Legislature(2003 - 2004)
04/16/2003 09:04 AM Senate FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 65
"An Act authorizing the Department of Corrections to enter
into agreements with municipalities for new or expanded public
correctional facilities in the Fairbanks North Star Borough,
the Matanuska-Susitna Borough, Bethel, and the Municipality of
Anchorage."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken stated that this bill "authorizes the Department of
Corrections to enter into a twenty-five year lease agreement with
the Fairbanks North Star Borough, the Mat-Su Borough, Bethel, and
Anchorage for a total of 1,160 beds at State correctional
facilities and a new State correctional facility."
Co-Chair Green referenced the sponsor statement.
SFC 03 # 54, Side B 09:53 AM
Co-Chair Green emphasized the need for additional prison beds. She
reminded of the over 650 prisoners currently housed outside the
State, which she characterized as "the least of the worries". She
explained the primary concern is the need for additional pretrial
facilities in Bethel and Fairbanks due to the significant expense
incurred in transporting prisoners between holding facilities and
court proceedings. She furthered that the need exists for a larger
complex, informing that that it has been determined the most
efficient method to accomplish this would be to expand existing
facilities.
Co-Chair Green shared that under the provisions of this legislation
local governments would issue bonds to generate revenue for the
construction costs. Under a release agreement with the Department
of Corrections, she stated that the Department would oversee the
operations of the facilities, as is the current practice.
Co-Chair Green remarked that Sutton is a preferable location for
expansion because of the existing minimum and medium security
facilities. The presence of the two facilities, she stated would
provide "immediate backup" in the event of additional needs or
emergencies. She furthered that inmates in this location are in
close proximity to hospitals, courts and the city of Anchorage "in
tolerable instances."
Co-Chair Green stressed that regardless of whether additional
prisons are constructed in Alaska the State would incur $40 to $45
million in debt within four years for the care of prisoners. She
explained this is due to the need to contract with private prisons
to house inmates. She pointed out that these funds "leave" the
State and that the funds could instead be used to employ Alaskans
if additional prison space were constructed in Alaska.
Co-Chair Green for adoption of CS SB 65, 23-LS0392\S as a working
draft.
There was no objection and the committee substitute was ADOPTED as
a working draft.
Amendment #1: This amendment lowers the maximum annual lease
payment for the proposed facility from $14,600 to $11,000 per bed.
The amended language in Section 1, on page 2 line 19 of the
committee substitute reads as follows.
(2) if construction of a new facility of a new
facility is authorized, the municipality shall initially own
the facility, and the state shall enter into a long-term
lease-purchase not to exceed 25 years with the municipality to
operate the facility and to receive ownership of the facility
at the end of the lease; the annual lease payment for a new
facility may not exceed $11,000 a bed;
Co-Chair Green moved for adoption.
Co-Chair Wilken objected for an explanation.
Co-Chair Green explained this amendment conforms the $11,000 amount
to language contained elsewhere in the committee substitute.
Senator B. Stevens asked how the reduction in the annual lease
payment was achieved.
Co-Chair Green replied this change is the result of an "overall
calculation".
MARK ANTRIM, Commissioner, Department of Corrections testified to
the ongoing process to make the project more cost efficient since
this bill was first introduced.
Senator B. Stevens asked why the maximum lease payment amount
authorized for the Bethel facility was not reduced as well.
JERRY BURNETT, Director, Division of Administrative Services,
Department of Corrections, replied that although the estimated cost
to operate the facility in the Mat-Su area was reduced, the
facilities located in the other areas remains unchanged.
Senator B. Stevens clarified that the operating cost would be
$16,000 per bed annually at the Bethel facility, $14,600 at the
Anchorage location, and $11,000 at the Mat-Su location.
Mr. Burnett affirmed.
Senator B. Stevens asked why the Mat-Su and Anchorage amounts were
different.
Mr. Burnett responded that construction of the Anchorage facility
would be 100 percent federally funded.
Mr. Antrim furthered that the differing figures also reflect
different construction costs, as well as the different missions of
the three facilities. He explained that the Anchorage Jail is a
"booking facility" and that the "booking function" is the most
expensive activity of the Department.
Co-Chair Green added that examination of operating costs of
existing facilities across the State demonstrates variation
depending on the mission and size of a facility and type of inmates
housed. She pointed out that the Mat-Su facility is less costly to
operate because of the number of inmates housed and also because it
is not generally used as a pretrial facility.
Mr. Antrim informed that pretrial facilities must be build to be
indestructible, explaining that when first arrested, people are
most combative.
Senator Bunde referenced the spreadsheet titled "Department of
Corrections FY 2008 Prison Bed Cost Comparison" [copy on file],
which lists the costs of housing inmates at a private facility
located in Arizona, a private facility located in Alaska, and a
public prison located in Alaska. He compared the operating/capital
costs per day of $94 per inmate at a private prison in Alaska to
$51.36 operating costs for a public prison. He relayed that
arguments in favor of a private prison in Alaska attest that wages
would be lower than those paid by the State.
Senator Taylor asked the relation of construction expenses to
future lease amounts, asserting that operating expenses of other
facilities have not been based on construction costs.
Co-Chair Wilken the question applies to bill itself rather than to
the amendment.
Co-Chair Wilken removed his objection to the adoption of the
amendment and the amendment was ADOPTED.
Mr. Antrim gave testimony to the bill, referencing a handout,
titled "Department of Corrections" [copy on file]. He attested that
the State of Alaska is "approaching crisis level", noting that the
inmate facilities operate at 98 to 100 percent of capacity on any
given day. He reported that currently four of the 13 facilities
were over capacity. He opined that operating the facilities at
levels close to full capacity is advisable given that the State
also contracts with private facilities located outside the State to
house inmates.
Mr. Antrim indicated the chart titled "Inmate Population
Statistics," included in the handout, is based on an accurate
mathematical model, and the "Institution Activity 1997-2002" bar
graph shows the large number, over 30,000, of inmate "bookings"
each year. He informed that 20,000 of the bookings involve people
new to the Department system. He also pointed out the large number
of annual transfers, which he explained as movement between
facilities. He compared the amount of bookings and transfers to the
Average Daily Count, or static population of 3,055.
Mr. Antrim clarified the information on the bar graph for Co-Chair
Wilken, showing that in the year 2000, the Department conducted
over 30,000 admissions to all facilities, 22,000 transfers between
facilities and that the total population was over 3,000. He stated
that the average daily count has not changed significantly since no
new construction has occurred to increase capacity.
Senator Bunde asked why the significant number of transfers is
conducted.
Mr. Antrim stated that inmate transfers are the Department's effort
to "balance accounts" between the overcrowded facilities. He
detailed the daily process of analyzing the population of each
facility and determining which inmates would be transferred to
which locations to ensure each facility remain below its capacity
level. He reiterated this is an expensive process.
Senator Bunde surmised that the rate of recidivism is considerable
given that only 3,000 remain incarcerated.
Mr. Antrim agreed the recidivism rate is high.
Senator Bunde asked the percentage of inmates booked who are found
not guilty or are not sentenced to jail terms.
Mr. Antrim stated he would provide the information, noting the
number varies each year. He estimated approximately one-third of
the bookings are the result of recidivism based on the 20,000 new
bookings.
Senator Hoffman noted the Department has little control over the
number of bookings and the average daily count. He detailed the
process by which an inmate at the Bethel facility is transferred to
another facility due to overcrowding in Bethel, and subsequently
transferred back for each court hearing. He asked the expected
reduction of transfers that would result from the proposed
construction.
Mr. Antrim assured a reduction would occur, although he did not
know the exact amount. He explained that a large number of
transfers occur between the Bethel area facility and outlying
villages and that due to the large percentage of pretrial inmates,
those inmates must be transferred to Anchorage to create space for
new arrestees. He stated this situation exists in Nome as well. He
predicted that additional beds at the two facilities would reduce
the number of transfers necessary.
Senator Hoffman furthered that the expansion would also allow
correctional officers to remain at the facilities rather than
accompanying transferring inmates.
Mr. Antrim clarified that Alaska State Troopers execute the
transfers of pretrial detainees with the expenses incurred by the
Department of Public Safety. He indicated that the transfer figures
listed in the handout represent both pretrial detainees and other
inmates transferred to reduce overcrowding, which the Department of
Corrections is responsible for. He noted that the data in the
handout is intending to show the institutional activity and that
expansion of the Bethel and Nome facilities would result in cost
reductions to the Department of Public Safety as well as the
Department of Corrections.
Senator Taylor asked the percentage of the transfers that are
necessary to avoid overcrowding.
Mr. Antrim was uncertain and qualified that the number of necessary
transfers varies daily. He assured that efforts are made to conduct
transfers as "economically possible". He stated that almost half of
the inmates housed at the Lemon Creek Correctional Center in Juneau
are from the Anchorage area and are housed in Juneau to make space
available in Anchorage for inmates from other outlying areas. He
characterized the transfer process as "quite a shell game".
Senator Taylor commented on the amount of "juggling" required and
the "horrendous" cost of these efforts. He surmised the only
solution would be adequate facilities in each community and that
construction one or more large facility in one location would not
address the issue. He shared that when he served as a judge, he
chose community service over incarceration as sentencing to avoid
the expense of inmate transfer.
Senator Olson asked whether private prisons should be part of the
discussion.
Senator Bunde asked if the projected inmate population figures take
into account the aging of the general population as well as the
possibility that the population in Alaska could decline in the
event of a discontinuation of the permanent fund dividend program
or increased taxation.
Mr. Burnett explained that the data utilizes the Department of
Labor and Workforce Development demographic statistics as well as
further analysis conducted by the Department of Corrections.
Mr. Antrim next addressed a bar graph in the handout titled
"Comparison of Facilities with Varying Missions" listing the
different costs of four existing correctional facilities based on
their mission, and another page in the handout, which reads as
follows.
General Specs
Draft CS SB 65
· 1250 beds
· 1000 medium custody beds (est.)
· 190 close custody beds (est.)
· 60 maximum/segregation beds
Mr. Antrim spoke to other pages in the handout, which lists the
total cost of this legislation as $94.94: $51.36 for operating
costs, $22.92 for capital costs and $20.66 "other direct costs",
assuming a 25-year term in debt issue. He indicated these figures
apply to a proposed facility located in Sutton within the Mat-Su
Borough.
Senator Taylor asked how the capital costs were determined.
Mr. Burnett responded that the amounts are "based on the language
of SB 65 that would have the Department entering into a lease for
this facility". He clarified that the capital cost would be
included in the State's cost and that the estimated capital cost of
$22.92 assumes that the total capital cost for a 1250-bed facility
is $132 million financed with a revenue bond for 25 years.
Mr. Antrim indicated this is detailed on the page titled "Estimated
Debt Service."
Senator Taylor asked who would own the facility.
Mr. Burnett replied that under the provisions of this bill, the
facilities would be a lease/purchase arrangement with the State
paying the Borough lease and assuming ownership at the end of the
lease term.
Senator Taylor asked if the Borough would earn a profit from the
lease.
Mr. Burnett answered it would not.
Senator Bunde asked for a breakdown of the "other costs" indicated.
Mr. Burnett replied that the earlier referenced "Prison Bed Cost
Comparison" spreadsheet details these costs for inmate programs,
medical costs, administrative costs and statewide direct costs.
Senator Bunde calculated the medical costs at $11.88.
Mr. Burnett detailed the estimates of medical staffing levels
comparing differed scenarios.
Senator B. Stevens asked how the $22.92 capital cost listed on the
handout relates to Amendment #1.
Mr. Burnett responded that this amount only relates to the proposed
facility in the Mat-Su Borough.
Senator B. Stevens calculated the daily amount at $30.
Mr. Burnett stated he would review the figures, but pointed out the
$11,000 limit adopted in the amendment is a maximum amount.
Mr. Antrim interjected that the "Estimated Debt Service"
spreadsheet calculates $30.62 for a 15-year debt term, and stated
that if the term were lengthened, the daily amount would be
reduced.
Mr. Antrim then referenced the pages titled "Bethel Expansion",
"Fairbanks Expansion" and "Anchorage Expansion" as showing
justification for the projects. He noted the presence of a Superior
Court in Bethel, resulting in a number of pretrial detainees at
that location and the United States Marshall's expected increase in
the number of federal detainees housed in Anchorage and Juneau. He
also indicated diagrams illustrating the expansions in the
Fairbanks Correctional Center and the Anchorage Jail.
SFC 03 # 55, Side A 10:41 AM
JIM LECRONE, Retired Correctional Officer, testified via
teleconference from Anchorage, about the dangers of prison
overcrowding.
DEE HUBBARD, Sterling Resident and Citizen Activist, testified in
person in support of this legislation.
Senator Olson asked of Mr. Lecrone ever feared for his life as a
result of overcrowding.
Mr. Lecrone informed that he was stationed in lesser security
facilities and although wrestling occurred, he never feared for his
life.
Senator Olson asked if weapons were therefore not found on inmates.
Mr. Lecrone corrected that inmates were found to have weapons and
described these weapons.
Senator Taylor requested a comparison of the number of escapees and
assaults committed by Alaskan inmates at the private prison in
Arizona versus public facilities in Alaska.
Co-Chair Wilken ordered the bill HELD in Committee.
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