Legislature(2007 - 2008)HOUSE FINANCE 519
02/07/2008 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB313 | |
| HB343 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 313 | TELECONFERENCED | |
| *+ | HB 343 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE BILL NO. 343
"An Act making supplemental appropriations, capital
appropriations, reappropriations, and other
appropriations; amending certain appropriations;
ratifying certain expenditures; making appropriations
to capitalize funds; and providing for an effective
date."
KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
thanked the committee for hearing the bill.
2:45:31 PM
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
Section 7-9 Foster Care Base Rate
Increased costs in the amount of $656.3 due to
increase in Protective Services Reports received.
Increased collections of Supplemental Security
Income (SSI) and Child Support Services Division
(CSSD) receipts $800.0. Collections attached to
IV-E eligible children are reimbursed to the
federal government; other funds are built into the
Foster Care Base Rate payments. Approximate 2,000
children are in foster care at any given time. The
Foster Care Base Rate is $24.13 per day or $724
per month.
$1,456.3
LAURA BAKER, ACTING DEPUTY DIRECTOR, FINANCE AND
ACCOUNTABILITY, DEPARTMENT OF HEALTH AND SOCIAL SERVICES,
spoke regarding the Foster Care Base Rate. She said an
increase in foster parenting and foster children in care has
resulted in a need for increased funds.
2:47:01 PM
Representative Hawker thought the FY 09 budget request
should be looked at to reflect the increased need. Ms.
Baker agreed.
Section 7-9 Foster Care Special Needs
Increased costs. An estimated 240 more children
will require special needs funding support for
their foster care this year. Approximately 1,800
children are eligible to receive special needs
funds at an average cost of $240.00 per month.
$699.8
Ms. Baker addressed Foster Care Special Needs at $622.8
General Fund (GF) with a $77.0 federal match, which relates
to a case load increase.
2:47:55 PM
Representative Hawker referred to the FY 09 budget request
for $1.2 million in interagency receipts and no additional
GF and wondered if that should be reconciled. Ms. Baker
explained that the $1.2 million in FY 09 relates to child
care costs for foster care children connected to the
Childcare Development Fund. These are different cost issues.
Representative Hawker asked if the Department was requesting
$622.8 in General Funds that won't be needed in FY 09. Ms.
Baker said she would follow up on that.
2:48:55 PM
Section 7-9 Medicaid Services
ProShare Disallowance. ProShare was disallowed by
the U.S. Department of Health and Human Services
Departmental Appeals Board in July 2007. Before
ProShare was begun, the department funded these
grants with general funds. Supplemental funding is
needed to continue the grants to community service
providers.
$17,062.3
Ms. Baker addressed the ProShare disallowance. The
Department worked to maximize federal revenue over the past
years and was able to save a total of $40 million for two
years of that time. The federal government decided that the
Department cannot use the financing mechanism which results
in a GF increase of $17,062.3.
Representative Gara asked for clarification regarding the
foster care base rate. He asked if the base rate was the
per-day reimbursement rate for foster families. Ms. Baker
answered in the affirmative. Representative Gara clarified
that the rate had increased in 1999 to reflect the 1993
poverty level. He asked about the proposed rates for FY 09.
Ms. Baker said the rates were still being discussed.
Representative Gara wondered if the supplemental amount
would accommodate that change. Ms. Baker answered that the
amount did not accommodate any change but makes up for an
increased case load and reflected a component of the base
services.
2:50:54 PM
Section 7-9 Nome Youth Facility
Increased operating costs. The facility is fully
staffed and cannot cover the budgeted 4% vacancy
factor or other costs related to the larger
facility. This request provides $70.0 personal
services and $80.0 contractual services costs.
$150.0
Ms. Baker explained that the Nome youth facility is now
fully staffed and has new utility costs.
Section 7-9 Johnson Youth Center
Increased medical costs for services provided to
juveniles at the facility. In the past two years
these costs were covered with ProShare funds, but
that is no longer an option.
$250.0
Ms. Baker explained that although the request is listed
under the Johnson Youth Center, it also applies to increased
medical costs at the McLaughlin, Fairbanks, Bethel, and Nome
centers. Up until this year the Department has been able to
expand ProShare coverage to absorb the increase.
Co-Chair Chenault asked if Kenai was included in the
request. Ms. Baker replied that Kenai has not had the
increased expenses. Co-Chair Chenault wondered if all the
centers would be seeing the increased costs that the Nome
Youth Facility was experiencing. Ms. Baker explained that
the FY 09 budget does contain a request for more money to
bring all the facilities closer to being fully staffed.
2:53:26 PM
Representative Gara referred to increased Medicaid service
cost. His understanding was that the State budgeted money to
replace lost federal Medicaid funding. He wanted
clarification on the difference in what Medicaid funds the
State received from the federal government last FY compared
to this FY to get a sense of how much has to be replaced.
Ms. Baker pointed out that the federal match rate has gone
down and some of the increases relate to replacing the lost
federal receipts for ProShare.
Section 7-9 Probation Services
Replace uncollectible federal funding for Targeted
Case Management.
$600.0
Ms. Baker described a fund source change for Probation
Services in Juvenile Justice consisting of a reduction of
$600.0 in federal receipts and an increase of the same
amount in General Funds. Juvenile Justice had planned to use
targeted case management, but they will not be able to claim
those funds this fiscal year. There is a similar request in
FY 09. Co-Chair Chenault clarified that this cost will be
picked up by the State. Ms. Baker said the State had picked
up the cost until FY 08 when the reduction was taken, hoping
the case management method would work.
Representative Hawker asked how the item would be reflected
in the FY 09 operating budget. Ms. Baker said there would be
an amendment.
2:55:45 PM
Section 7-9 Probation Services
Court Ordered costs. Per legislative direction,
these costs are requested through supplementals
instead of being incorporated into the base
budget.
$221.0
Ms. Baker explained that the Legislature had asked the
Department to come through the supplemental process for
costs that were above and beyond regular operating and that
were court ordered. Juvenile Justice has tracked those costs
and is asking for $221.0 GF to cover the projected need.
Section 7-9 Women, Infants and Children
Increased SDPR from baby formula rebates. This
corresponds to the department's FY 09 increment
request of $650.0.
$852.3
Ms. Baker explained that manufacture rebates come to the
State for any infant formula that the State disbursed. Co-
Chair Chenault asked what the funds would be used for. Ms.
Baker said the infant food packages sent out through the
program are funded by statutory designated program receipts.
2:57:10 PM
Section 7-9 Certification and Licensing
Increased authority to receive and expend fees
generated by background check applications.
Originally anticipated 16,000 to 18,000
applications; projected increase is 12,000
applications from Foster Care and Child Care
employees.
$945.0
Ms. Baker explained that when the Department originally put
the numbers together for FY 08, they had anticipated
processing approximately 14,000 background check
applications from hospitals, nursing homes, residential
child care, assisted living homes and other health related
service providers. At the end of August 2007 there had been
23,000 processed and over 9,000 more by the end of December.
The majority of the funds are for the Department of Public
Safety for fingerprint checks.
Section 8-9 Alaska Psychiatric Institute
Increased Third-Party payment receipts enabling
the department to save some general funds. This is
reflected in section 8, the departmental fund
source list.
Ms. Baker described this delete/add supplemental item as the
Department offering up $850.0 GF mental health funds and
replacing that with statutory designated receipts for the
same amount. The Alaska Psychiatric Institute has increased
collections related to third-party payments such as
Medicare. Changes in the Medicare regulations allowed for
reimbursement for diagnosis-related group activities; more
activities can be claimed for Medicare reimbursement.
Section 10-12 Capital
Alaska Psychiatric Institute Automation. Funding
for electronic records system and tele-behavioral
health evaluation and treatment system. The
electronic records system is partially funded with
an existing capital project with the remainder
coming from the operation budget. This system is
used to track important patient data and will
provide API with reliable funding and census
information. API is moving towards tele-behavioral
health to allow psychiatric evaluation and
treatment of patients from remote locations.
$1,200.00
Ms. Baker said that the Alaska Psychiatric Institute (API)
expects to collect approximately $2 million in additional
statutory designated program receipts. In addition to the
fund source change discussed in the previous item, the
Department would like to supplement the capital project the
Legislature provided a few years ago for an electronic
medical records system for API. The original system was of
limited scope.
3:01:21 PM
Ms. Baker explained that in addition, API hopes to expand
treatment options to include more community-based work. The
Department thought it would be more beneficial to ask for
the money as a capital project.
Co-Chair Chenault acknowledged that the Legislature started
the program DHSS was asking to capitalize. He recalled that
$674,000 was put into the program and wondered what the
total cost would be to bring the records up to date. Ms.
Baker did not have a specific estimate.
Co-Chair Chenault requested the total cost as it affects
both this year's budget and the out years. The Governor has
said that she would like to control the increases. Ms. Baker
responded that she would follow up on that.
Section 14 Senior Benefits Payment Program
Senior Benefits. SB 4, which passed in June 2007,
does not establish a flat rate, but sets rates
from $100 to $175/month depending on household
income. Maximum income eligibility level is 150%
of federal poverty guidelines for Alaska.
$18,492.1
Ms. Baker explained that the senior benefits program request
is a fast-track request. Senior care benefits expired last
year and SB 4 continued those benefits. The request is for
$18,492,100; the estimate is in the informational fiscal
note that passed with SB 4. Ms. Baker reported that the
program is on track with the payments.
Section 29(b)(1) Ratification: Team Nutrition $8,210.00
Section 29(b)(2) Ratification: EMS Data Collection $9,488.71
Section 29(b)(3) Ratification: Phase II EMS Data
Collection $5,533.25
Section 29(b)(4) Ratification: IPEMS CPS Coord. $6,980.98
Ms. Baker talked about Ratifications in Section 29(b)(1)
through 29(b)(4), which all relate to unbudgeted
reimbursable services agreements (RSA) or services within
Public Health. Due to timing and miscommunications, DHSS has
ended up in a shortfall situation. There is no
administrative way to remedy the shortfall; however, the
programs impacted would have had the necessary funding in
the regular side of the accounting system to cover these
costs.
3:05:16 PM
Section 29(b)(5)Ratification: Medicaid $25,141,116
Ms. Baker explained that in FY 03 and FY 04 the DHSS saved a
total of $40 million related to ProShare. When ProShare was
disallowed, the $21,357,000 spent in FY 06 was ratified.
These funds were within the total appropriation; DHSS
expected the federal revenue and carried a federal accounts
receivable on the books. However, the payment has gone out
of the GF. She reminded the Committee that DHSS had the
understanding of both the Administration and the Legislature
that there was risk to continuing the refinancing process.
Ms. Baker further explained that the second part of the
29(b)(5) ratification is the Indian Health Services (IHS)
request for $3,784,017. If someone goes into an IHS facility
and they are referred to a non-HIS, the Department feels
that the referral should be covered by 100% federal funds.
The federal government disagrees, and other states have lost
this appeal.
Section 29(b)(6) Ratification: Medicaid $4,350,407.00
Ms. Baker explained this ratification as a small piece of
the FY 07 ProShare ratification.
3:08:27 PM
Section 29(b)(7) Ratification: Health Care Serv. $231,500.00
Ms. Baker described another ratification related to health
care services in FY 05 for the women and adolescent services
component. The Department over-collected on the grant
resulting in a shortfall of $231,500.
3:09:25 PM
DEPARTMENT OF ADMINISTRATION
Section 1-3 General Government Unit (GGU)
Ratified bargaining unit agreement costs for the
GGU. 4% wage increase and health insurance
increase of $16.58 from $863.20 to $879.78
$24,234.3
ERIC SWANSON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF ADMINISTRATION DOA, explained that the section
pertains to the funding necessary to provide for the GGU
contract. The increase will be reflected in adjustments for
virtually every agency.
Section 4-6 ETS Net Zero Supplemental
Funds previously distributed to state agencies to
offset increased chargeback rates for enterprise
technology services as identified in the statewide
federal cost allocation plan are redistributed to
more closely align with costs.
$0.0
Mr. Swanson reassured the Committee that DOA was not looking
for new funding with this request but looking for approval
to redistribute some of the funding that has been
appropriated in prior years for enterprise technology
services charge backs. For three departments the cost is
going down; for the remainder of the departments costs are
going up.
Section 7-9 Office of Public Advocacy
Current projections indicate OPA will require
supplemental funding in the amount of $2,400.0 to
operate through FY2008. Caseload growth has gone
beyond anybody's expectation. OPA has seen a
significant spike in case assignments in Anchorage
and Palmer. OPA has also seen a number of the more
complicated and expensive cases go to trial (cold
cases and numerous murder cases). While OPA
projected an increase in felony cases of 12%
statewide based on a 5 year average, in Anchorage
OPA has seen a 43% increase in felony filings in
the first half of FY2008 compared to last year. On
the higher level crimes, OPA saw a 48% increase in
unclassified cases and a 158% increase in A
felonies.
There are $90.0 excess guardianship fees receipts
in FY2008, which will be used to fund a portion of
this supplemental.
$2,400.0
Section 7-9 Public Defender Agency
Current projections indicate the PD will require
supplemental funding in the amount of $820.0 to
operate through FY2008. The PD has experienced
significant increases in case load of a variety of
types throughout the much of the state in the
first quarter of FY2008 as compared to the same
period in FY2007. In Anchorage felonies are up 2%
and misdemeanors are up 19%. In Southcentral
Alaska felonies are up 12%, misdemeanors are up
19%, child in need of aid (CINA) cases are up 82%,
while in Southwest Alaska those cases are up 30%,
21%, and 85% respectively.
$820.0
Mr. Swanson explained that in these supplemental requests
for the Office of Public Advocacy (OPA) and Public Defender
Agency (PD), the funding amount is driven by caseload.
Caseload is up for both agencies. The disparate amount
requested by the agencies is explained by several factors.
3:12:27 PM
Mr. Swanson thought PD has improved its ability to identify
potential conflicts early in a case. A case with conflicts
is automatically transferred to the OPA. Those types of
cases have tended to be more expensive ones with significant
fiscal impact. Many of those cases must be assigned to
contract attorneys, who cost more than staff attorneys.
Representative Gara pointed out that under the previous
administration there was an attempt to save costs by hiring
in-house. He wondered if the case load was expected to
increase substantially and if the Department has given OPA
the authority to save money by hiring more staff attorneys.
He was concerned that past administrations have tried to
keep down the number of state employees.
JOSH FINK, PUBLIC ADVOCATE, OFFICE OF PUBLIC ADVOCACY,
DEPARTMENT OF ADMINISTRATION (TESTIFIED VIA TELECONFERENCE),
explained that in FY 08 the DOA was authorized ten new
positions. Those positions were not enough to handle the
significant and unexpected increases in caseloads. Anchorage
is up 43% on felony cases; the trial rate is up 61% from the
previous year. He believed the Commissioner of DOA is
amenable to bringing on staff as long as people will be
represented more efficiently. He is currently looking at
data to figure out how to hire staff to lessen the need for
contractors and reduce those costs.
3:16:01 PM
Co-Chair Chenault asked how many of the ten employees had
been hired. Mr. Fink replied that eight have been hired and
DOA is recruiting for the others. Co-Chair Chenault wondered
if Mr. Fink saw the increase in cases as an on-going trend
or a one-time spike. Mr. Fink thought the situation was
unusual and that although typically PD gets most of the
criminal cases, OPA would start getting a larger percentage
of them. Early in FY 08 as a number of cases were going to
trial, PD realized they had a conflict and so OPA received a
surge of unanticipated cases. The Public Defender decided to
conduct conflict analysis early in the cases.
3:19:06 PM
Section 28(a) Administrative Lease Financing
Atwood parking garage debt: $3,443,000 was
appropriated in HB 95, Sec 30(m) for FY08. Only
one debt payment in the amount of $535,105.53 will
be made in FY08, a reduction of $2,907,894 from
the maximum amount that had originally been
estimated.
($2,907.9)
Mr. Swanson explained the debt service reduction for the
Atwood parking garage.
3:19:52 PM
DEPARTMENT OF COMMERCE, COMMUNITY & ECONOMIC DEVELOPMENT
Section 7-9 Alaska Energy Authority Power Cost Equalization
Fully fund PCE by increasing the program $1,200.0
from $26,760.0 to $27,960.0 due to the increase in
fuel costs.
$1,200.0
SAMUEL THOMAS, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT, explained the increase requested for PCE.
Section 7-9 Banking and Securities
Estimated legal and administrative hearing costs
above the funding level of the fiscal note for
Chapter 50, SLA2007 (HB162 - Mortgage Bill). At
the time the bill was passed it was agreed with
the legislature that, if necessary, these
additional costs would be sought for FY08.
$95.0
Mr. Thomas explained that Banking and Securities are
requesting $95,000 receipt support services money because of
recent legal costs especially on the ANCSA oil site.
Section 7-9 Insurance
Estimated legal and administrative hearing costs
above funding level.
$140.0
Mr. Thomas described the Division of Insurance request for
$140,000 receipt supported services to cover increased cost
due to fraud convictions.
3:23:16 PM
Section 7-9 Regulatory Commission of Alaska
Unexpected high, ongoing costs of major litigation
are exceeding FY07 supplemental and FY08 operating
funding amounts. In the past, some litigation
costs were funded by not filling positions. This
is no longer possible due to expanding case load,
recently imposed statutory deadlines, and dramatic
loss of tenured advisory staff.
$ 500.0
Mr. Thomas explained the rising costs of the Regulatory
Commission of Alaska.
Section 10-12 Capital Request: Prescription Drug Monitoring
This capital project grant request is for the
initial planning grant awarded by the U.S.
Department of Justice related to the Prescription
Drug Monitoring Program. Prescription monitoring
programs help prevent and detect the diversion and
abuse of pharmaceutical controlled substances,
particularly at the retail level where no other
automated information collection system exists.
$49.4
Mr. Thomas described a new prescription drug monitoring
program. Investigators are spending a great deal of time
searching for drugs. The $49,000 is for planning purposes,
to research the purchase of a software program that will cut
search time from three months to a few weeks.
Co-Chair Chenault voiced concerns that this is a mechanism
to start a new program that will eventually lead to new
State operating costs.
3:25:59 PM
Section 10-12 Capital Request: Grant for Elections.
The Division of Elections will be conducting an
incorporation election in Wrangell in early May.
If voters approve, city will be dissolved and a
borough will be formed. The department only has 30
days after the election is certified to provide
the first year organization grant. This request is
for the first year grant for Wrangell, the FY09
Capital Budget requests the second year grant.
$300.0
Mr. Thomas explained that the city of Wrangell is asking for
a grant to cover costs related to becoming a borough.
Section 10-12 Capital Request: Climate Change Impact
Climate Change Impact Mitigation Program. Grants
($150.0 max) to imminently threatened communities
for planning for addressing threats and mitigation
measures; mini grants ($50.0 max) to identify
climate change related impacts that are
threatening life, property or economics; support
for local coordination in communities
demonstrating imminent threats; and funding for
oversight of programs and grants.
$1,100.0
Mr. Thomas delineated the $1.1 million request for the
Climate Change Impact Mitigation Program. He described major
erosion problems in villages and other effects of climate
change in northern Alaska.
Co-Chair Chenault reiterated concerns and questions
regarding new programs.
3:28:01 PM
Representative Joule wondered if help would get to
communities when urgently needed rather than depend on
funding cycles. He described the difficulties in Kivalina
after a bad season and wondered about the need for a capital
supplemental.
Section 20(a) Capital
Correct sec 42(c), SB53, SLA 2007, pg 164, line
19, by deleting the reference to "for the fiscal
year ending June 30, 2008."
$0.0
Mr. Thomas pointed out a language change.
Section 20(b) Capital
Restore $34,334 revenue sharing for the community
of Whitestone - sec. 55(c), ch. 30, SLA 2007, page
184, line 3.
$34.3
Mr. Thomas talked about restoring $34,334 to the community
of Whitestone which did not receive money appropriated to
them due to confusion about two locations with the same
name. One of the locations was a mining operation.
3:31:34 PM
Section 20(c) Alaska Energy Authority
Rename the Alaska Energy Authority - ALCAN
Intertie project (sec. 4, ch. 82, SLA 2006, page
117, lines 21-22 - $3,200,000) to Alaska Energy
Authority - Kake - Petersburg Intertie and Alaska
- British Columbia Intertie.
$0.0
Mr. Thomas talked about the Alaska Energy Authority name
change and said he did not have many details. Co-Chair
Chenault wanted to be sure the Alaska Energy Authority is
changing their name and not re-appropriating to a different
project.
Section 20(d) Quality Trade Association Contract
Reduce the FY08 operating appropriation for this
component by $800.0 from $5,005.1 to $4,205.1 to
"free up" funds that are then used in the FY09
capital budget named recipient grant to ATIA.
($800.0)
Mr. Thomas said the Alaska Tourism Industry Association
could not come up with a match in FY 08, so they asked for
an $800,000 reduction in that appropriation.
Section 20(e) Capital
Scope change: Community Development Assistance
[GRANTS] capital project to expand scope to allow
department spending to provide community
assistance. Currently scope is too narrow, only
allowing grants to communities. (Sec. 4, ch. 30,
SLA 2007, page 84, line 26) The estimated
unobligated balance is $11,089,500.
$0.0
Mr. Thomas said this item proposes adjusting language to
reflect a change in scope. The current scope is too narrow
and only allows grants to communities.
3:35:25 PM
Representative Kelly asked if the section dealt with federal
funds. Mr. Thomas said some of the money comes from other
agencies and some from other sources. Representative Kelly
wanted to make sure a simple word change does not have a
broader effect.
Section 27 PCE Fund
PCE Fund Increase PCE Fund capitalization by
$700.0 from $12,999.4 GF to $13,699.4 GF (total
funds from $25,273.0 to $25,973.0) in order to
provide more PCE funding needed due to increased
fuel costs.
$700.0
Mr. Thomas said he would provide more detail if the
Committee needed it.
3:37:43 PM
DEPARTMENT OF CORRECTIONS
SECTION 7-9 Correctional Academy
Training Academy - Recruitment efforts have been
successful, however, this has created a very
critical backlog in getting new hires their
mandatory training. This is a serious safety and
security issue. A supplemental request will meet
the current training needs of the recruits as well
address the curriculum needs of the academy.
$145.4
SHARLEEN GRIFFIN, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF CORRECTIONS, began with the $145,400
supplemental request for the Department's training academy.
She said the Department has done well with a recruitment
campaign which has succeeded in filling the positions;
however, an additional academy is needed to train new
officers this year.
Section 7-9 Institution Director's Office
This request covers the Correctional Facilities
shortfall of personal services, contractual, and
commodities. This includes costs such as
correctional officer overtime, fuel surcharges,
electricity and other utility and heating costs,
increased commodities costs for food and other
operational commodities. The prisons are 24-hour
facilities that must remain open. Every effort is
made to control costs, however, actual costs are
exceeding the FY2008 budget.
$1,852.0
Ms. Griffin said a portion of the $1,852,000 is needed to
pay an additional day of salaries and meals because of leap
year. Another $795,000 is to make up for increased fuel
costs. There are additional costs for overtime to cover for
new officers going through the correctional academy.
Supplies also cost more because of fuel costs.
Co-Chair Chenault asked for clarification regarding the
overtime expenses. Ms. Griffin explained that correctional
officers are working as well as being trained. Additional
resource is needed to cover for them during training.
Section 7-9 Inmate Health Care
The department is requesting a supplemental for
increased inmate health care costs and to meet
medical staff overtime costs. The funding is
needed to meet the department's mandated
obligations of medical care for the aging and
increased population of offenders and for the
sharp increase in the number and the cost for
inmates needing dialysis, cancer treatment and the
growing number of life-threatening cases. Funding
will also assist in meeting the personal service
overtime costs associated with providing the
required nursing oversight.
$2,427.3
Ms. Griffin described the additional costs for inmate health
care due to increases in population and to catastrophic
cases.
3:42:02 PM
Co-Chair Chenault wondered how the State is doing regarding
catastrophic cases. Ms. Griffin answered that so far this
year the cost is $2 million. She said some of those costs
are being recovered due to a $1.9 million increase in the
budget. She said the population is aging and has serious
health challenges, including several heart cases.
Section 21(a) Community Jails
The Division of Legislative Audit recommends that
the Department of Corrections restructure the
community jails program to promote equity between
communities. This involves identifying the various
types of activities and costs associated with
operating local jails while being consistent with
security standards and staffing requirements. This
is even more important because according to the
Department of Administration each community
participating in the community jails program is
already required to have a State single audit.
Establishing a professional services agreement
with an independent contractor will assist the
department in its endeavor to ensure that a
balanced distribution of funding is allocated on
an equitable basis within the community jails
program. An extended termination date is required
to allow sufficient time to procure a contract and
assure the vendor has adequate time to complete
this analysis.
$45.0
Ms. Griffin described the request of $45,000 to restructure
the community jails program to promote equity between
communities. The Department would like a term date extension
on the supplemental. In response to an audit, the Department
proposes to hire a contractor to review each of these
communities and present a plan to more equitably distribute
the money.
Representative Kelly wondered about correcting inequity in
the smaller facilities. He hoped the Department could
recognize that there are differences in what can be provided
in different communities. He was concerned about spending
too much money.
3:45:07 PM
Representative Nelson thought Dillingham, a community in her
district, had one of the smaller facilities. A boom in
prison population during the fishing season resulted in
prisoners sleeping on the floor. She thought there were
disparities in smaller communities compared to places with
larger and more consistent populations.
Ms. Griffin listed some of the smaller prison communities in
the state.
Representative Kelly reiterated his concerns and wanted the
list.
3:47:34 PM
Section 21(b) Out-of-State Contractual
This amount pays for an FY2006 unpaid outstanding
contractual invoice for $50,000 from the
Correctional Corporation of America.
$50.0
Ms. Griffin explained that the vendor had overlooked sending
the invoice.
Section 21(c) Parole Board
This request is to pay an FY2005 unpaid
outstanding invoice for $399.09 from the Voyager
Hotel.
$0.4
Section 21(d) Population Management, Anchorage
There have been lower than anticipated costs and
therefore federal receipts, for housing federal
inmates (man-day federal shortfall). Beds are used
for state and local inmates so general fund
authorization is necessary.
$0.0
Ms. Griffin said DOC is requesting that $1 million of empty
federal receipt authorization be replaced with General
Funds. She said last year federal receipts collected could
not be expended and required a GF replacement. The
Department was $960,000 short last year. These receipts are
slightly overstated as the federal population is going down
and the costs of the facilities are static.
Co-Chair Chenault wondered if there would be another
supplement request next year. Ms. Griffin replied that the
FY 09 request addresses this issue.
HB 343 was HEARD and HELD in Committee for further
consideration.
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