Legislature(2015 - 2016)HOUSE FINANCE 519
02/09/2015 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB72 || HB73 | |
| Fy 16 Budget Overview: Department of Transportation and Public Facilities | |
| Fy 16 Budget Overview: Department of Corrections | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 72 | TELECONFERENCED | |
| += | HB 73 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HOUSE BILL NO. 72
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs, capitalizing funds, making
reappropriations, and making appropriations under art.
IX, sec. 17(c), Constitution of the State of Alaska,
from the constitutional budget reserve fund; and
providing for an effective date."
HOUSE BILL NO. 73
"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."
1:33:03 PM
^FY 16 BUDGET OVERVIEW: DEPARTMENT OF TRANSPORTATION AND
PUBLIC FACILITIES
1:33:06 PM
MARK LUIKEN, COMMISSIONER, DEPARTMENT OF TRANSPORTATION AND
PUBLIC FACILITIES, (DOT/PF) discussed the PowerPoint
presentation, "Alaska Department of Transportation and
Public Facilities, FY 16 Governor's Endorsed Budget
Overview" (copy on file).
Co-Chair Neuman asked that the presentation highlight the
major projects.
Commissioner Luiken looked at slide 2, "Mission and Core
Services":
"Keep Alaska Moving through service and
infrastructure."
Core Services:
Design, engineer, and manage construction of
transportation infrastructure and facilities
Maintenance and operations of the state
transportation systems
Measurement standards/commercial vehicle
enforcement
Commissioner Luiken explained slide 3, "Priorities":
Live within our means
Take care of what we have
Operate and maintain safe and reliable roads, airports,
ferries and facilities
Ensure Alaska has the transportation infrastructure
necessary to grow the economy
Develop and implement efficiencies in both the
operating and capital budgets
Commissioner Luiken looked at slide 4, "Statutory
Requirements":
• AS 44.42 Department of Transportation and Public
Facilities
• AS 44.68.010 Use of State-owned Vehicles
• AS 44.68.210 Highway Equipment Working Capital Fund
• AS 35 Public Buildings, Works, and Improvements
• AS 19 Highways and Ferries
• AS 19.10 State Highway System
• AS 19.10.300 Commercial Motor Vehicle Requirements
• AS 19.25 Utilities, Advertising, Encroachment and
Memorials
• AS 19.65 Alaska Marine Highway System
• AS 19.65.050 Alaska Marine Highway System Fund and
Budget
• AS 19.75 Knik Arm Bridge and Toll Authority
• AS 2 Aeronautics
Commissioner Luiken highlighted slide 5, "DOT/PF Assets":
• 3,180 full time positions
• 5,619 center line miles of roads/highways
• 79 Maintenance Stations
• 249 State Airports
• 2 International Airports
• 720 Facilities (4 million + sq. ft.)
• 11 Ferries
• 35 Ferry Terminals
• 22 Harbors
• 810 State Owned Bridges
• 7 Weigh Stations
Co-Chair Neuman queried the cost per mile of the maintenance
the assets. He also wondered the total miles that the ferry
system and airport operate. Commissioner Luiken agreed to
provide that information.
Commissioner Luiken looked at slide 6, "Organization." He
stated that there would be a slide that showed that DOT/PF
was a matrixed organization with multiple statewide
functions. The department covered measurements and
standards; program development of the long range strategic
plans; administration; state equipment fleet; statewide
engineering; facilities; statewide aviation; and the marine
highway system. He stated that the department served three
regions: northern, central, and south coastal.
Commissioner Luiken highlighted slide 7, "DOT/PF Structure
Overview":
Commissioner's Office - Marc Luiken, Commissioner
• 20 fulltime budgeted positions
• .6 percent of DOTandPF's FY2016 Endorsed
Operating Budget Request
• $3,522.6 (all sources)
• Department leadership, contracting appeals,
transportation and management security
• Challenges - Reducing department costs while
meeting Alaskan's needs for safe reliable
transportation, Moving Ahead for Progress 21st
Century (MAP21), federal oversight
Administrative Services Division -Mary Siroky, Director
• 95 fulltime budgeted positions
• 2.7 percent of DOTandPF's FY2016 Endorsed
Operating Budget Request
• $16,894.2 (all sources)
• Finance, budget, human resources, procurement,
internal review, equal employment and civil
rights, building management
• Challenges implementation of the new
accounting system; and increased federal financial
reporting requirements
Commissioner Luiken looked at slide 8, "DOT/PF Structure
Overview":
Program Development - Jeff Ottesen, Director
• 34 fulltime budgeted positions
• .7 percent of DOTandPF's FY2016 Endorsed
Operating Budget Request
• $4,630.0 (all sources)
• Statewide Transportation Improvement Program
(STIP), federalaid highway agreements, long range
plan transportation plan, capital budget,
Strategic Highway Safety Plan, Alaska Highway
Safety Office, community transit program
• Challenges - increased federal oversight and
requirements (Transportation Asset Management,
Performance Measures), shifting of federal funds
serving local roads and lesser highways to major
highways (National Highway System)
Information Systems and Services Division - Bill Anker,
Director
• 70 fulltime budgeted positions
• 1.6 percent of DOT and PF's FY2016 Endorsed
Operating Budget Request
• $9,899.8 (all sources)
• System oversight, network support, security,
application development and management, client
support services, server and database
administration, enterprise geospatial data system
maintenance and reporting
• Challengesimplementation and maintenance of
secure and reliable systems that maximize
performance; consolidating disparate systems to
minimize cost
Commissioner Luiken highlighted slide 9, "DOT/PF Structure
Overview":
Statewide Design and Engineering Services - Roger
Healy, Chief Engineer
• 78 full and parttime budgeted positions
• 2.2 percent of DOT/PF's FY2016 Endorsed
Operating Budget Request
• $13,818.7 budget request (all sources)
• Major division responsibilities are: bridge
design, design and construction standards, asset
management, materials and quality assurance,
National Environmental Policy Act (NEPA) review
and approval
• Challenges - implementing changes required by
MAP21, assuming federal responsibility for NEPA
decisions, transitioning department to an
asset/performance management agency, recruiting
and retaining technical staff, continuous
improvements through streamlining processes
Public Facilities - David Kemp, Chief
• 31 fulltime budgeted positions
• .7 percent of DOTandPF's FY2016 Endorsed
Operating Budget Request
• $4,642.9 budget request (all sources)
• Project management for new construction and
deferred maintenance for DOTandPF and other
departments; Alaska Energy Savings Performance
Program
• Challenges - range in complexity of the work;
recruitment and retention
Commissioner Luiken looked at slide 10, "DOT/PF Structure
Overview":
Measurement Standards and Commercial Vehicle
Enforcement - Dan Smith, Director
• 61 fulltime budgeted positions
• 1.1 percent of DOTandPF's FY2016 Endorsed
Operating Budget Request
• $6,611.0 budget request (all sources)
• Commercial vehicle inspections, oversize
permitting, weigh stations, weights and measuring
device certification, metrology lab
• Challenges - attracting and retaining commercial
vehicle inspectors, generating permit changes
after hours, increasing federal regulations
Statewide Equipment Fleet - Diana Rotkis, Fleet Manager
• 164 full and parttime budgeted positions
• 5.4 percent of DOTandPF's FY2016 Endorsed
Operating Budget Request
• $34,040.6 budget request (all sources)
• Management of Highway Working Capital Equipment
Fund (HWCF), credit card fuel process, fleet
maintenance, parts and repairs, fleet procurement,
fleet sales
• Challenges increased cost of equipment and
diagnostics; and training and attracting a skilled
maintenance workforce in rural Alaska
Commissioner Luiken addressed slide 11, "DOT/PF Structure
Overview":
Statewide Aviation - John Binder, Deputy Commissioner
• 24 fulltime budgeted positions
• .5 percent of DOTandPF's FY2016 Endorsed
Operating Budget Request
• $3,214.0 budget request (all sources)
• Aviation leasing, planning, capital program
management, carrier compliance
• Challenges - increasing federal regulations,
lack of geospatial information data, landuse
compliance, airport obstructions, wildlife
management
AK International Airport System (AIAS)-John Binder,
Exec. Dir. /Deputy Commissioner
• 478 full and parttime budgeted positions
• 13.3 percent of DOTandPF's FY2016 Endorsed
Operating Budget Request
• $83,402.8 budget request (all sources)
• Composed of Ted Steven's and Fairbanks
International Airports
• Operate the system office, maintain the runways,
float ponds, fields and equipment, manage the
airside leases, manage the airport terminals and
concessions, airport police and fire department.
• Challenges - International cargo mode shifts;
competitor airports, carrier fleet mix changes,
global economy
Commissioner Luiken looked at slide 12, "DOT/PF Structure
Overview":
Alaska Marine Highway System John Falvey, General
Manager
• 928 fulltime and parttime budgeted positions
• 25.6 percent of DOTandPF's FY2016 Endorsed
Operating Budget Request
• $160,673.4 budget request (all sources)
• Provides management, reservation and marketing
for the system, oversees the operation of the
fleet and construction and repair of 11 vessels
and 35 Terminals. Operates 3,500 route miles
serving 35 ports of call
• Challenges - maintaining aging vessels requiring
increased repair and refurbishment; adhering to
yearly published schedules
Central Region - Robert Campbell, Regional Director
• 600 full and parttime budgeted positions
• 17.6 percent of DOTandPF's FY2016 Endorsed
Operating Budget Request
• $110,877.6 budget request (all sources)
• Planning; design and engineering; construction;
facilities, highways, aviation maintenance and
operation; traffic signal maintenance; Whittier
Tunnel; Knik Arm Crossing
• Challenges - disasters, urban congestion, the
public's expectations particularly for winter
maintenance, recruitment and retention of
equipment operators in rural areas
Commissioner Luiken highlighted slide 12, "DOT/PF Structure
Overview":
Northern Region - Robert Campbell, Acting Regional
Director
• 708 full and parttime budgeted positions
• 19.9 percent of DOTandPF's FY2016 Endorsed
Operating Budget Request
• $124,737.1 budget request (all sources)
• Planning; design and engineering; construction;
facilities, highways and aviation maintenance and
operation; traffic signal maintenance
• Challenges - disasters, meeting the public's
expectations particularly for winter maintenance,
recruitment and retention of equipment operators
in rural areas
Southcoast Region - Vacant Regional, Director
• 276 full and parttime budgeted positions
• 8.2 percent of DOTandPF's FY2016 Endorsed
Operating Budget Request
• $51,292.3 budget request (all sources)
• Planning; design and engineering; construction;
facilities, highways and aviation maintenance and
operation; traffic signal maintenance
• Challenges - disasters, meeting the public's
expectations particularly for winter maintenance,
recruitment and retention of equipment operators
in rural areas
1:40:23 PM
Commissioner Luiken discussed slide 14, "Fabric of DOT/PF."
He shared that he wanted to ensure that the department was a
unified force across the state.
Co-Chair Neuman asked for an explanation of the chart.
Commissioner Luiken replied that the horizontal lines were
the agencies that worked across the entire state. Their
input impacted every region and department personnel. The
vertical lines represented the various divisions, so they
were either function or geographically focused.
Co-Chair Neuman surmised that everyone worked together.
Commissioner Luiken agreed.
Vice-Chair Saddler stated that the chart showed that every
function of DOT/PF applied across the state. Commissioner
Luiken agreed.
Commissioner Luiken highlighted slide 15, "What did we
Accomplish in 2014?"
Operated and maintained safe and reliable roads,
airports, ferries and facilities
Operational efficiencies
• Use recapped tires Bethel pilot foreman
• Closed gift shops Everyday lean innovations
Organizational efficiencies
• Information Systems and Services Division
• Regional boundary change = Southcoast Region
Co-Chair Neuman wondered how Alaska compared on the national
level to deaths and accidents on the roads. Commissioner
Luiken replied that there was a recent downturn in Alaska's
fatal crashes and major accidents. He agreed to provide
further information.
1:44:32 PM
MARY SIROKY, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES,
furthered that there was a fatality measurement as a
performance measure. She shared that the number of
fatalities in the state was low compared to the other
states, but she did not have the per capita comparison. She
agreed to provide that information.
Co-Chair Neuman remarked that some roads were designated as
"highway safety zones", because of the number of accidents
and traffic in that location. He felt that those zones
should be on the top of the list for improvements and
expansion. Ms. Siroky agreed, and furthered that those
locations also had increased traffic fines.
Commissioner Luiken shared that there were some statistics
at the end of the presentation that highlighted some of
those concerns.
Representative Gara shared that at one time there were signs
that encouraged drivers to move out of the way if they were
delaying five or more vehicles. He felt that there should be
more signs like that from Talkeetna to Sterling. He remarked
that there were some accidents during the summer, because
the cars were attempting to pass up to eight cars at once.
He wanted further examination of the usefulness of those
signs. Commissioner Luiken agreed, and explained that it was
a dual effort between DOT/PF and the Department of Public
Safety (DPS)
Representative Guttenberg remarked that DOT/PF received
federal safety money, and the department could determine
where the money should be spent, without public input. He
shared that the nearest intersection to his house was about
1.5 miles from his home. He shared that DOT/PF redid the
intersection, and made it worse than the original. He shared
that the intersection saw the worst accident in thirty
years. He shared that many of the accidents at that
intersection did not get reported, because the individuals
personally deal with the accidents. He queried the failsafe
efforts. He wondered how an individual could reach DOT/PF
with suggestions. Commissioner Luiken replied that safety
enhancements are incorporated based on data. Further, other
safety features would be engineered into the facility or
road. He agreed to look into the specific intersection, and
provide more information.
Representative Guttenberg remarked that his community did
not want the installed rumble chips.
1:50:20 PM
Co-Chair Neuman asked that questions for specific
intersections and roads to the end of the presentation.
Co-Chair Thompson shared that the northern region of
Fairbanks used a new form of liquid to melt the ice on the
road. He stated that the liquid froze, and the borough
noticed some corrosion because of the chemical. He wondered
why the change occurred. Commissioner Luiken agreed to
provide that information.
Commissioner Luiken displayed slide 16, "DOT/PF New Regional
Boundaries; Northern, Central, Southcoast." He stated that
the department had recently adjusted the regional
boundaries, because there was growth in the central and
northern regions. The boundary adjustments were meant to
balance the workload of the department.
Representative Edgmon shared that the reorganizational plan
was not well-received in southwest Alaska, because it
required a longer distance.
Co-Chair Neuman queried the reason and expectations of the
boundary changes. Commissioner Luiken replied that he
expected more work for southeast Alaska, because the
population was shrinking in that part of the state. He would
be held accountable, if there was a difficulty in providing
services as a result of the change.
Co-Chair Neuman saw an advantage to the change being the
incorporated ferry system.
Representative Guttenberg felt that there were naturally
places that could line up to the borough boundaries, like on
the Parks Highway. He wondered why the new boundaries did
not line up with communities. Commissioner Luiken agreed to
provide that information
1:55:02 PM
Commissioner Luiken highlighted slide 17, "Where are We
Headed?"
Organizing to meet budget challenges
Consolidations and efficiencies
Minimize service level impact
Institute sustainable changes
Continue to enhance legislative and public
communications
Exploring revenue generating opportunities
Co-Chair Neuman queried the revenue generating
opportunities. Commissioner Luiken responded that the
department already had a 4.5 percent increase for the marine
highway system.
Commissioner Luiken addressed slide 18, "FY2016 Proposed Fee
Increases":
AMHS Fare Increase
• 4.5 percent = $1.8M
Deadhorse Landing Fees
• $285.0 in FY2016
• $570.0 in FY2017
Whittier Tunnel Fare increase 10 percent
Co-Chair Neuman remarked that Deadhorse landing fees would
be considered part of the operating costs, and would be 35
percent of their tax deductions. He wondered if that
deduction was considered in the presentation. Commissioner
Luiken responded that the department had not figured it into
the calculations. He stated that, by federal mandate, any
money that was generated at an airport must be reinvested in
that facility.
Representative Gara remarked that the Deadhorse road was
built to help facilitate the oil and gas companies. He
wondered if the state paid for all of the maintenance and
upgrades to that road. He also queried the user fee, and the
difference between the user fee and the cost to maintain and
upgrade that road. Commissioner Luiken did not understand
the question.
Representative Gara clarified that he would like to know
about the haul road. Commissioner Luiken replied that road
was part of the National Highway System, so it qualified for
federal funding like many other roads in the state.
Representative Gara declared that federal funding did not
cover the entire cost of the road. He wondered what portion
was state funding, and if there was any state compensation
through user fees. Ms. Siroky replied that there were no
user fees on the entire road. She explained that the only
road in the state with user fees was the Klondike Highway to
Whitehorse on ore hauling on that road.
Representative Gara queried the annual cost to the state for
the haul road. Commissioner Luiken agreed to provide that
information.
Representative Kawasaki wondered if the marine highway fare
increase was 4.5 percent for the entire system. Commissioner
Luiken replied that it was mostly a 4.5 percent, but
excluded the top 20 percent of the system fares. The
increase brought the other fares closer to the higher rate.
He furthered that he would address the ideas about the
tariff study.
Representative Kawasaki asked how a bar on the marine
highway could lose money. Ms. Siroky replied that bartenders
were paid a greater salary than a standard bartender. The
beverage prices had never been increased to cover that cost.
2:01:33 PM
Co-Chair Neuman queried the anticipated savings by
eliminating the bars on the ferry. Ms. Siroky replied that
there would be a $700,000 savings.
Representative Munoz noted that there would be a 39 week
service decrease to the ferry system, and well as a fare
increase. She queried the impact of the loss service.
Commissioner Luiken replied that there will be that much
less service to the various ports of call across the system.
He stated that the 39 weeks was out of the total system.
Representative Munoz surmised that the fares were increased
and the service was reduced. Commissioner Luiken replied in
the affirmative.
Co-Chair Thompson noted that beer and wine would still be
available in the ferry cafeterias. He expressed caution,
because the cafeteria workers would be required to receive
food and alcohol handlers permits, which may increase costs
in the cafeterias.
Commissioner Luiken highlighted slide 19, "Challenges":
Balancing budget against public needs, changing
conditions and expectations
Moving Ahead for Progress 21st Century Act (MAP-21)
Growing population in South Central
Co-Chair Neuman wondered if "South Central" referred to the
Mat-Su. Commissioner Luiken replied that "South Central"
referred to Anchorage and Mat-Su.
Commissioner Luiken continued to discuss slide 19:
Federal Oversight
• Environmental
• Processes
• Financial
• Reporting requirements
2:05:38 PM
Co-Chair Thompson wondered if there would be an increase to
the department. Ms. Siroky replied that the department had
an increment request for receipts for slightly over $1.2
million. She explained that there were four positions in the
management plan from the Office of Management and Budget
(OMB) that would also fund two new attorneys in the
Department of Law. She stressed that there would be an
increase to the budget, but the GF would not see any impact.
Commissioner Luiken furthered that the amount of time saved
would allow the department to address projects at an earlier
date, which would provide cost savings.
Representative Munoz queried the status of the
environmental work on the Juneau Access Project.
Commissioner Luiken agreed to provide that information by
the end of the current week.
Representative Munoz wondered if the was a cost analysis,
if the environmental work on Juneau Access were to
discontinue. Commissioner Luiken replied that there would be
a possible repayment to the federal government of $27
million.
Representative Munoz wondered how much of the ferry
reduction service was targeted at the Lynn Canal. Ms. Siroky
replied that the reductions were spread across the entire
state. She agreed to provide further information.
Ms. Siroky addressed slide 20, "Operating Budget by Core
Services; FY2015 Management Plan to FY2016 Adjusted Base
Comparison." She stated that the salary and health increases
were reflected in the slide. She noted a small reduction for
a one-time increment.
Co-Chair Neuman wondered if the slide referred to the
current budget request. Ms. Siroky responded in the
affirmative.
Representative Wilson noted that there would not be a
reduction in DOT/PF, but rather an increase of $4 million.
Ms. Siroky replied that the slide was a comparison of the
management plan to the adjusted base.
Ms. Siroky discussed slide 21, "Operating Budget by Core
Services FY2016 Adjusted Base to FY2016 Governor's Endorsed
Budget Request Comparison." She pointed out the increased GF
budget requests. The slide displayed the collected funds for
highway safety corridors.
Ms. Siroky highlighted slide 22, "FY2016 Governor Endorsed
Operating Budget Changes." She noted some positions that
would be eliminated, as well as some vehicles that would be
incorporated into a vehicle pool.
Ms. Siroky discussed slide 23, "Reductions":
Administration and Support RDU
• Positions (3 PFT, 2 PPT), travel, supplies,
services, use vehicle pools
Highways and Aviation - maintenance and operations
• 3 PFT positions Bethel airport- reduce
operations to 5am to 10pm
• Winter maintenance - reduce 2 PFT positions,
overtime, commodities
• Will use service levels to set maintenance
priorities
• Use federal preservation funding when allowable
to do routine maintenance
Design and Construction RDU
• Positions (1 PFT, 1 PPT, 4 NP) travel, training,
services
Alaska Marine Highway System
• Eliminate 39 weeks of service
• Bars
2:14:46 PM
Representative Gara looked at slide 21, and noted the less
than 1 percent change between the FY 16 adjusted base and
the new endorsed budget. He wondered why this was an
insignificant reduction. Ms. Siroky replied that there was
an $11 million GF reduction, and the increases that offset
the $11 million was due to the International Airports that
brought important programs that would save money in the
long-term.
Ms. Siroky continued to discuss slide 23. She pointed out
that the maintenance and operations funding for the highways
and aviation had not seen an increase for three fiscal
years. There was an increase of approximately 290 lane
miles, but the costs did not increase.
Vice-Chair Saddler queried the meaning of "weeks of
service." Ms. Siroky replied that it was the total weeks of
service. There were originally 440 weeks of service.
Vice-Chair Saddler remarked that there were only 52 weeks in
a year, so he wanted further explanation. Ms. Siroky replied
that it was the total number of weeks that boats were
operating.
Ms. Siroky looked at slide 24, "FY2016 Governor's Endorsed
Budget" and slide 25, "FY2016 Governor's Endorsed Operating
Budget Funding Sources." She stated that there were 14 fund
sources.
Ms. Siroky addressed slide 26, "FY2016 General Fund
Governor's Endorsed Operating Budget by Allocations." The
slide compared the funding between the major operating
allocations with the marine highway system.
Ms. Siroky looked at slide 27, "Appropriations within the
Department of Transportation and Public Facilities" and
slide 28, "Appropriations within the Department of
Transportation and Public Facilities." The slides
represented what would occur with GF over time.
Co-Chair Neuman asked for a definition of "RDU." Ms. Siroky
responded that "RDU" meant results delivery unit.
Ms. Siroky addressed slide 29, "Department of Transportation
and Public Facilities Share of Total Agency Operations":
The department's GF budget grew by $65.2 million
between FY07 and the FY16 Governor's 1/22 GF Request
an average annual growth rate of 2.4 percent.
The department's total FY16 Governor's 1/22 GF budget
request equals $1,018 per resident worker
2:21:01 PM
Ms. Siroky highlighted slide 30, "FY2016 Governor's Endorsed
Capital Budget." She noted that the current request was
smaller than the few years prior. She remarked that there
was a GF match and money for municipal grants. There was
$137 million in federal and other fund sources, and
approximately $891 million for surface transportation. She
also stated that there was $8 million for deferred
maintenance.
Ms. Siroky discussed slide 31, "Measures and Results." She
stated that the department would provide better performance
measures the following year. The graphs address traffic
fatalities, and she noted that FY 13 showed a positive
result. She shared that FY 14 was not a good year for
traffic fatalities. She remarked that in 2004, there was 106
fatalities, so the department had shown a positive outcome
over time. She added that the number of alcohol related
fatalities had also reduced. She looked at the graph for the
National Highway System miles, which referred to the roads
that met the National Highway System miles statistics. She
stated that the department would never reach 100 percent for
meeting the national standards.
Ms. Siroky addressed slide 32, "DOT/PF Information Sources",
which displayed how to gain more information on DOT/PF.
Representative Wilson wondered how much GF would be required
to finish the two new weigh stations. She added that she did
not have a problem if the stations were never completed. She
remarked that there was no recommendation for employees to
operate those weigh stations. She remarked that both Fox and
Esther had weigh stations that were not fully operational.
Ms. Siroky agreed to provide further information.
Representative Kawasaki wondered why the agency had 3180
full-time employees, and there were only recommended
personnel cuts. Ms. Siroky replied that DOT/PF still had
large capital projects that would be moving through design
and construction. She stressed that it took the department
two to ten years to bring capital projects through the
system.
Representative Kawasaki remarked that there were 290
additional line miles, but the budget remained relatively
flat. He felt that there would be additional maintenance and
operations later. He queried the wisdom of adding roads that
could potentially remain unfunded.
2:26:07 PM
Representative Gara remarked that the vulnerable individuals
like children and seniors should receive the least budget
reductions. He wondered what a 2 percent budget cut would
look like, without cutting safety. Commissioner Luiken
agreed to provide that information.
Co-Chair Neuman stressed that adding the lane miles makes
the roads safer. Commissioner Luiken agreed with that
summation. He furthered that DOT/PF was attempting the most
effective efficiency.
Representative Wilson wondered if there was a cost analysis
for each proposed road expansion. Ms. Siroky replied that
there were some project descriptions.
Co-Chair Neuman felt that capital projects would allow for
job opportunities.
Vice-Chair Saddler queried the break out of the costs to the
department per vehicle mile traveled versus the marine
highway. Ms. Siroky agreed to provide that information.
Co-Chair Neuman stated that Co-Chair Thompson was in charge
of the DOT/PF budget.
2:31:32 PM
AT EASE
2:33:34 PM
RECONVENED
^FY 16 BUDGET OVERVIEW: DEPARTMENT OF CORRECTIONS
2:33:59 PM
RON TAYLOR, COMMISSIONER, DEPARTMENT OF CORRECTIONS,
introduced himself.
REMOND HENDERSON, DEPUTY COMMISSIONER, DEPARTMENT OF
CORRECTIONS, introduced himself.
Commissioner Taylor displayed the PowerPoint presentation,
"Department of Corrections Overview" (copy on file).
Commissioner Taylor highlighted slide 1, "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 Taylor highlighted slide 2, "Organizational
Structure," which outlined the full organizational
structure of the department.
Commissioner Taylor addressed slide 3, "Corrections
Comparison FY2015 Management Plan to FY2016 Adjusted Base."
He shared that the Department of Corrections (DOC) was
currently waiting to fill the vacant Population Management
deputy commissioner, and the institutional director
positions.
Mr. Henderson displayed slide 4, "Corrections Comparison
FY2016 Adjusted Base to FY2016 Governor's Request." The
slide outlined the changes from the 2015 management plan to
the 2016 adjusted base. That change referred to the 2016
salary adjustments, the health insurance, and working rate
reductions which totaled approximately $2.1 million.
Mr. Henderson discussed slide 5, "FY2016 Summary of Changes
(continued)." The page showed the FY 16 adjusted base to
the governor's request. He remarked that the overall
reduction was $17.895 million to the FY 16 adjusted base,
which was a 5.3 percent reduction. He explained the
reductions ($thousands):
Salary and Health Insurance adjustments: $2,146.7
Salary adjustments: $2,571.5
Health insurance and working reserve: ($424.8)
MH Trust, Reverse One Time Items: ($475.8)
Mental Health Trust Recommendations: $506.9
Mental Health Staff Training: $25.0
Assess, Plan, Identify, and Coordinate re-entry
project: $260.0
Rural Re-entry and fetal alcohol syndrome
education pilot program: $120.0
Research Analyst: $101.9
Mr. Henderson highlighted slide 6, "FY2016 Summary of
Changes (continued) ($thousands)":
Reduce Current Level of Services: ($17,236.6)
Fund change of PFD Criminal Funds from General
Funds: ($9,534.5) UGF
Fund Change of PFD Criminal Funds from General
Funds: 9,534.5 DGF
2:39:44 PM
Co-Chair Neuman asked for further explanation of the fund
changes in the permanent fund division. Mr. Henderson
replied that there was a letter from Department of Revenue
(DOR) that identified the available funds in the permanent
fund criminal funds. He explained that DOC did not have
authority to receive the amount of funds available. There
was $9.5 million available in the fund, so DOC took a
reduction on GF.
Co-Chair Neuman wondered why DOC did not have previous
authority. Mr. Henderson replied that DOC had previous
authority, but did not have authority to receive all of the
funds.
Representative Gara wondered if the funds were used to fund
other items, or if the money remained in the permanent
fund. Mr. Henderson replied that he believed that the funds
did not go toward anything else in the meantime.
Co-Chair Neuman wondered where the criminal funds would be
used. Mr. Henderson replied that the funds would be used to
fund the operations of the institutions.
Co-Chair Neuman queried the previous use of the funds. Mr.
Henderson replied that they were used for the same purpose,
but there were more funds available.
Mr. Henderson continued to discuss slide 6:
Unallocated Reduction: ($3,925.0) UGF
Reduction of GF in anticipation of Medicaid Expansion:
($4,108.2) UGF
Eliminate Regional and Community Jail contracts:
($9,203.4) UGF
Phase out of minimum housing at PCC/transition to
supervised release: ($1,514.8) UGF
Phase out of minimum housing at PCC/transition to
supervised release $1,514.8 UGF
2:42:33 PM
Co-Chair Neuman asked how DOC had a zero vacancy factor.
Mr. Henderson replied that there was a budgeted zero
vacancy factor in institutions.
Commissioner Taylor furthered that the zero vacancy factor
also covered some of the overtime hours that were utilized
in DOC.
Representative Gara appreciated the work to rehabilitate
individuals, but felt that the zero vacancy factor did not
reflect a significant cut in state spending. Commissioner
Taylor replied that it would impact the amount of dollars
available for overtime.
Co-Chair Neuman felt that Representative Edgmon should
examine that issue in subcommittee.
Mr. Henderson explained that there would be a $3 million GF
reduction in the DOC budget. He continued to discuss slide
6.
Co-Chair Neuman wanted more information about the impact of
anticipated Medicaid expansion. Mr. Henderson agreed to
provide that information.
2:45:46 PM
Representative Wilson wondered how money was saved by
reducing 20 unoccupied beds. Mr. Henderson replied that the
money was paid for the beds under a contractual agreement.
Representative Wilson asked if the beds were in a jail or a
halfway house. Mr. Henderson replied that the beds were in
the jails. He furthered that it was a part of the $3.9
million unallocated reductions.
Representative Wilson wondered how DOC would pay for
something that no person would occupy. Mr. Henderson
responded that the funding would be used for the community
regional centers. He stated that there was a contract for a
fixed number of beds within the contract.
Commissioner Taylor stated that the reduction was for the
Northstar Center in Fairbanks.
Representative Wilson understood that they were referring
to the halfway house. Commissioner Taylor agreed.
Representative Wilson stated that she understood why the
beds were not utilized. Commissioner Taylor explained that
the $3.9 million reduction was drafted before other
reductions were considered. The beds were removed as part
of what was proposed prior to December 13.
Co-Chair Thompson felt that the center may increase the
cost of beds. Commissioner Taylor replied that the 20
percent adjustment was based on a reflection of the actual
cost of the beds.
Co-Chair Neuman remarked that the slide was confusing, and
felt that he did not understand how the final reduction was
determined. Commissioner Taylor agreed to provide further
information.
Commissioner Taylor addressed slide 7, "Fiscal Year 2016
Operating Budget Request by Core Service." The slide showed
secure confinement, reformative programs, and supervised
release programs.
Commissioner Taylor looked at slide 8, "Fiscal Year 2016
Operating Budget Request by Fund Source." The slide showed
the total amount by fund source. He remarked that there
were very little federal funds requested.
Commissioner Taylor addressed slide 9, "Fiscal Year 2016
Operating Budget Request by Line Item." The slide looked
specifically at the budget request line items. He remarked
that the majority of the expenditures would go to personal
services.
Commissioner Taylor highlighted slide 10, "Fiscal Year 2016
Operating Position Allocations." He stated that there were
1871 total positions, and the majority of the positions
were correctional officers, followed by probation officers,
and the administrative staff for the central office;
institutions; probations and parole; and the parole board.
2:53:02 PM
Commissioner Taylor looked at slide 11, "Correctional
Facilities and Regional and Community Jails Locations." the
slide was a depiction of the locations of the correctional
facilities and regional jails in the state.
Commissioner Taylor addressed slide 12, "Cost of Care." He
remarked that the majority of the costs were inside the
institutions. He noted that health care was the greatest
cost driver, followed by statewide direct costs.
Co-Chair Neuman remarked that the average cost per inmate
was approximately $158,000 per year. He wondered the exact
cost per day. Commissioner Taylor replied with slide 12. He
looked at the total cost for FY 13, which was $153.67 per
inmate per day.
Co-Chair Neuman remarked that only 2.9 percent of the
department's budget was used for drug and alcohol programs.
He stressed that over 80 percent of the inmates had drug
and alcohol programs. He wondered why there was such a
small amount of money toward recidivism efforts.
Commissioner Taylor replied there was treatment inside the
institution. He understood that the costs of corrections
was greater than the cost to rehabilitate. He felt that
there was a shift in the current budget toward reducing
recidivism.
Co-Chair Neuman stressed that the cost to rehabilitate
would be much less than the cost of corrections. He felt
that DOC had showed positive efforts to rehabilitate
individuals. Commissioner Taylor stressed that, although
the individuals were receiving treatment, they were still
utilizing the bed space. There would still be institutional
costs with rehabilitation.
Co-Chair Neuman remarked that the 62 percent recidivism
rate must be reduced.
Representative Wilson wondered why the out-of-state cost
increased from $66 to $103, while it looked like the
instate institution costs saw a decrease. Commissioner
Taylor replied that the increase for out-of-state
incarceration was for the first quarter of the current
fiscal year. The rate was negotiated at a higher rate for
those three months.
Representative Wilson wondered if the rate was still $103.
Commissioner Taylor responded in the negative.
Representative Wilson surmised that the $103 would
decrease, but the inmates would also return to Alaska, so
the cost to those inmates would possibly increase.
Commissioner Taylor responded that facility costs were
fixed costs. Therefore, if more people filled the beds, the
average daily cost per inmate would decrease.
Representative Wilson asserted that the $142 per day
institutional cost may decrease slightly, but it may not
get as low as $103 per day. Commissioner Taylor replied in
the affirmative. The costs would still remain around $142
per day.
3:00:03 PM
Commissioner Taylor highlighted slide 14, "Core Service
Secure Confinement":
12 In-State Correctional Facilities with maximum bed
capacity of 5,224 beds
The average daily inmate population held within
these facilities for FY2014 was 5,038
15 contracts with local Regional and Community Jails -
157 beds
The average daily inmate population held within
these local jails for FY2014 was 80
Commissioner Taylor looked at slide 15, "Secure Confinement
Performance Measure Results." He stated that the
performance measures were conducted on each of the core
services. He stated that there were three escapes over the
past seven years. He noted that, since 2012, there were no
convictions for escape.
Mr. Henderson highlighted slide 16, "Secure Confinement
Performance Review Findings":
From a system-wide standpoint, the DOC is moderately
effective in meeting its objective of providing
effective secure confinement.
Secure confinement operations are provided in an
efficient manner.
The relatively high costs incurred are largely a
function of the unique characteristics of the
correctional system and the cost of providing services
in Alaska.
Efficiencies have been maximized in institutional
staffing to the point that additional reductions could
jeopardize achievement of the program's mission.
Commissioner Taylor discussed slide 17, "Core Service
Supervised Release":
13 Regional Adult Probation Offices
The average daily probationer/parolee population
during FY2014 was 6,171
8 Community Residential Centers - 711 beds, plus (108
per diem beds)
The average daily population for these beds
during FY2014 was 761
Electronic Monitoring operated in 6 communities with
capacity to support up to 386 offenders, increasing to
475 in FY2015
The average daily population for electronic
monitoring during FY2014 was 386
Commissioner Taylor addressed slide 18, "Supervised Release
Performance Measure Results." The slide showed that the
recidivism rate was currently 63.19 percent. He announced
that DOC wanted to continue to lower the recidivism rate.
Commissioner Taylor highlighted slide 19, "Supervised
Release Performance Measure Results." He stated that the
number of probationers and parolees were continuing to
successfully satisfy their court-ordered conditions of
release, to ensure their continued success in the
community.
Mr. Henderson looked at slide 20, "Supervised Release
Performance Review Findings":
From a system-wide standpoint the DOC is moderately
effective in providing supervised release.
The supervised release program operates with a high
level of efficiency.
Commissioner Taylor highlighted slide 21, "Core Service
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
Commissioner Taylor addressed slide 22, "Reformative
Program Performance Measure Results Substance Abuse
Treatment Programs." The slide depicted in the increased
number of people participating in a substance abuse
treatment program.
Commissioner Taylor highlighted slide 23, "Reformative
Program Performance Measure Results." The page looked at
the performance measure results for the sex offender
management programs. He shared that DOC continued to
provide polygraph and programming to a number of persons on
parole for sex offenses.
Commissioner Taylor addressed slide 24, "Reformative
Program Performance Measure Results Educational Programs."
He noted the decrease in 2012 to 2014, as there were new
standards for general education development (GED) testing.
He stated that there was work to move from a paper-based to
electronic testing system.
3:05:43 PM
Mr. Henderson looked at slide 25, "Reformative Programs
Performance Review Findings":
DOC's approach to developing reformative programming
is aggressive, its scope is comprehensive, and its
delivery is effective.
The delivery of reformative programs is highly
efficient.
Mr. Henderson stated that the final three slides were
prepared by the Legislative Finance Division (LFD). He
stated that the slides reflected an increase in the agency
share of total state operations, and an increase in DOC
funding. He stated that the increase was a result of the
new Goose Creek institution.
3:07:25 PM
Co-Chair Neuman wondered what changes that could be
expected in DOC. He had been exploring recidivism
reductions programs. Up to 40 percent of the inmates that
were in the DOC program were at the pre-sentence phase. He
felt that there may be an opportunity for voluntary
treatment for pre-sentence inmates. Commissioner Taylor
replied that there was an attempt to redesign the system.
He stressed that DOC must improve its dependence on
electronic monitoring.
Co-Chair Neuman wondered if electronic monitoring would be
used at residential centers. Commissioner Taylor responded
in the affirmative.
Vice-Chair Saddler looked at slide 22, and wondered if DOC
worked to encourage 12-Step programs to operate in all
facilities. Commissioner Taylor replied in the affirmative.
The department wanted to examine an array of programs for
the institutions.
3:13:42 PM
Vice-Chair Saddler queried the definition of RSAT and
LSSAT, and a general idea of a community-based substance
abuse treatment program. Commissioner Taylor replied that
the LSSAT program was the "Life Skills Substance Abuse
Treatment" program. It was 3-month outpatient program
inside the facility. The RSAT program was a "Residential
Substance Abuse Treatment" program, which was a minimum of
6 months in the institution. The community-based programs
were programs that were provided for after care and
programming in a number of communities to support the
persons getting released into probation and parole.
Vice-Chair Saddler wondered where the 12-Step programs fell
into those other programs. Commissioner Taylor replied that
the 12-Step programs were voluntary programs, but were not
a cost for substance abuse treatment programs. He agreed to
provide more information.
Representative Munoz wondered why the Medicaid expansion
would only cover $4 million of the health care costs. She
wondered if there was a way to increase the coverage. Mr.
Henderson replied that the replied the DOC Health Care
Director could provide a detailed response. He explained
that DOC had pulled the invoices of the individuals within
the institutions that were hospitalized for more than 24
hours, which totaled approximately $8 million. He shared
that the $4.1 million was a benchmark for reimbursement.
Representative Munoz surmised that there would be no
Medicaid reimbursement for the services provided within the
institution. Mr. Henderson replied in the affirmative and
stated that the reimbursement would be considered "direct
billing."
Representative Munoz shared that she had worked to create a
video conferencing opportunities for individuals to
communicate with families. She shared that it was a
successful program. She remarked that there was a recent
change in policy to limit the videoconferencing between
clients and attorneys. She queried the reason for the
change in policy. She encouraged the reinstatement of the
program. Commissioner Taylor agreed to examine that
policy. He shared that the change may be related to the
number of increased hearings and requests for telephonic or
video-conferenced hearings.
3:18:03 PM
Representative Guttenberg queried the flexibility within
the budget to prioritize new programs. Commissioner Taylor
replied that there was some ability to prioritize, but he
stressed that there was a focus on ensuring that the
programming was directly related to the risks and needs of
those in custody.
Representative Guttenberg remarked that there should not be
a large rise in inmates. He wondered if the funds would be
shifted to programs that had direct impact from prison
population increases. Commissioner Taylor replied that the
funds could not be shifted to capture the dramatic
increases in inmate population. The funding would be
dedicated to specific services.
Representative Guttenberg asked if the individuals were
monitored in the programs. Commissioner Taylor replied that
there was an attempt to develop one recidivism reduction
plans.
Representative Guttenberg asked how those individuals had
follow up for housing and employment post-incarceration.
Commissioner Taylor replied that the probation officer
would follow up on the individuals that were on probation
and parole. He furthered that there was current work to
create reentry centers and community support for those not
on probation or parole.
Representative Guttenberg wondered if the department
tracked the difference between the recidivism rates of
those who were on parole and those who were not on parole.
Commissioner Taylor replied that there was not a separation
of probation and parole.
Representative Wilson remarked that queried the definition
of "GF PR authority." Mr. Henderson replied that it was the
GF authority for receipts. There were fees for the
electronic monitoring devices.
Representative Wilson wondered if the ankle monitors were
fully utilized. Commissioner Taylor responded that the
department was working to fully utilize the ankle monitor
capacity. He explained that the request reflected the
department's authority and ability to collect.
Representative Gara wondered if Alaska was the only state
that did not allow food stamps for felons. He asked if
there was work to allow felons to receive food stamps.
Commissioner Taylor replied that the Criminal Justice
Commission was examining that issue. He did not know if
there was any relation between food stamps allowance and
recidivism rates.
3:24:13 PM
Representative Gara wondered if the commission was 100
percent federally funded. Commissioner Taylor replied that
he did not know.
3:24:20 PM
Vice-Chair Saddler noted that there was a challenge in
reducing recidivism rates, and wondered if it was because
of not identifying the right tools or knowing the right
tools with an inability for implementation. Commissioner
Taylor felt that it was a combination of the two notions.
There were two separate committees that were working toward
that balance.
Representative Gattis looked at slide 17. She wondered what
would happen if there was a possibility to increase beyond
475. She felt that there should be an increase in
opportunities in order to decrease the cost of
incarceration. Commissioner Taylor replied that it was
possible to increase the number, but there must be staffing
and resources to support the increase.
Representative Gattis wondered if private companies
conducting the monitoring. Commissioner Taylor replied in
the negative. He stated that DOC was the monitoring entity.
Representative Pruitt shared that he knew a correctional
officer that felt there were some inefficiencies between
DOC and the Department of Public Safety (DPS) when
transporting prisoners. He wondered if there was a way to
bridge the gap between the two departments. Commissioner
Taylor agreed to examine that issue further.
Representative Pruitt wondered if there were specific
restrictions that the legislature placed that prevented
people from integrating back into society. He remarked that
there were some statutes placed to protect the public that
may have caused some burdens on those individuals that were
released back into society. He wondered if there needed to
make changes to some limiting statutes. Commissioner Taylor
stated that there was a list of collateral consequences
online, and he would be happy to provide that information.
HB 72 was HEARD and HELD in committee for further
consideration.
HB 73 was HEARD and HELD in committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| DOT&PF Winter Maintenance Priority Levels.pdf |
HFIN 2/9/2015 1:30:00 PM |
|
| FINAL House Finance Committee Presentation Feb 9 2015.pdf |
HFIN 2/9/2015 1:30:00 PM |
|
| 02092015 H-Finance Committee - DOC Budget Overview.pdf |
HFIN 2/9/2015 1:30:00 PM |