Legislature(2011 - 2012)HOUSE FINANCE 519
02/02/2012 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| Budget Overview: Department of Public Safety | |
| Budget Overview: Department of Corrections | |
| Presentation: Alaska Mental Health Trust Authority | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
HOUSE FINANCE COMMITTEE
February 2, 2012
1:42 p.m.
1:42:11 PM
CALL TO ORDER
Co-Chair Thomas called the House Finance Committee meeting
to order at 1:42 p.m.
MEMBERS PRESENT
Representative Bill Stoltze, Co-Chair
Representative Bill Thomas Jr., Co-Chair
Representative Anna Fairclough, Vice-Chair
Representative Mia Costello
Representative Mike Doogan
Representative Bryce Edgmon
Representative Les Gara
Representative David Guttenberg
Representative Reggie Joule
Representative Mark Neuman
Representative Tammie Wilson
MEMBERS ABSENT
None
ALSO PRESENT
Joseph Masters, Commissioner, Department of Public Safety
(DPS); Dan Spencer, Director, Division of Administrative
Services, Department of Public Safety; Joseph Schmidt,
Commissioner, Department of Corrections (DOC); Leslie
Houston, Director, Division of Administrative Services,
Department of Corrections; Carmen Gutierrez, Deputy
Commissioner, Department of Corrections; Dr. William
Doolittle, Board Member, Alaska Mental Health Trust
Authority (AMHTA); Larry Norene, Trustee, Alaska Mental
Health Trust Authority; Jeff Jessee, Chief Executive
Officer, Alaska Mental Health Trust Authority; Mike Barton,
Trustee, Alaska Mental Health Trust Authority; Greg Jones,
Executive Director, Mental Health Trust Land Office,
Department of Natural Resources.
SUMMARY
BUDGET OVERVIEWS:
Department of Public Safety
Department of Corrections
PRESENTATION:
Alaska Mental Health Trust Authority
^BUDGET OVERVIEW: DEPARTMENT OF PUBLIC SAFETY
1:43:06 PM
JOSEPH MASTERS, COMMISSIONER, DEPARTMENT OF PUBLIC SAFETY
(DPS), introduced staff from the department. He provided a
PowerPoint presentation titled "Department of Public Safety
Department Overview." He highlighted that DPS was the
primary statewide law enforcement agency; its mission was
to ensure public safety and enforce fish and wildlife laws
(slide 2).
1:45:59 PM
Commissioner Masters provided a list of DPS priority
programs including, Law Enforcement Patrol and
Investigations, which encompassed Alaska State Troopers
(AST), Alaska Wildlife Troopers (AWT), and special
investigative units; Rural Law Enforcement, which included
the Village Public Safety Officer program (VPSO) and rural
areas; Domestic Violence and Sexual Assault Programs;
Statewide Public Safety Programs, which included various
systems and crime laboratories; resource protection; and,
highway safety (Bureau of Highway Patrol).
Commissioner Masters emphasized that the department was the
primary state law enforcement agency (slide 3). He noted
that DPS had a much broader responsibility than providing
direct AST and AWT services; it had a statutory mandate
that required it to assist other state, federal, and
municipal agencies related to major crime investigations
(e.g. homicide, drug and alcohol, and internet crimes).
The department was also responsible for search and rescue
and training; training assistance was provided through the
academy in Sitka, the Alaska Police Standards Council, and
other. Statewide impact was also facilitated by the Alaska
Public Safety Information Network (APSIN).
Commissioner Masters outlined performance indicators on
slide 4. He relayed that AST had responded to approximately
115,000 calls for service in the past year in addition to
733 search and rescue calls, and 18 homicide investigations
(17 of the homicides had been solved). He noted that AST
had solved 51 out of 53 homicides in the past four years.
He addressed rural law enforcement and its associated key
indicator that dealt with the amount of criminal activity
cases that were referred to the Department of Law (DOL) for
prosecution and whether the number was increasing; the
number had increased from 31 percent in FY 10 to 36 percent
in FY 11. He discussed that the number of domestic violence
and sexual assault cases accepted for prosecution had
increased from 41 percent in FY 10 to 44 percent in FY 11.
Representative Gara asked for detail on the meaning of the
increase in accepted prosecutions for rural law enforcement
and domestic violence.
1:50:09 PM
Commissioner Masters replied that the indicator referred to
the number of cases investigated by troopers that were
referred to DOL; the preference would be for the number to
increase as high as possible. He explained that a number of
different items influenced whether a case was prosecuted
including, the quality of a case, the amount of evidence
obtained, how the case was handled at DOL, the availability
of cooperative witnesses or victims, and other. The
department had a 70 percent target rate for cases accepted
by DOL for prosecution; DPS had started with a success rate
around the 30 percentile and the number had been steadily
increasing over time. He detailed that the department
worked to identify cases that it would not move forward due
to a lack of evidence, but it did not want to superficially
keep the number low to increase the cases accepted for
prosecution. He relayed that some agencies submitted almost
all cases they investigated; whereas, others only submitted
cases that they knew would result in prosecution. He noted
that AST preferred to get DOL involved even in the marginal
cases.
Representative Gara wondered what prevented the department
from reaching its 70 percent target. Commissioner Masters
believed that 70 percent was an arbitrary number and not a
realistic one. He stressed that the ability to obtain
evidence and witness and victim cooperation were
significantly different between person and property crimes.
He elaborated that the national trend was similar where
property crimes had higher acceptance rates for prosecution
than person crimes.
1:53:39 PM
Commissioner Masters continued to discuss DPS performance
indicators on slide 4. He highlighted two significant
indicators under statewide public safety programs related
to crime lab performance and how quickly evidence was
processed: (1) requests that were processed within 30 days
had increased from 78 percent in FY 10 to 83 percent in FY
11. He believed the department's goal of an increase to 90
percent was feasible; (2) requests that took longer than
120 days to process had decreased from 2 percent in FY 10
to 1.5 percent in FY 11. He relayed that backlogs in the
lab for sexual assault investigations and evidence did not
go back further than March 2010. Significant improvements
had been made on property crime backlogs, which currently
went back to 2009. He noted that approximately 40 percent
of the DNA submitted for property crimes enabled the
department to develop suspects.
Commissioner Masters identified resource protection
performance indicators (slide 4). He relayed that AWT was
responsible for efforts to reduce recreational boater
deaths; there were 12 deaths in FY 11 and 11 deaths in FY
10 (the four years prior to FY 10 had seen decreases in the
deaths). He relayed that wildlife violations constituted
4.9 percent of the overall number of contacts AWT had with
resource users. He expounded that in 2008 there were 58,000
contacts and 86,000 contacts in 2011. The number of
violations had been decreasing over the years, which
indicated a higher adherence to laws. He discussed a final
performance indicator related to highway safety and relayed
that there had been a 14 percent decrease in the number of
fatalities that related to driving under the influence
(DUI) compared to the prior three-year average. The three-
year period had been used in order to avoid artificial
spikes in one year impacting the next year's numbers. There
were 72 fatalities in 2011, 19 of which were suspected to
be alcohol related.
1:58:12 PM
Co-Chair Thomas wondered whether DUIs in municipalities
were included in the DPS fatality figures. Commissioner
Masters replied that the primary mission for the
investigations were fatalities that occurred in AST areas
of responsibility; there were some that were jointly
investigated (e.g. DPS would offer assistance on highway
fatalities that occurred in a corridor within a city. In
some cases DPS would most likely do the investigations in
areas such as Wasilla or Palmer).
Commissioner Masters directed attention to an
organizational chart on slide 5. The commissioner had
primary responsibility for Administrative Services, Alaska
State Troopers, and the Alaska Wildlife Troopers. Deputy
Commissioner, Terry Vrabec was in charge of the Crime Lab,
Fire and Life Safety, Statewide Services, and the Training
Academy. The department also housed the Alaska Fire
Standards Council, Alaska Police Standards Council, Council
on Domestic Violence and Sexual Assault (CDVSA), and the
Alcohol Beverage Control Board.
DAN SPENCER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF PUBLIC SAFETY, pointed to slide 6 and made a
joke about an eye exam, given that the slide title did not
match the number of years provided on its chart.
Commissioner Masters explained that the chart on slide 6
included a nine-year look back for the department's total
agency operations. The chart showed that the department's
average annual general fund growth rate was 7.8 percent -
the number coincided with the overall average state
department budget growth. Between FY 09 and FY 10 the DPS
average budget increase was approximately one-third of a
percent higher than the overall department average due to
efforts by the governor and legislature to improve rural
services and sexual assault and domestic violence measures.
The primary drivers of the cost over the past several years
were increased personnel (primarily state troopers), VPSO
increases and improvements, the changeover from Permanent
Fund Dividend (PFD) felon funds, increases within CDVSA,
and salary adjustments.
Co-Chair Stoltze queried the status of the funding source
for PFD felons. Mr. Spencer responded that the PFD felon
funds had been sloughed out; funds had been replaced by
general funds. He did not have current data on hand.
Co-Chair Stoltze was interested in the information because
the issue was related to public protection and victims'
rights.
2:02:38 PM
Commissioner Masters accentuated that the department's
ability to deliver services was directly related to having
qualified and skilled employees (slide 7). He drew
attention to a line chart related to the management plan
and filled state trooper positions. He relayed that 399 of
the 412 authorized DPS positions within AST and AWT were
filled. There were 318 authorized positions within AST and
306 were filled; the number had increased from 257
positions filled in FY 08. Currently 93 out of 98
authorized AWT positions were filled compared to 82 filled
positions in FY 08.
Representative Neuman believed that the troopers were doing
well; however, he pointed to some concern from the Big Lake
community related to trooper response time. He had
previously been told that DPS had approximately 30 trooper
positions open. He wondered about the reason and what
measures had been taken to increase the number of
applicants.
Commissioner Masters replied that it was very difficult to
arrive at the number of filled positions. The department
had to count each person by name in order to determine the
number; the exercise had shown that the number of vacant
positions was less than DPS originally believed. For an
undetermined reason DPS had a more difficult time
recruiting for specific positions particularly in 2010 and
part of 2011. He believed the number was picking up; eight
new employees had been hired and five more were expected in
April as a result of a lateral hire. He communicated that
DPS was currently receiving applications for the fall 2012
academy. He estimated that there was currently a 75 percent
increase in the number over prior years.
2:06:54 PM
Representative Neuman asked about current trooper retention
compared to past years. Commissioner Masters believed that
the number of positions had remained relatively stable and
that the turnover rate had not been high. He noted that
there had been some departures as a result of disciplinary
actions or internal investigations. Several employees had
left for personal/family reasons, but there had not been a
recent "exodus" of employees leaving in search of better
jobs, higher pay, or improved benefits.
Commissioner Masters addressed a historical line graph
indicating that 58 out of 59 court service officer (CSO)
positions had been filled in FY 12 (slide 8). He detailed
that the positions provided critical court system security.
Additionally, the positions had moved 62,000 prisoners,
served 23,000 writs, and 10,000 warrants. He explained that
CSOs allowed troopers to concentrate on other high priority
work. Slide 9 included a historical chart related to VPSO
positions. He stated that the legislature had been working
closely with DPS to ensure that the VPSO program was
revitalized and supported. As of January 1, 2012, 96 of the
112 authorized positions were filled in 76 communities.
Representative Gara asked whether the governor's plan was
to add 10 VPSO positions per year over the course of a 10-
year period. Commissioner Masters replied that the
governor's plan was to add 15 VPSOs per year for a 10-year
period; the plan was currently in its third year.
Representative Gara agreed that the VPSO program should be
expanded in order to protect crime victims in communities.
He wondered whether the rate could be accelerated to more
than 15 new positions per year. Commissioner Masters
explained that 15 new VPSO positions per year was the
maximum growth the department could handle. The limitation
was not necessarily based on training, but on the ability
to identify and receive applicants. Currently non-profit
organizations were the primary recruiters and were working
with communities to ensure that infrastructure to support
the officers existed. He equated the situation to a three-
legged stool that included DPS, non-profits, and the
communities, which provided day-to-day guidance,
infrastructure (e.g. offices and holding cells), equipment,
and other. There were currently communities willing to have
VPSOs that did not have the appropriate infrastructures or
financial ability in place. The department was providing
help with items such as grant writing for federal programs
such as the Combined Tribal Assistance Solicitation; DPS
was also looking at utilization of funds to provide some
assistance to help put heaters in offices and the
rudimentary level of equipment for holding cells. He
reiterated that there were a variety of reasons that the
maximum level remained at 15 per year.
2:13:58 PM
Commissioner Masters reiterated the importance of the VPSO
program. A University of Alaska Anchorage Justice Center
study showed that serious physical injury resulting from
felony assault was reduced by approximately 40 percent with
the presence of VPSOs. Additionally, the acceptance for
prosecution rates for sexual assault had been increased by
3.5 times even though VPSOs did not investigate sexual
assaults. Domestic violence cases that were prosecuted also
increased 2.5 times. He informed the committee that VPSOs
had responded to over 7,000 cases in the past year; the
number would increase in upcoming years.
Representative Edgmon wondered how many of the 7,000 cases
the prior year had been related to alcohol. Commissioner
Masters believed the number was around 80 percent or more
related to criminal cases.
Commissioner Masters turned to slide 10 titled "FY2012
Increments." The first increment funded three new troopers
for VPSO support; duties included mentorship of VPSOs,
mentorship of communities with VPSOs, and work with non-
profits to ensure that the program was running correctly.
All three of the positions had been filled and were located
in Bethel, Kotzebue, and Fairbanks. The proposed FY 13
budget included funding for one trooper position for every
15 VPSO positions. A new investigator and criminal justice
technician for internet crimes against children
investigation had been hired in FY 12. Funding had been
provided in FY 12 for a new trooper post that had been
established in Selawik; troopers assigned to the post would
be permanently based in the community as of February 15,
2012. The budgeted public safety emergency communications
coordinator position had been filled. As of January 1,
2012, 10 of the 15 authorized VPSO positions had been
filled. A $50,000 funding increment to the Alaska Police
Standards Council was included in FY 12 for child forensic
interview training; the training was currently in the
development phase and the department expected to expend the
funds by the end of the fiscal year.
Commissioner Masters pointed to FY 12 CDVSA increments on
slide 11. He noted that the majority of funding went to
subgrants for CDVSA ongoing programs. He looked at the
primary proposed FY 13 increments on slide 12. Increments
included funding for the AST position for VPSO support
(corresponding to the plan for 15 new VPSOs per year); the
position was currently intended to provide support in
Southeast. Another increment would go to AWT for a civilian
pilot and operating costs for a turbine helicopter that
would be stationed in the Interior for law enforcement
response and search and rescue. A proposed $500,000
increment would expand on existing VPSO funding to provide
important VPSO and Village Police Officer (VPO) training
that would enable the officers to meet APSC certification
requirements. He added that VPSO training was currently
APSC certified, but it did not meet the minimum standards
to fulfill the requirements for basic police officer
certification. He explained that DPS had a statutory
responsibility to assist agencies with law enforcement. He
elaborated that there were currently 125 VPOs in 49
communities who were hired by villages (subdivisions of
state government). Most VPOs had little training; some had
received two weeks of training through a Department of
Justice grant that was no longer available. The proposal
would integrate VPSO and VPO training, which would be
provided in the Sitka academy and in regional hub areas
such as Bethel. The slide also included an increment for a
facilities maintenance position at the new crime laboratory
facility.
2:22:04 PM
Commissioner Masters pointed to proposed CDVSA FY 13
increments on slide 13. The increments listed only related
to DPS requests and not those included in the governor's
initiative.
Representative Doogan referred to the department's FY 13
budget book and surmised that there had been a significant
amount cost-shifting from federal to state funds.
Commissioner Masters replied in the affirmative; several
requests had been made as a result of diminishing federal
funds. American Recovery and Reinvestment Act (ARRA)
funding through the Justice Assistance Grants would be
discontinued in the middle of FY 13. Currently ARRA funds
paid for a DOL prosecutor and six investigator positions
focused on investigations related to sexual assault, sexual
abuse of minors, and internet crimes against children. He
noted that the governor had approved very few full-time
positions that were attached to the federal funding; the
expectation at the start was that the positions would
initially be funded by the federal money and would
eventually be funded by state general funds.
Representative Doogan observed that the DPS had the highest
occurrence of cost-shifting out of all state departments.
He requested an explanation of all of the shifts that had
been made. He noted that several legislators had been
sending departments the message that they should not expect
federal funds to be replaced.
2:25:53 PM
Co-Chair Stoltze believed that when the positions had been
created it was understood that the state would take
advantage of the federal funds until it had to take over
the financial responsibility.
Representative Doogan clarified that he had not meant to
question the merits of the numbers, but only to ascertain
what cost shifting was occurring.
Representative Neuman asked whether life saving measures
were in place to respond to catastrophic events (e.g. a
plane going down in Cook Inlet).
Commissioner Masters explained that the primary responders
to a catastrophic event in Cook Inlet would be the
Municipality of Anchorage and the Department of Military
and Veteran's Affairs emergency management group; DPS would
primarily act in a supporting role to provide resources and
personnel. He believed the state would benefit by moving
forward on improved planning with the municipality and the
Ted Stevens International Airport. He did not think current
plans were deficient, but that there was room for
improvement.
2:29:19 PM
Co-Chair Thomas noted that the committee had been telling
departments and school districts that ARRA funds would not
be replaced with general funds. He would have a
conversation with Co-Chair Stoltze about the proposed
increment that could fall under a different circumstance.
Co-Chair Stoltze explained that the state had a commitment
to the programs and had saved money by supplanting some of
the costs with federal funds.
Co-Chair Thomas stressed that the committee had been firm
[in its message to departments]. Commissioner Masters
understood the committee's goals and would help provide
information on determining priorities.
Mr. Spencer added that when ARRA funds had been discussed
with the legislature, DPS was the only department that had
received authorization to pay for positions with the funds.
2:31:11 PM
Commissioner Masters reviewed the status of current year
accomplishments on slide 14. He discussed that the
construction and completion of a new crime lab was on
schedule and on budget with an expected completion date of
approximately June 2, 2012. There were two ongoing projects
at the Public Safety Academy, (1) was an addition that
would allow the program to cook for and feed students in-
house and (2) was the development of an emergency vehicle
driver training track in Sitka. There was a successful
Village Crime Reduction Program in rural Alaska where the
department worked with AST and other agencies. He briefly
referred to accomplishments in rural Alaska related to
troopers and VPSOs.
Commissioner Masters spoke to major challenges that were
before the department (slide 14). The loss of federal funds
was one key challenge. The department had received a 10
percent federal Justice Assistance Grant penalty for non-
compliance with federal Sex Offender Registration and
Notification requirements; the penalty was expected to be
between of $65,000 to $90,000. Additionally, DPS was
working with the National Highway and Traffic Safety
Administration and the Alaska Highway Safety Office
regarding available Bureau of Highway Patrol funding.
2:33:27 PM
Commissioner Masters spoke to the department's ten-year
operating plan, which included some of the primary relevant
issues facing the department.
Representative Costello asked about the nature of the
noncompliance with the Sex Offender Registration and
Notification system. Commissioner Masters emphasized that
Alaska had a very robust sex offender registration law and
he believed it was doing well in the area. The state had a
two-tiered system that included a lifetime or 10-year to
15-year registration requirement, whereas, the federal
government had a slightly different three-tiered system.
The federal government also required juveniles to register,
but Alaska did not. Additionally, federal law required an
in-person registration requirement; Alaska did require an
initial in-person registration, but the requirement did not
apply to re-registration. The cost of compliance would be
approximately $1 million to $1.3 million per year.
Representative Costello queried whether DPS planned to
continue to pay the fine or meet federal compliance in the
future. Commissioner Masters clarified that the penalty was
not a fine; it was a withholding of 10 percent of Justice
Assistance Grants. His intention was to work with other
impacted departments such as the Department of Law and
Department of Health and Social Services; the concentration
would be on items that made sense and related to public
safety. The department would continue to debate with
Justice Assistance its opinion related to whether or not it
was in substantial compliance with requirements.
2:36:29 PM
Representative Edgmon stressed the importance of VPSOs to
isolated communities. He asked whether there was a summary
of all the current domestic violence programs provided by
state departments. Commissioner Masters replied that the
governor's office had compiled documents related to
Governor Parnell's Choose Respect initiative, but they did
not encompass every piece across departments. He offered to
follow up with the documents.
Co-Chair Thomas equated efforts to combat domestic violence
to fighting a forest fire. He asked DPS to follow up with
information on the total cost spent across departments used
to improve the problem. He wondered whether or not enough
funds were allocated to the issue.
2:38:57 PM
AT EASE
2:47:07 PM
RECONVENED
^BUDGET OVERVIEW: DEPARTMENT OF CORRECTIONS
2:47:20 PM
JOSEPH SCHMIDT, COMMISSIONER, DEPARTMENT OF CORRECTIONS
(DOC), introduced department staff. He discussed that he
planned to provide a department overview including trends,
core services, performance measures, and budgetary items.
He pointed to a PowerPoint presentation titled: "Alaska
Department of Corrections FY 2013 Overview." The DOC
mission that had been written in 2008 was to enhance the
safety of the state's communities, provide secure
confinement, reformative programs, and a process of
supervised community reintegration (slide 2). He relayed
that the department's core services were derived from its
mission statement and included secure confinement and
reintegration.
Commissioner Schmidt detailed that one of the department's
long standing targets was the number of correctional
officer positions filled; the item remained part of the
approach, but the focus had shifted from the end target of
no escapes to how to achieve the goal. He noted that the
topic of no escapes would be discussed later in the
presentation; there had been one escape in January 2011,
but the conviction had not taken place until July;
therefore, it would appear in the FY 12 data.
Commissioner Schmidt moved to slide 3 titled "DOC at a
Glance." Alaska was one of six states that operated as a
unified correctional system, which meant that it oversaw
all misdemeanants and felons; in states that were not
unified, the state was in charge of sentenced felons and
counties, municipalities, and sheriff departments were in
charge of misdemeanants and unsentenced felons. He
explained that when comparing itself to other states it was
important to take the type of system into account. He
relayed that in 2010 DOC had conducted 38,000 offender
bookings of 22,000 individuals; people were often booked
more than once. He expounded that 4,300 of the bookings
were classified as Title 47s or non-criminal commitments,
which constituted a 12-hour hold; individuals who were
brought in due to danger of exposure to the elements fell
into this category. He furthered that there were
approximately 6,000 offenders in prison and approximately
6,000 offenders on probation or parole. He added that
Alaska's DOC ratios were fairly close to those of other
unified states.
Commissioner Schmidt reported that 96 percent of the
department's positions were filled; there were currently
1,511 staff. There were 12 facilities statewide and one
out-of-state facility in Hudson, Colorado. The Colorado
facility had capacity for 1,050 and currently housed 1,048
inmates. There were 13 field probation offices, 15 regional
jail contracts, 6 community residential centers (halfway
houses), and electronic monitoring programs in 7
communities.
Representative Joule referenced regional jails and asked
about progress on the Kotzebue contract jail. Commissioner
Schmidt would follow up with the committee following a
February 7 meeting on the topic. He added that the
department wanted to find movement where it could on the
issue and to make things work. He furthered that many
budgetary issues had been worked through, but that some
questions still remained.
2:52:01 PM
Commissioner Schmidt pointed to DOC core services on slide
4. Core Services included providing secure confinement;
there were 12 in-state correctional facilities with a
maximum bed capacity of 3,840 beds. He noted that capacity
was divided between maximum and general. Maximum capacity
was determined by taking all general population beds and
half of the special-use beds (e.g. segregation beds or
other). He noted that it was preferable to have some level
of empty beds to prevent having "to move someone to move
someone"; some facilities were completely full on occasion
(e.g. Bethel and other locations). He reiterated that the
out of state Hudson, Colorado contract was for a maximum of
1,050 inmates. He explained that as the department became
closer to opening the new Goose Creek Correctional Center
(GCCC), inmates would begin coming back in the second or
third quarter of the next fiscal year. Once additional
progress had been made on the facility it was likely that
some instate inmates would be moved into GCCC because the
state was at its maximum capacity in the Colorado facility.
Colorado had laws designating the type of prisoner that
could be sent to its prison; therefore, Alaska was "getting
tight" on who it could send; the state was pushed into
sending shorter term prisoners to the out-of-state
facility, which resulted in a transportation and a reentry
problem because prisoners did not get back to Alaska in
time for reentry services.
Co-Chair Stoltze asked whether there were other contract
facilities and if so how many. He referred to a police
officer who had been convicted of "heinous crimes" and
surmised that he would not have been placed in a general
prison population. Commissioner Schmidt responded that
there were currently 17 prisoners in contract prisons out
of state.
Co-Chair Stoltze wondered where the contract prisons
appeared in the budget.
LESLIE HOUSTON, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF CORRECTIONS, replied that the
budget item was included in the out-of-state contract
component along with the Colorado contracts. The budget
item was approximately $24 million; $23.4 million was for
the Colorado contract and the remainder paid for the
additional various contracts. She elaborated that in
addition to high profile prisoners, there were some
seriously ill prisoners who were housed in a special needs
prison in Shelton, Washington.
Commissioner Schmidt continued to discuss core services on
slide 5. In relation to the department's "provide
supervised release" strategy, there were six community
residential centers (halfway houses) with 789 beds. He
noted that halfway houses allowed for housing, employment,
and sober support, which were the most important items when
it came to an individual's reentry into the community; the
chance of recidivism was greatly increased if one or more
of the items were not addressed. Offenders were not placed
in halfway houses because they were less expensive than
jail beds; they were used as an appropriate measure to
provide reentry service and additionally helped to reduce
overcrowding issues in jails. The department housed 13
regional adult probation offices, and 7 communities with
electronic monitoring with the capacity to support up to
385 offenders; the success rate was approximately 90
percent. The electronic monitoring had been expanded and
was currently beginning in Barrow; the service had been
used with 130 offenders in 2008 and was currently
supporting 350 offenders. The current budget would use
program receipts to fund a couple of staff positions; the
goal was to increase the number of offenders on electronic
monitoring to approximately 380. He added that the program
was very inexpensive to operate.
2:56:45 PM
Commissioner Schmidt addressed DOC reformative programs
including, substance abuse treatment, sex offender
management, vocational education, education, domestic
violence, faith-based reentry, and mental health services
(slide 6). The department's studies showed that 92 percent
of people in custody had issues with substance abuse. He
noted that a person's substance abuse problem was not
always the reason they committed a crime. He relayed that
DOC had a sex offender management program at the Lemon
Creek Correctional Center in Juneau and was hoping to
implement another program in a location that had not yet
been disclosed. He furthered that DOC had implemented an
innovative treatment program in the Bethel halfway house;
the program helped prevent offenders from being "trapped"
in Anchorage on a waiting list. He added that the
department was considering expanding the model to domestic
violence.
Representative Gara wondered whether substance abuse
treatment programs were offered for different time periods
(i.e. 30 days to 6 months) based on prisoners' needs.
Commissioner Schmidt deferred the question to Deputy
Commissioner Carmen Gutierrez. He noted that the average
prisoner stay was between 120 and 160 days. In the past the
department had one long-term program that had been
shortened to 6 months; any new programs were between 90 and
150 days in order to bring them into alignment with the
average prisoner stay.
CARMEN GUTIERREZ, DEPUTY COMMISSIONER, DEPARTMENT OF
CORRECTIONS, answered that the treatment programs were not
one-size-fits-all. She explained that there were two
separate treatment programs that were provided based on
inmate risk assessment and substance abuse assessment
screening: (1) a 90-day program for short-term treatment
and (2) a program at Highland Mountain female prison and an
out-of-state Residential Substance Abuse Treatment (RSAT)
program in Colorado that lasted six months or more. The
goal was to coordinate the treatment to end close to the
time of an inmate's release date. There were after care
programs available in Anchorage and Fairbanks, given that
research showed that after care increased the effectiveness
of the treatment programs.
Representative Edgmon shared that he along with other
committee members had toured the Goose Creek Correctional
Center in October 2011. He observed that half of the
facility was built to house prisoners and the other half
was to provide special programs. He wondered how much the
new facility would increase the department's statewide
capacity to implement treatment programs (i.e. front-end
services/the "Jerry Madden" model).
Commissioner Schmidt replied that GCCC would allow for some
increased program capacity. Prisoners incarcerated for more
than one year would probably be sent to a facility such as
GCCC and back to a facility near home when they neared the
end of their stay (with treatment needs already met). The
department was currently using the Colorado facility in the
same way; with the opening of the new facility there would
be a great increase in-state, but inclusive of the Colorado
facility it would not be a great increase overall. The
department was currently assessing how large the program
plan should get; there was capacity for approximately 1,000
per year. Criminality had not been solved but recidivism
rates had been reduced as a result of treatment programs.
3:03:22 PM
Representative Edgmon surmised that the additional space
that GCCC would provide would enable room for programs such
as vocational education and other that had not been
possible before. Commissioner Schmidt responded in the
affirmative related to vocational education.
Ms. Gutierrez added that the goal of GCCC was to provide a
living environment where prisoners were required to accept
responsibility for themselves; they would be required to
get meals, medications, mail, and other. To the fullest
extent possible the prisoners would be employed; the space
would allow the department to offer a variety of vocational
education programs that would provide prisoners relevant
job skills to use upon their release. The department was
currently working to identify the most appropriate
vocational training for the facility.
Commissioner Schmidt directed attention back to DOC core
services on slide 6. He touched on educational programs and
the importance of General Educational Diplomas (GED). He
listed other programs including domestic violence, faith-
based reentry, and mental health services. He relayed that
18 percent to 20 percent of the prison population was
chronically mentally ill.
Representative Joule observed that frequently a court order
required prisoners to complete substance abuse, domestic
violence, sex offender, or other treatment programs; until
recently treatment services had not been available in
Alaska's prisons. He discussed that prisoners released in a
location other than their community who were required to
complete a treatment program to fulfill a court order were
often faced with needing to find finances to pay for their
travel home. Many families did not have funds to pay for
travel; therefore, individuals were placed in precarious
positions. He wondered whether the issue had been solved.
Commissioner Schmidt agreed that the issue was a problem.
He relayed that the department was proud of the Bethel
model [where offenders were provided treatment in a halfway
house]. He stressed that when individuals were released
away from home without the required treatment the risk of
re-offense while waiting to get into treatment was close to
100 percent because housing, sober-support, and jobs were
not an option. An expansion of the Bethel model to other
communities would help solve the problem when treatment in
prison was not an option.
Ms. Gutierrez added that DOC was aware of the untenable
situation facing rural Alaskans who were released from
custody with court order conditions that made it impossible
for them to return to their communities. She expounded that
the department employed one probation officer who worked on
release plans; the officer contacted communities to
determine whether it was safe for an individual to return
while waiting for admittance into a treatment program.
Often times it was not possible for a person to return home
safely because a victim may reside there or due to a lack
of support or other. She elaborated that when the
individuals ended up in an urban area (e.g. Anchorage or
Fairbanks) with no support or experience, they typically
ended up in a homeless shelter and reoffended for drinking
or other; at that time an individual was placed back into
custody and was put at the bottom of the waiting list for
treatment. In order to address the serious problem the
department had increased the number of community providers
particularly for sex offender community-based treatment;
the previous wait for treatment in Anchorage had been one
year, but it was currently down to 30 days. She furthered
that in some other communities there were no longer waiting
lists.
3:10:59 PM
Commissioner Schmidt followed up that the department would
look into purchasing plane tickets for former inmates
following the completion of the required treatment program.
Representative Neuman asked for detail on any current
vocational education programs that were offered in prisons
throughout the state. He wondered about the percentage of
inmates who were provided the opportunity to participate in
the programs. Commissioner Schmidt would get back to the
committee with the information.
Representative Neuman asked how many facilities offered
vocational education. Ms. Gutierrez replied that there were
no vocational training programs at facilities that were
primarily pretrial (e.g. the Anchorage Complex); however,
the majority of the facilities housing sentenced offenders
had programs. She detailed that the Palmer facility had a
carpentry program. Additionally the department was working
on creating a welding program (similar to one offered in
the Colorado facility), there was a small engine repair
program in northern Alaska, a net mending class in two
institutions for fishermen, a materials maintenance
program, and other. She relayed that the programs were all
listed on the DOC website; the department would provide the
committee with a comprehensive program list.
Commissioner Schmidt pointed to mental health services
offered by the department. There were approximately 1,200
new referrals per month statewide; 42 percent of the
prisoners were mental health trust beneficiaries and 18
percent to 20 percent had chronic illnesses such as bipolar
disorder or schizophrenia. He believed that the department
was the biggest mental health provider in the state.
Representative Gara asked whether there would be a material
improvement in any of the treatment programs when comparing
the current Colorado facility with the Goose Creek
facility.
Ms. Gutierrez replied that the RSAT program in Colorado was
very high quality; it was the department's goal to have
superior vocational education and faith-based re-entry
programs. Currently DOC was not considering a sex offender
treatment program at GCCC and there was not an existing
program at the Colorado facility. The agency believed that
overall Goose Creek would provide greater services to a
greater number of inmates.
Representative Gara asked whether any other programs would
be superior at Goose Creek aside from vocational education.
Ms. Gutierrez answered that education would also be
superior. She explained that currently the Hudson
Correctional Center was not obtaining the number of GED
graduates that were achieved in the in-state prison system.
Commissioner Schmidt addressed performance indicators on
slides 7 through 9. The department worked to achieve
secured confinement with no prison escapes; there had been
one prisoner convicted of escape in the beginning of 2012.
Another goal was to decrease the number of special incident
reports; the reports were filed when inmate misbehavior was
above and beyond normal levels (e.g. staff were harmed or
another prisoner was harmed). He detailed that the number
had decreased from 70 incidents in 2009 to 66 in 2010.
Commissioner Schmidt highlighted supervised release goals
on slide 8. The department was working to increase the
percent of probationers and parolees who satisfy their
court ordered conditions of release. During FY 11 1,820
offenders were discharged and 48.5 percent met requirements
established by courts; the statistic had not been
calculated in the past and DOC hoped to improve the number
the following year. The new statistics were aimed at
helping the department identify areas that needed
improvement. Efforts were underway to reduce the criminal
recidivism rate; according to a 2007 judicial council
study, recidivism was defined as a person who reoffended
within three years of their release date. He furthered that
currently the first participants in the program plan had
been out of jail for two years; the number would be more
meaningful the following year for comparison purposes. The
percentage of felony offenders re-incarcerated within three
years had been decreased from 50 percent in 2007 to 49
percent in 2008. He noted that the people released in 2008
marked the beginning of the program; therefore, the
department expected the number to decrease when data was
available in the future.
Commissioner Schmidt discussed reformative programs on
slide 9. The number of offenders who completed an
institutional or community based substance abuse treatment
program increased from 424 in FY 10 to 719 in FY 11. Under
a containment management program the number of sex
offenders who received a polygraph [while on probation]
increased from 383 in FY 10 to 454 in FY 11. Sex offenders
were contained and modeled and the department worked to
make sure that behavior was not repeated.
3:18:34 PM
Commissioner Schmidt continued to discuss reformative
programs on slide 10. He addressed work to increase the
number of offenders who receive a GED while incarcerated;
the number had gone from 247 in FY 10 to 254 in FY 11. He
remarked that the number had been in the 180s a couple of
years earlier and that the department was proud of the
improvement. Inmates who completed the faith-based
rehabilitative program had increased from 36 in FY 10 to 44
in FY 11. He communicated that the faith-based programs
were not scientific; therefore, performance data was
difficult to compare with other programs.
Commissioner Schmidt pointed to DOC goals (slide 11), which
included, protection of the public, reduction of
recidivism, delay the need for the construction of a new
prison for sentenced offenders (he pointed to talk that
Goose Creek would cost $50.5 million per year. Every year
the department could put off running another facility was
another $50 million not spent on incarceration), ensure
that incarcerated offenders spend their time in custody
productively, and work collaboratively with outside
stakeholders to achieve the goals (e.g. work with Anchorage
police, the Department of Health and Social Services
(DHSS), and other). He noted that DOC had revamped its
internal medical system.
Commissioner Schmidt directed attention to challenges on
slide 12. The department worked to meet operational needs
around the clock; it did not have control of who came in
the door or over inmates' health. He stressed that DOC
needed to stay dynamic and make fiscal changes as needed on
an annual basis. He reiterated the importance of community
based resources that offered sober support, housing, and
employment to released offenders. He relayed that Ms.
Gutierrez worked with communities to locate different
resources and on the five-year reentry plan; 95 percent of
offenders would be released into communities and the more
the public was involved the better. He touched on the need
to conduct necessary maintenance on aging facilities.
Electronic records were important as DOC compiled its
program plan. He explained that the interfacing of computer
systems was always challenging.
Commissioner Schmidt turned to additional challenges facing
the department (slide 13). Medical care costs the prior
year were approximately $40 million; as a result the
department conducted a dismantling of the system to examine
all associated costs. The approval process for outside
medical treatment had been significantly decreased. He
furthered that it was the first year he could remember that
the department was not requesting a supplemental for
medical expenses. He noted that the issue had not been
solved, but he believed DOC was on the right path. He hoped
that work with DHSS would result in external improvements
such as Medicaid billing for halfway house occupants and
other. The department would detail internal changes in
budget subcommittee meetings during the current legislative
session and would address remaining issues including
increased efficiencies and alternative ways to pay for
medical costs.
3:22:58 PM
Representative Costello believed that inmates were
prohibited from traveling with prescriptions and as a
result DOC pharmacists were filling prescriptions more than
once for the same inmates when individuals were transferred
to long-term correctional facilities. She believed
prescriptions were purchased in bulk from manufacturers.
She believed there was waste of pharmaceuticals and that
the situation presented a burden to the limited number of
DOC pharmacists. She wondered whether the department was
looking at the issue to save costs.
Commissioner Schmidt believed prescriptions went with
inmates when they were transported, but he would follow up
with a detailed response. He detailed that the department
had begun to provide a one-week supply of medication
(particularly in the mental health area) because it would
have been thrown away and going off medication would cause
more problems and recidivism; there was a cost to the
strategy and in order to prevent a waste of prescriptions,
medicine was used for other inmates when possible.
Ms. Houston added that DOC had improved its storage of
pharmaceuticals. She agreed that the department would get
back to the committee with an answer.
Commissioner Schmidt pointed to two pie charts on slide 15
related to the percent of offenders based on their length
of stay. He communicated that in December 2002, 52 percent
of inmates were in jail for six months or less; the number
had been reduced to 38 percent in December 2011. He
clarified that the slide only showed a one-day snap shot.
The number of inmates in jail for three years or more had
gone from 6.94 percent in 2002 to 23 percent in 2011. He
did not have detail on what had caused the change, but
noted that program plans were built around the average
sentence length. He provided a one-day snap shot of
percentage of inmates sentenced for violent versus non-
violent crimes on slide 16. The non-violent number had
increased from 42 percent in 2002 to 62 percent in 2011. He
communicated that the bad news was that expensive prison
beds were being used for a large number of non-violent
inmates; the good news was that the non-violent criminals
could usually be placed in other community-type placements.
Commissioner Schmidt turned to slide 17 titled
"Institutional Inmate Population 2002 - 2020," which
included a chart depicting how the population lined up with
the number of prison beds. He explained that the red line
illustrated the number of prison beds; there were not
enough beds for the population, which resulted in the need
for an out-of-state contractor. He related that when the
Goose Creek facility opened there would be a few more beds
than inmates; however, in 2015 or 2016 the system would be
out of prison beds again. He expounded that another prison
would not need to be "on board that day," but it did mean
that discussions about a prison would be necessary; he did
not look forward to the issue. The need for extra prison
space could be pushed out further into the future if
recidivism rates were addressed and decreased even
minimally.
3:28:44 PM
Ms. Houston outlined FY 13 operating budget changes on
slide 18 (shown in millions):
· Salary and Health Insurance Increases $ 1,961.6
· Maintain Current Level of Services $ 2,487.4
· New Initiatives $29,182.6
· FY12 August Fuel/Utility Reversal ($ 720.0)
· One Time Item Reversal ($ 630.0)
Co-Chair Stoltze wondered how much of the $29 million for
new initiatives was not directed at the Goose Creek
facility. Ms. Houston replied that the request for Goose
Creek was $29.1 million.
Co-Chair Stoltze observed that the entire amount under new
initiatives was designated for Goose Creek and requested
more transparency in the future. Commissioner Schmidt
affirmed.
Ms. Houston pointed to FY 13 capital changes on slide 19
(shown in millions):
· Maintain Current Level of Services $6,000.0
o Annual Facility Maintenance & Repairs
o Deferred Maintenance Projects
· New Initiatives $5,250.0
o Goose Creek Correctional Center FFE
o Information Technology Disaster
Recovery & Novell Replacement Projects
Representative Gara pointed to slide 13, which showed that
medical costs in Anchorage had increased by 46 percent
compared to a nationwide increase of 27 percent. He
referred to a recent Medicaid presentation that had shown
that per patient costs would increase drastically. He
stressed that rising health care costs were impacting
numerous state agencies the increase was one of the biggest
drivers of future budget problems facing the state. He
noted that the reasons for the dramatic increases were not
apparent and that an answer could only come from the health
care industry. He remarked that an increase of stricter
laws designating more crimes as felonies was responsible
for the increase in non-violent, incarcerated offenders who
were serving longer jail sentences. He stated that the
increase would cost the state more money.
Co-Chair Thomas commented that with the combination of
declining revenue and oil production and an average budget
increase of 7 percent annually, the state would be in a
deficit in two years; therefore, the legislature was urging
departments to keep their budgets down.
3:32:10 PM
AT EASE
3:36:48 PM
RECONVENED
^PRESENTATION: ALASKA MENTAL HEALTH TRUST AUTHORITY
DR. WILLIAM DOOLITTLE, BOARD MEMBER, ALASKA MENTAL HEALTH
TRUST AUTHORITY (AMHTA), introduced staff and trustees. He
communicated that program details would be provided in
depth during finance subcommittee presentations. [A
PowerPoint presentation was on hand titled "House Finance
Committee FY 13 Budget; Alaska Mental Health Trust
Authority" (copy on file).]
LARRY NORENE, TRUSTEE, ALASKA MENTAL HEALTH TRUST
AUTHORITY, referred to a legislative resolution from two
years earlier that had encouraged the trust to develop its
resources in order to increase income it could contribute
to the budget for mental health issues. He furthered that
trustees had learned several years earlier that income was
declining; the discovery had coincided with a discussion
related to future mental health needs.
Mr. Norene elaborated that the permanent fund had not been
producing, Trust Land Office (TLO) income was declining,
the population was aging, and a decline in state revenue
was possible. Trustees had determined that a change in
direction was necessary in order to provide income to meet
current spending and future beneficiary needs. He detailed
that with a new TLO director the work was well underway.
Trustees were pleased with progress in all areas; resource
managers for oil, gas, minerals, timber, real estate, and
coal were producing. Progress made was giving trustees a
"glimmer of hope" that the trust could potentially
contribute its share of funds in the future. The impetus
for trustees' concern was the decrease in income combined
with the projected need shown in the AMHTA annual report.
The trust was underweight, but it was considering a number
of resource development projects including investments in
income producing properties versus current raw land
investments that were more of a liability than an asset.
Co-Chair Stoltze asked for a history of the litigation and
how components of the settlement fit together.
3:44:24 PM
JEFF JESSEE, CHIEF EXECUTIVE OFFICER, ALASKA MENTAL HEALTH
TRUST AUTHORITY, gave a brief history of the program. He
explained that when Alaska was working to become a state
the question of how to pay for an existing hospital that
treated mental health patients arose in conjunction with
the fact that the state did not like the existing system
and wanted to create its own mental health program.
Congress had passed the Mental Health Enabling Act and
along with it came some cash that built the original Alaska
Psychiatric Institute and a motel in Valdez for people with
developmental disabilities; federal revenue was provided,
which diminished over an eight-year period to wean the
state off of the federal funds; the first and only mental
health land trust in the nation was created. He provided
additional history related to the development of the trust.
There was a settlement in 1995 that resulted in a $200
million cash endowment and a reconstituted 1 million acres
of land. The money was managed by the Alaska Permanent Fund
Corporation and the TLO managed the trust's natural
resources; the income from the land was the trust's funding
source used to assist with mental health programs.
Co-Chair Stoltze queried the legal obligations the trust
had that were different than other land management groups.
Mr. Jessee explained that trustees had a primary obligation
of loyalty to trust beneficiaries. The mission was to
maximize revenue from the trust's natural resources and
other assets over time. Managers of normal state land often
considered multiple public needs and uses that may be
different than revenue generation; a discount may also be
given to an industry for a particular asset in order to
create jobs. He reiterated that the trust's goal was to
maximize revenue to the trust for services to the
beneficiaries.
3:48:01 PM
Co-Chair Stoltze concluded that when weighing the needs of
providing a program, a judge may look at providing for
something like Fetal Alcohol Spectrum Disorder versus a
neighborhood view shed concern.
Mr. Jessee replied in the affirmative. He added that the
trust also endeavored to be a good neighbor. For example,
the trust worked to trade sensitive lands - that could
cause difficulties such as landslides next to homes - with
other less sensitive lands with resources.
Co-Chair Stoltze asked what type of view the trust took
related to length of investments. Mr. Norene responded that
the trust was perpetual and took a very long-term view. He
furthered that private foundations and other were required
to "spend things off," but the trust was only looking for
growth and income; it was in the process of developing a 5-
year investment strategy for internal use.
3:49:38 PM
Co-Chair Thomas asked whether sensitive lands traded to
AMHTA for development represented a good deal related to
resource management. He expressed concern about the logging
of primarily old-growth forest compared to second-growth
areas.
MIKE BARTON, TRUSTEE, ALASKA MENTAL HEALTH TRUST AUTHORITY,
answered that lands consisted of a full range of age
classes including some old-growth and different stages of
second growth. He expounded that the old growth would be
immediately available for harvest and second-growth would
come on while the old-growth was developed. He opined that
there were many definitions of a good deal. He stated that
there was much more value in the standing timber located on
lands given up by the trust; however, because of the
surrounding controversy, he believed there was a legitimate
question related to how much of the sensitive land would be
available for development and in what timeframe it would
occur.
Co-Chair Thomas stated that people still believed logging
was negative. He discussed that areas of his district had
experienced significant logging compared to other more
urban areas such as Juneau. He was sensitive about further
harvesting of resources in his district despite the fact
that jobs would be created. Mr. Barton commented that the
entire area on each side of the Gastineau Chanel in Juneau
had been clear-cut at one point.
Co-Chair Thomas noted that the harvesting had occurred
during the past mining days. He stated that there had been
no logging in the Juneau area since around 1978. He wanted
to be comfortable with the strategy going forward.
3:52:36 PM
GREG JONES, EXECUTIVE DIRECTOR, MENTAL HEALTH TRUST LAND
OFFICE, DEPARTMENT OF NATURAL RESOURCES, responded to a
prior question related to the trust's future plan. He
explained that the five-year plan was built on 20-year
financial projections. Trust activities had "ramped up"
significantly in the past several years and included
minerals, timber, real estate, and oil and gas. Many of the
projects were high profile including the Chickaloon coal
lease sale, which had received strong industry interest.
Other projects included an underground coal gasification
project that was currently underway, and work with a mining
company interested in obtaining the Chuitna Coal Project,
and coal leases in Healy and Sutton with Usibelli Coal
Mine.
Mr. Jones continued to list current AMHTA projects
including work on the Fort Knox gold mine to expand the
area and extend the life of the mine out to 2021,
International Tower Hill Mines was working in an area with
gold deposit that was in the top two percent in the nation,
and a 212-acre lease had been issued for a mine in Salcha.
The trust was working with Buccaneer on a new gas field in
Kenai that was already producing royalties. Efforts were
also underway with other oil and gas companies including
Apachee, Cook Inlet, and Aurora on exploration, drilling,
and production. The real estate focus was to sell some of
the trust's non-performing assets (valuable lands without
development capability), create investment property, and to
purchase income property. The trust had purchased an office
building in mid-town Anchorage and was working with a
Fortune-500 company on a single-tenant lease. He briefly
touched on timber investment; AMHTA was working to create a
land exchange with the U.S. Forest Service in order to move
away from communities concerned about their view sheds
while simultaneously not damaging the trust's ability to
generate timber revenue. He stressed that with close to $40
million in revenue, timber had been the largest contributor
to the trust since the settlement; it had averaged at
almost $3 million per year, which would change if the
exchange was not conducted.
3:56:46 PM
Representative Gara appreciated the way the trust had
worked with communities near mines with one exception. He
stated that the Chuitna project currently included a
proposal to dredge up 11 miles of salmon-bearing habitat
connected to the Chuit River. The project that would ship
coal to China was opposed by the residents of Tyonek. He
asked trustees to work with a contractor on a proposal that
did not involve dredging up the salmon stream. He
understood that the trust believed the habitat could be
rebuilt; he stated that salmon streams were not like Dorito
chips - it was not possible to just make more. He
reiterated his hope that the trust could find an
alternative. He added that commercial fishermen in Cook
Inlet had gone on the record opposing the project.
Mr. Jones replied that the trust was concerned about the
issue as well and had been working with a contractor and
the community. The trustees had traveled to look at
successful methods for rebuilding habitat at existing mines
in the Lower 48 and Alaska. He agreed that salmon streams
could not just be recreated, but there were successful
examples. He furthered that the trust was taking a close
look to determine whether the proposal could achieve a
successful outcome related to the salmon habitat. He
relayed that the trust would be against the project if a
successful outcome was not possible. Trustees were
currently working with the U.S. Army Corps of Engineers to
establish the conditions of the return of the land to the
trust upon completion of the project.
Representative Guttenberg wondered what condition the
proposal specified the land should be in upon its return to
AMHTA. Mr. Jones answered that the proposal was for the
land to be returned as forestry silvaculture lands. He
elaborated that the creek would be replicated during the
mine and when the land was returned the original stream
would be put back with the replicated creek left in place.
Representative Guttenberg communicated that he was
interested in seeing how the proposal compared to rivers
that had been reclaimed in the past.
Co-Chair Stoltze compared the issue to the Pebble Mine
[another controversial mine proposal in Alaska]. He asked
about the trust's land responsibility and how it fit into
the overall mission.
Mr. Jones replied that the trust took a very long-term view
[on land management]. He detailed that the principal assets
of the trust could not be disposed of without being
reinvested; principal assets could not be used to fund
programs or any other overhead. He furthered that the trust
remained intact and that if land would be returned, AMHTA
wanted to ensure that there would be an economic use for
it; in the case of the Chuitna mine it would be 30 years in
the future. The trust routinely discussed what land would
be worth in 100 years.
4:01:31 PM
Representative Doogan referred data on slide 6 of the
presentation. He wondered whether the $24.6 million in
distributable income was the trust's target or an
expectation. Mr. Jones responded that the $2.4 million TLO
income shown on the slide was currently over $4 million.
The total projection was calculated on a formula for
withdrawals from the investment fund plus the TLO income.
He believed AMHTA did a relatively precise job with
forecast estimates based on known activities and balances.
Representative Doogan inquired whether $25 million was what
the trust hoped to get or what it expected to get. Mr.
Barton replied that the $24.6 million was what the trust
expected to get and did not represent a target.
Co-Chair Stoltze surmised that the trust's goal was to
increase the TLO income through investment in additional
gold and coal mines and oil and gas leases. He had heard a
universal request from beneficiaries - who understood that
there was a legal and moral obligation to the budget and
settlement - to please let them stand on their own feet.
Mr. Barton agreed that the intent was to grow the total TLO
income as quickly as possible.
Mr. Jones added that the TLO was one of the most malleable
and manageable areas. The trust had worked hard in the past
1.5 years to focus on income and to increase its number of
resource projects.
Co-Chair Stoltze expressed that he would love to hear
success stories and that AMHTA had been allowed to use the
tools provided by the courts. He recalled the work and time
it had taken for the trust to get to its current point. He
stated that the goal was to provide beneficiaries with the
tools to help themselves and to adhere to the legal
obligations specified by the settlement. He would be happy
to hear that there were no waitlists for people with
disabilities and that the necessary programs were
available.
4:07:33 PM
Mr. Jones recalled that when he started in 2010 he had been
given the mission to increase income and maximize the value
of resources. Currently there were 1,000 jobs on trust land
throughout the state. He surmised that within the next five
years there would be 2,000 jobs on trust land.
Mr. Jones relayed that trustees were open to any questions
from the committee.
Co-Chair Stoltze believed there was currently an alignment
of interest and opportunity related to the trust. He shared
that he would love for beneficiaries to have coal and gold
mining, land rental royalties, and other. He had tried to
be consistent on his message related to the issue. He
thanked the trustees for their work.
ADJOURNMENT
4:10:59 PM
The meeting was adjourned at 4:10 PM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| MHTA-HFIN Budget Overview FY13 020112.pdf |
HFIN 2/2/2012 1:30:00 PM |
|
| FY2013 DOC Department Overview.pdf |
HFIN 2/2/2012 1:30:00 PM |
|
| DPS HFIN Budget Overview FY13-020212 PDF.pdf |
HFIN 2/2/2012 1:30:00 PM |
|
| DPS Overview Stoltze Handout 020212.pdf |
HFIN 2/2/2012 1:30:00 PM |