prison space in which to house our prisoners. Construction and operation of these proposed correctional projects will represent a significant commitment of state revenue to support our criminal justice system and, in turn, protect the people of Alaska. But we believe that over the long term it will be the most cost-effective method of dealing with our growing prisoner population. 1996-03-11 House Journal Page 3064 HB 541 I have purposefully chosen general obligation bonds as the primary vehicle to finance expansion for two reasons. First, with revenue declining, it is more feasible to pay for these projects over a long term than it would be to fund them with direct capital appropriations. Second, the Alaska Constitution requires general obligation bonds to be submitted to the voters of the state for ratification and I strongly believe that such a substantial financial commitment deserves to be subjected to a vote of the people. I have taken the additional step of including the costs of the first full year of operations once all of the projects in the ballot proposition are completed. We expect an estimated average annual debt service payment of $13,423,000 through 2013 if the bonds are sold at par. The Department of Corrections estimates that the operating costs for the first full year after all these projects are completed will be approximately $28,000,000. Cost reductions made possible by the projects, such as closure of the 6th Avenue jail in Anchorage and the return of 206 prisoners from a contract facility in Arizona, are expected to produce a net operating cost of $18,700,000 for these facilities in the first year that all of them are in use. If approved by the voters, this commitment will then become an integral part of the state's long-range financial plan. I urge your support for this bill. Sincerely, /s/ Tony Knowles Governor