Legislature(1997 - 1998)
02/13/1997 09:05 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
13 February 1997
9:05 a.m.
TAPES
SFC-97, #35, Side 1 (000 - 592)
Side 2 (592 - 000)
CALL TO ORDER
Senator Drue Pearce, Co-chair, convened the meeting at
approximately 9:05 A.M.
PRESENT
In addition to Co-chair Pearce, Senators Sharp, Phillips,
Donley, Torgerson and Adams were present when the meeting
convened. Senator Parnell arrived shortly thereafter.
ALSO ATTENDING: Senator Jerry Ward; Annalee McConnell,
Director, Office of Management and Budget, Office of the
Governor; Sharon Barton, Director, Division of
Administrative Services, Department of Administration; Dugan
Petty, Director, Division of General Services, Department of
Administration; Robert Cole, Director, Division of
Administrative Services, Department of Corrections; Janet
Clarke, Director, Division of Administrative Services,
Department of Health and Social Services; Mike Greany,
Director, Division of Legislative Finance; Susan Taylor,
fiscal analyst, Division of Legislative Finance; and aides
to committee members and other members of the legislature.
VIA TELECONFERENCE: Brant McGee, Public Advocate, Office of
Public Advocacy, Department of Administration; Barbara
Brink, Acting Director, Public Defender Agency, Department
of Administration; George Buhite, Director, McGlaughlin
Youth Center; Greg Thompson, Director, Fairbanks Youth
Facility; Mark Johnson, Chief, Community Health & Emergency
Medical Services, Division of Public Health, Department of
Health and Social Services.
SUMMARY INFORMATION
FY 97 supplemental requests for Departments of
Administration, Corrections and Health and Social Services
were discussed by the above-listed individuals. Co-chair
Pearce announced the meeting would be recessed until Monday
morning at 8:30 a.m. The committee will continue hearings
on the supplemental requests.
SENATE BILL NO. 83
"An Act making an appropriation for management fees for
the constitutional budget reserve fund (art. IX, sec. 17,
Constitution of the State of Alaska); and providing for
an effective date."
Co-chair Pearce convened the meeting at 9:05 a.m. She
explained the use of SB 83 as the working vehicle to fold
supplementals into.
Annalee McConnell, Director, Office of Management and
Budget, was invited to join the committee. She felt there
had been significant changes both in terms of how the
Legislature has viewed the supplementals and the
Administration throughout all the departments. They do
realize however there will have to be some supplemental
items. There still are some issue areas to be addressed in
whether they are funded in the spring as part of the main
budget bill or in the supplemental process; and an issue of
timing. Part of the concerns she heard from legislators was
not wanting to see departments continue to expend during the
first part of the year on the assumption there would be
supplementals received to allow them to keep up that level
of spending. It is important to clarify for departments and
the public whether or not it is expected to have a level of
supplemental funding for some items or not. She referred to
a back-up sheet in the form of a transmittal letter which
organized the areas of the supplemental request in several
categories. Type one were the items they knew would be
underfunded by choice in the legislative process last year;
type two were the judgments and claims typically handled in
the supplemental; type three were items they were not aware
of where the urgency changed between what was known last May
and the present time.
Under the first group, the ones acknowledged to be reading
supplementals to carry out the full year; the leasing
budget, public defender, adult public assistance, etc.,
totalled about $8.5 million. These were areas based on
projections that would require a higher level of funding.
In some case the Legislature chose to put intent language
into the bill to acknowledge there would be a need for
additional funding later on. The information coming back
does confirm where we are and what the estimates have been
in the prior part of the budget process. There are two
areas, disaster relief and fire suppression where there has
been a pattern of only partial funding in the main budget
bill. The Legislature appropriately felt there was a need
for some real heavy duty work on close-out of old disaster
accounts. That has now happened. Most of the costs of the
southcentral flood were handled by closeouts of old disaster
accounts. The next stage in the process, is taking a look
at whether there is a need for dealing with disasters in a
different manner in the main operating budget. It would be
appropriate to consider in the FY '98 process whether the
basic costs of disaster and fire should be covered as part
of the regular GF budget. As mentioned, there is no need to
change the process in judgments and claims as it is
appropriately handled in a supplemental process. On the
sectional handed out today, it has been noted that
additional judgments and claims have been received in the
amount of $25,900 and formal documents will be submitted
later. "Cleary" has been estimated through the end of the
fiscal year and as the Governor indicated in his transmittal
letter it was their recommendation that appropriation could
best be handled in a fashion that would address the
underlying problem which is overcrowding. This is not an
actual settlement but could be held in some sort of an
account. New information was had this year that suggested a
reason to speed up the schedule and not just wait until the
FY '98 process. An example was the boiler in Fairbanks at
the correctional facility and the issues of security at the
juvenile facilities both McGlaughlin in Anchorage and in
Fairbanks. There have been some serious problems just
within the last couple of months. With legislative approval
now, the procurement process could begin as soon as
possible. Another example was the Perseverance Trail, which
will be very heavily used by tourists and residents alike in
a couple of months.
She referred further to Venetie that will be coming forward
to deal with the price increases that have resulted in a
significant change in how much of the power cost
equalization program will be funded. At the time the
Legislature took action last spring it was estimated that
PCE would be pro-rated by 85% and based on the fuel prices
it looks like about 67%. Another area being looked at that
is not yet ready for introduction but should be flagged is
the area of the southeast initiative specifically problems
in southeast communities that have been hard hit by the
changes in the timber industry. She had no final details
but just wanted them noted. The ratifications do not have
an actual dollar impact on the budget for '97 but they are
introduced here as part of the package. She said this was
just a rough overview of the process of how what was
determined to be recommended in a supplemental process, with
the hope that the supplementals would move well ahead of the
regular FY '98 so they could be clear with the departments
about funding levels for the remainder of the year.
Senator Adams asked if there were any federal receipts or
unanticipated revenue increases that we should be looked in
to at this particular time from any of the agencies. Ms.
McConnell said there were things going through the LB&A
process and there would be more items coming up at the next
meeting. The only one presently, that is strictly a federal
issue, is the Indian Health Service. Senator Adams asked
if that could be handled in a supplemental rather than LB&A.
Ms. McConnell said that it certainly could be. The process
had been followed where LB&A was authorized to handle
various issues which had been approved at prior meetings.
It was assumed to follow the current practice.
Sharon Barton, Director, Division of Administrative
Services, Department of Administration was invited to join
the committee. She explained that section 1(a) was a
request for $1,018.7 million for the leasing budget. When
it was closed out last spring a shortfall of approximately
that amount was predicted. Having exhausted the
opportunities for making lease-by-lease cost savings the
Division of General Services had focused its' attentions
this year on the opportunities for greater savings, long-
term savings in the lease budget, mainly in a lease-purchase
opportunity, mainly in Anchorage to cut down on the high
rental costs. For FY '97 there will be a shortfall of just
over a million dollars.
Senator Adams asked if the leasing for trooper housing was
covered under this particular section.
Dugan Petty, Director, Division of General Services,
Department of Administration was invited to join the
committee. In response to Senator Adams, he advised it was
covered under their BRU for lease payments on their housing.
Senator Adams asked if it was preferred that this was done
under their own housing supplemental. Mr. Petty said that
over a decade ago authority was delegated to the agencies to
enter into their own housing agreements and pay their own
rental payments. There are no housing or lease payments in
their budget.
Senator Adams asked about the lease/purchase of the Bank of
America building in Anchorage. Mr. Petty said this
supplemental request had no impact on the lease/purchase
agreement.
Senator Sharp asked about the Frontier Building acquisition.
Mr. Petty said the strategy in managing down this fiscal
year's budget at the time the budget was prepared was to
focus on the high costs leases in the largest increments of
space. The averages are in the neighborhood of about $1.50
per square foot. That particular lease was $2.15 to $2.17
per square foot. It is a consolidation of a significant
amount of space that is coming due for replacement in a
couple of years. The strategy in reducing the leasing
obligation was to try and reduce that one in particular in
order to make some significant reductions in the leasing
budget. The focus at the time in preparing last year's
budget was in negotiations with the owners of the Frontier
Building to reach a lease/purchase agreement that would
allow reduction of the lease budget and to bring a package
back to the Legislature. They were not successful and could
not get significant savings. Senator Sharp further inquired
which building it was in November that there was a hot deal
on. Mr. Petty advised that it was the Bank of America
building in Anchorage.
Co-chair Pearce asked if there was a ten-year lease schedule
showing what year which leases and how many square feet were
coming up for lease that could be made available. Mr. Petty
said he would provide it. She further asked whether in the
cost estimates that have been developed on the possible Bank
of America purchase have the penalties for getting out of
any current leases been included in those cost estimates
that are being forwarded. Mr. Petty said they had included
project development costs, which would be tenant
improvement, remodeling costs necessary to make the space
built out for State agencies coming in, and there are some
contingency costs in there that would help negotiate some
buy-outs. Co-chair Pearce asked if any actual penalties had
been figured into those costs. Mr. Petty said they had not.
The strategy would be to be out when the leases expire.
Senator Phillips referred to 1(e) and settling of this
matter. The State of Alaska is a big target and this is
probably one of the most sue-happy states in the country and
he said he is getting tired of funding every wrong that has
been done. He said they should stop encouraging lawsuits.
Mr. Petty said both cases were perfect examples of where the
State was trying to hold the line. They believed the
prudent thing to do was reduce their obligation and the cost
to the State and to reach a settlement. The first of the
two, Juneau One Stop consolidation was a variety of half a
dozen agencies with a new concept of having public
assistance programs from the Department of Labor, programs
from Vocational Rehabilitation aggregate together in one
location. This was part of the welfare reform initiative to
service customers in terms of job training and programs they
provide in one stop instead of them being referred to a
number of agencies through the state. This building was an
existing lease occupied predominately by the Department of
Labor, one of the key groups that would be part of this
consolidation. It was also occupied by the Department of
Health and Social Services, Family and Youth Services. The
strategy to put them under one roof was to take the existing
lease and put them in that lease, requiring us to bid out
replacement space for Family and Youth Services. That is
where the claim occurred. An RFP was put out. The first to
move out was Family and Youth Services and then we had to go
from the Wildmeadow Building. Mr. Petty answered said they
would have to go in and do floor by floor renovation to pull
the consolidation together. The final two were some
additional leases that were at expiration. The people from
public assistance would move into the new lease in the
Wildmeadow Building. An RFP was put out to acquire space
for Family and Youth Services. There were a couple of
competitors and one even had a foundation in the ground.
They basically designed the building based upon the RFP. He
further explained there was a protest and the ensuing
developments. After a review of the protest it was denied
and the commissioner upheld the appeal. After several
hearings and delays that side of the equation when added up
looked like it was a larger number than reaching a
settlement. There were various opportunities to settle but
they were not chosen. At some point it was thought it was
not going to be in the best interest of the State and be
more costly to pursue.
Senator Phillips said he did not know all the details but
this sounded like a ransom was being paid for the
kidnapping. Mr. Petty said he would be happy to provide any
necessary information for the Senator. Senator Phillips
asked if that was the same situation with the Environmental
Conservation land. Mr. Petty said the Environmental
Conservation Lab was a different circumstance and proceeded
to explain. There were some bonds issued by the developer
but this was not a lease/purchase agreement. It was an
operating lease and when it expired we were out. There were
a variety of issues but some of them had to do with the fact
that a haylon fire suppression unit was specified for the
building because it was designed that way by Environmental
Conservation. The contractor, after bidding, came back and
said he wanted to put another system in. There is State has
a strong case even though there may be some liability.
There has been no supplemental because we have been taking
this on through our purchasing budget. The costs associated
with fighting this include RSA's to the Department of Law
for the attorney, expert witness costs and hearing officer
costs. There has been a hearing officer on this case for
several years. He further advised Senator Phillips that
several changes had been made in the procurement law; one
being to put a statute of limitations on claims against the
State so there is not a situation where five years later
someone comes in with a claim. This was one of the issues
that caused us to do that. It is expected to bring this to
conclusion this fiscal year.
Senator Torgerson asked if the contract for the Kenai area
had been awarded. Mr. Petty said his understanding was the
RFP's had not been awarded. Senator Torgerson asked if
there had been a lawsuit filed yet in this matter. Mr.
Petty said to his knowledge there had been no lawsuit filed
over that. Lease procurements, particularly large ones,
typically do not receive an award without being contested.
They are more complicated and complex and there are usually
greater dollars involved. There are more dollars invested
by the preparers of the proposal for the bids to respond to
one of these. Senator Torgerson said the Kenai lease was
let out for square footage. The four or five agencies that
were combining were quite a bit in excess of what they
actually needed with the downsizing of the Department of
Labor. The end result was that the only buildings that
could be bid on this were facilities located in the City of
Kenai and it left out all the other areas in Soldotna unless
they were willing to kick out renters. He said he
protested this approximately a year ago. Three of those
individuals are probably going to file lawsuits. There will
be a lot more of these if the State continues to do business
like that in his district.
Senator Phillips requested Mr. Petty provide a list of
lawsuits for particular situations during the last five to
ten years. Mr. Petty said he would prepare a summary
document.
Sharon Barton continued with section 1(d) requests $317,500
for the Office of Public Advocacy. Last spring a shortfall
in this budget of something over $500,000 was estimated. It
is always a challenge to accurately predict what the
contractual costs will be. This contractual money is
entirely for attorneys, expert witnesses and those
associated with the cases referred to the Public Advocate
that the Public Defender cannot handle. The number was
somewhat reduced from the original projection of something
over $500,000.
Co-chair Pearce, referring to that section, asked when the
Governor's request would come over and Annalee McConnell
characterized some of the sections in this bill, including
the fire suppression section and the leasing section that
had been deliberately underfunded with the expectation from
the Legislature, through either intent language or some
indication that indeed they did expect to see a
supplemental. Quite honestly it had never been heard that
the Office of Public Advocacy or the Public Defender Offices
were to be included in that category. What happened either
on the House or Senate side or the floor when the budget
passed that led to belief that a supplemental this year on
that section was expected.
Ms. Barton said in the materials that were provided in
close-out and conference committee on the lease/budget, the
Public Advocate and the Public Defender was documented that
they were underfunded to such an extent that it was beyond
means to reduce costs in the next fiscal year. As to
agreements by anyone or promises made about supplementals
this year she was not aware of any such commitments by the
Legislature except to say that every opportunity has been
taken to advise that in spite of best management efforts
these are budgets driven by factors beyond control and there
would be need for a supplemental this year.
Senator Donley said a better justification was needed. He
said he wanted to know why it was thought the Legislature
had that state of mind when they passed the budget.
Annalee McConnell said she was the person who put those
words in. Going through the last legislative session and
special session, as indicated by Sharon Barton, this was
presented as an item felt to be unreasonable and impossible
to keep within the amount which was in the initial bills put
together by the Legislature. In some cases there was intent
language, as Senator Pearce mentioned there was the rather
humorous exchange about the leasing budget with Senator
Frank saying "trust me". There were also a lot of
conversations regarding negotiations through the end of the
session to come to a conclusion with respect to the budget.
These were items that were discussed quite considerably with
the chairs of the House and Senate Finance Committees on the
operating sides, Senator Frank and Representative Hanley
where it was discussed to come back for supplementals.
Certainly it is understood about the wording here, in terms
of the expectation. It was very clearly communicated the
necessity for supplementals and the possibility the number
would change slightly. As Ms. Barton indicated it is a
little less than thought. There was very considerable
discussion about the fact that there are some areas of
obligations and the targets that the Legislature hopes to
set cannot always be met.
Senator Donley asked if Senator Frank or Representative
Hanley said it would be o.k. to come back for a supplemental
in these areas.
Ms. McConnell said they obviously did not ask for permission
from the Legislature about what to submit. They submitted
what they believed was necessary to submit. It was
discussed with them on several occasions that there would be
items that they would have to come back for with
supplementals.
(Tape #35 switch to side 2 at log #592.)
Senator Donley asked if anyone conveyed to her they would
support a supplemental. Ms. McConnell said the need to come
back for a supplemental was understood. Senator Donley said
he felt the document was inaccurately worded and the request
was very misleading. Referring to the memorandum that was
attached to the backup the department says the managers of
those programs made every effort to contain or reduce the
costs and asked what was the basis for this statement.
Sharon Barton responded saying in the case of the Public
Advocate Mr. Brant McGee was on teleconference and would
answer questions relating to that office.
Senator Donley said he would prefer Ms. Barton to answer the
question because he wanted to know what her understanding
was when she signed the document representing this matter.
She said her understanding was the Public Advocate had
strictly administered contracts with his private attorneys
and with others in his office who make obligations on behalf
of their agency for expert witnesses, travel, for whatever
contractual costs are associated with the cases. The Public
Advocate does not have the opportunity to make up these
costs by way of holding vacancies within staffing, etc. His
costs are in the contractual line item.
With respect to the Public Defender she indicated it was a
different situation. Those costs were personal services
costs. In spite of the fact the budget was substantially
underfunded and an increasing caseload of 19% for felonies,
which affects both Public Defender and Public Advocate,
overworked staff held positions vacant in eight different
offices throughout the State causing considerable problems
and hardships on the rest of the staff in order to reduce,
what they believed at the beginning of the fiscal year, was
a potential supplemental of $475,000 down to $268,000.
These managers have worked these issues very hard. The
average cost per case in the office of the Public Advocate
is substantially reduced over the years.
Senator Adams said he was not here to debate wording of what
someone said but rather have a constructive debate on what
the new crime legislation that passed has on both of the
agencies. He wants to hear why they need money.
Brant McGee, Public Advocate, Office of Public Advocacy,
Anchorage testified before the committee via teleconference.
He indicated that their costs were mainly driven by caseload
increase involving every category; abused and neglected
children, incapacitated adults and criminal cases. The
volunteer guardian ad litem program in Anchorage has been
expanded in terms of profiting measures to over 120
volunteers. New volunteer guardian ad litem programs have
also been opened in Mat-Su and Kenai Peninsula. With
respect to criminal cases they have continued their
profiting measures with respect to the use of expert
witnesses, travel and witness travel. There is a cost
associated with that, especially in terms of service to
individuals in rural areas. Lawyers are not travelling as
much as they did, but are handling cases telephonically.
There are a significant number of cases folks are able to
pay for services. In that regard the intake of public
guardian cases has been reduced although there are still
substantially increases in that area primarily because of
the aging of the Alaskan population and the increased
awareness among institutions and agencies of the public
guardian option.
Senator Donley asked what percentage of the supplemental
costs reflected increases for criminal services versus non-
criminal. Mr. McGee said he did not know. These were
projected on the basis of different cost categories but they
were not broken down under criminal or civil. In regards to
an earlier statement by Ms. Barton he said they projected
increases associated with caseload increase some $617,00 a
year ago. They have substantially reduced that estimate and
feels that the savings has been through the realization of
cost saving efforts in FY '96 that they have applied to the
FY '97 operation.
Senator Donley further asked if any comparison had been done
in the criminal area of representation with how other states
provide their criminal representation. Mr. McGee said he
was very well aware of how other defense operations manage
case loads in other states, both through contact with
managers in other states and also through national
organizations. The office of the Public Advocate is a
hybrid agency providing a substantial portion of its
representation in major population centers through staff
representation. Most outlying area representation is
handled through contractor services. The differences are
dictated principally by geography and by the fact that
population centers are outside the major cities in Alaska
are not big enough to support the creation of staff offices.
He said that every single case needing criminal defense
representation is a case that comes to them because the
Public Defender Agency has a conflict of interest. Like the
Public Defender all of their cases come to them by Court
orders of appointment. Most of the criminal cases are
handled in Anchorage and Fairbanks by staff lawyers. They
also provide representation in major criminal cases and in
particular homicide cases, throughout the state because they
have found and demonstrated it was cheaper for them to
provide the representation from the central office rather
than hire local contractors for the big cases. For more
routine cases they do have contract attorneys in each
Superior Court location throughout the State. It is through
them representation in the criminal arena is provided.
Senator Sharp said he recalled last year the finance
committee did in fact show strong indications of reluctance
to supplemental funding and some areas were reduced. It was
very clear the intentions of the Legislature to control and
not expand any further the increased costs over the last
five or six years of the Public Defender. It was very
clear as far as this committee was concerned as to what the
direction was regarding the office of the Public Defender
and the Public Advocate. He recalled Senator Donley
stressing his concern about how that had grown in proportion
to the funds available to the District Attorney's office for
prosecutors compared to the increased staffing for the
Public Defender. He wanted to know where the philosophy
came that they were going to entertain supplementals in this
area and encouraged them to come forward with it if it was
required. He said his constituents were increasing
concerned about the Public Defender's office making
available to convicted criminals two public defenders for
appeal cases. He cited specifically an individual convicted
of a heinous crime and the Public Defender provided two
defenders to go all the way to the Supreme Court. These
results were published in a Fairbanks newspaper about a
month ago. Mr. McGee said he could not recall when two
attorneys were assigned to an appeal. Typically, one lawyer
is sufficient to handle an appeal.
Co-chair Pearce said that Barbara Brink from the Public
Defender Agency in Anchorage was on teleconference and could
respond to Senator Sharp's specific questions.
Barbara Brink, Acting Director, Public Defender Agency,
Department of Administration testified before the committee
via teleconference. Specifically, concerning appeals she
explained that it was the policy of the Public Defender
Agency to assign one attorney. Two appellate lawyers are
not assigned. It was typical when a brief was filed the
name of the attorney who actually wrote the brief along with
the name of the attorney who is the head of the agency are
named as required by the appellate rules. She said they
handled less than 300 appeals last year. Senator Sharp
said he would send the article to Ms. Brink because it
clearly stated there wee two public defenders involved in
the case. Whether it was a supervisor or not he did not
know.
Senator Donley referred to the decade 1985 through 1995 the
budget of the Public Defender's office went up an actual 47
per cent, the Public Advocacy office went up 178 percent and
the budget for our prosecutors went up 4 percent. If they
are filing so many more cases and they are successfully
prosecuting that many more with only a four percent
increase, why has it been necessary for the Public
Defender's office to have a 47 percent increase and the
Public Advocacy office to have a 178 percent increase over
the same period of time. He said he did understand a large
portion of the Public Advocacy office's job is not criminal
and would like a breakdown. Mr. McGee said there was
definitely a 178 percent increase but he would note, as
well, the caseload had increased by more than 400 percent
during the same time and they had reduced the average cost
per case by some 36.5 percent over that same period. There
have been significant increases in the budget but they do
not come close to matching the increases being experienced
in caseload. About half of their cases do not have anything
to do with the criminal division or the Department of Law.
They come by way of the Division of Family and Youth
Services and also through other agencies and non-profit
institutions around the state about petitions regarding
children and conservatorships.
Senator Sharp referred again to the office of the Public
Defender and noted the names of the two attorneys involved
in a case in front of the Court of Appeals; the conviction
of a Manley Hot Springs man who beat a man and then told his
teenage son to castrate the victim. The Appeals Court ruled
on Wednesday that Weaver's public defenders, Marcia Holland
and John Salemi failed to show Judge Hodges was biased
against Weaver. He said he did not know if one of those was
a supervisor or not but felt it showed there were two public
defenders. Ms. Brink said that John Salemi was the former
director of the Public Defender Agency and Marcia Holland
was the Fairbanks appellate lawyer. She further noted that
John Salemi did not have any specific input on that case
because he was simply listed on the front page of the
appellate brief as the director.
Senator Phillips asked if there was not a responsibility to
correct the newspaper on that issue. Unless it is corrected
the public reading the newspaper is going to think there
were two public defenders.
Annalee McConnell said she wanted to recall a conversation
last year before the Senate Finance Committee when there was
a possibility of increasing the budgets for the District
Attorney's office. One of the pleas made by the head of the
criminal division was that any increase be balanced with
increases in the Public Defender area because from the
perspective of the District Attorney's office they felt it
was necessary to be sure the Public Defender agency could
keep pace. They recognized a very serious problem with the
Public Defender agency not being able to move forward
because of the limited budget. Another area of cost control
that was discussed last year and is under review, as Brant
McGee mentioned, there is no option of accepting cases as
they are assigned by the Courts. There has been a review
under way about indigency standards, however it is not
expected to have a significant effect. In terms of the
impact of the new crime bills as mentioned by Senator Adams,
there have been areas where the fiscal notes for the crime
bills that were passed by the Legislature were reduced and
so the Public Defender office has one more element where
keeping pace with the laws that are passed is very difficult
if the fiscal notes are not fully funded.
Senator Donley asked if there was an increase in caseload
and the prosecutors were dealing with it with a four percent
increase over the last decade and these two budgets show
this tremendous more than ten-fold increases over what their
counterparts are getting to deal with the same addition to
caseload that the prosecutors are dealing with. Ms.
McConnell said there have been enormous changes in the past
ten years in terms of what is expected under Supreme Court
rulings in terms of the level of defense. This has been a
real burden and it is recognized there is a cost that goes
with it.
Co-chair Pearce referred the committee to section 2,
Department of Corrections $2.3 million. She also advised
sections 4(a) and (b) which tie into Correction's budgets
would be discussed at the same time. Ms. Barton asked about
the EVOS section request but Co-chair Pearce advised that
there were no questions regarding that matter.
Robert Cole, Director, Division of Administrative Services,
Department of Corrections, was invited to join the
committee. He said the Court continued to monitor
overcrowding and other issues with the Department. The
estimate of overcrowding fines for this fiscal year through
June 30, 1997 will likely accumulate to about $2.3 million.
There is an obligation to come forward with a request for
supplemental appropriations, but it was thought rather than
do this for a fine, a general proposition could be put
before the body to appropriate an amount equal to the
anticipated amount of fines to be placed in a corrections
capital account pending a policy resolution by the
Legislature. The Administration would ultimately be agreed
to relieve overcrowding. He realized there were a lot of
issues and different proposals being discussed by various
parties in the Legislature. He said overcrowding and
women's issues particularly needed to be dealt with. He
asked the Legislature's consideration to make a good faith
down payment to be held in abeyance until an agreement was
reached on how to proceed with relieving these issues.
Senator Phillips said he hoped a women's facility did not
replace the Highland Prison. Mr. Cole said that many may
remember last year the department put forth a bond bill
which contained a proposal to reconfigure about 225 beds at
Highland into a women's facility. Contingent on that would
be building space at Palmer for men. The net effect would
be that about 300 beds would be freed up around the system;
Fairbanks, Lemon Creek Juneau, Sixth Avenue Anchorage,
Yukon-Kuskokwim Correctional Center Bethel and other places
so that there would be 176 more beds at Palmer, 225 beds at
Highland for women and about 300 beds elsewhere in the
system. He said they were asking the Legislature to
consider making essentially a down payment on an agreement
to be reached soon. This would give the Department of Law
some ground to stand on when they appear before the Court
and to ask both plaintiffs and the Court to recognize this
down payment in lieu of fines. Senator Phillips said that
this did not answer his question but he would take care of
this problem. Mr. Cole said that they did recognize the
present concerns on part of the Highland Mountain citizens
advisory board about certain aspects of that original plan
that was submitted last year. Senator Phillips said he was
concerned about turning Highland Mountain into a womens'
facility and would continue working with the Commissioner in
trying to find another site. Co-chair Pearce asked Senator
Phillips why he did not want a womens' facility when there
was already a prison. Senator Phillips said the citizens
advisory board, which reflected the community's values, felt
the prisons and programs they had there were running very
well and now the Department was coming in with a proposal to
replace that facility and it's current programs with a
women's facility. He also noted there were 3,000 prisoners
around the State and Eagle River has 300. They have done
their part and now feel other areas of the State should
contribute.
Senator Jerry Ward asked for clarification regarding the
money that is being requested to be set aside in order to
have it apply for the anticipated agreement for Cleary so
the Department of Law has easy access to it. Mr. Cole said
the idea was not that the Department of Law have disposition
of the money but rather that the Department of Law would be
able to back to the plaintiffs and the Court and say the
State intends to come to grips with the overcrowding
problems in the Department of Corrections regardless of the
fact that the solution has not been agreed to. First, the
Court would be asked not to impose the fine on the current
year operating budget, which they have threatened to do; and
second, to recognize on the part of both the Court and the
plaintiffs that the State of Alaska is taking a step towards
solving these problems.
Ms. McConnell said that neither the Department of Law nor
the Department of Corrections would have the authority to
determine the use of that money. It would simply be set
into a capital holding account for the normal legislative
process of determining what facilities might be constructed
or modified. There would be no discretion on the part of
the Department of Law or Department of Corrections or anyone
else in the executive branch to simply expend that for a
plan that has not been determined to be part of the budget
process. Senator Ward asked the reason for putting it
there. Ms. McConnell said make clear to the Court the
State is going to be addressing the underlying problem which
is overcrowding in the prisons that has been part of the
Court's concern. Senator Ward referred to a resolution to a
revisit of the Cleary decision by the Attorney General in
which the Attorney General decided not to honor the
resolution and did not revisit Cleary. Now monies for the
Cleary agreement should be set aside because it had not been
revisited as the Legislature had requested. Ms. McConnell
said this strictly dealt with the fines that have been
imposed by the Court. The Department has an obligation to
bring this forward to the Legislature because there is a
Court order to pay these fines. That is the appropriation
before the committee now. Senator Ward asked if the fines
were because of the Cleary settlement and Mr. Cole said that
he was not able to speak to the technicalities of the Cleary
settlement.
Co-chair Pearce continued on to section 4(a) regarding the
boilers in Fairbanks Correctional Center and also
McGlaughlin. Mr. Cole said the basic issue was that the
boilers at the Fairbanks facility were installed in 1983.
They have a particular configuration that causes certain
kinds of leaks and over a long period of time those leaks
have ruptured the bodies of the boilers. They have been
repaired many times. Last year's boiler inspector's report
along with the one from this year basically say these cannot
be repaired further. Their recommendation was to have these
replaced. The supplemental request was to avoid an
emergency situation. There is about a 9 - 12 month lead
time for doing all of the bid work, contracting that needs
to be done to get these replaced. They should be replaced
this summer before getting into another winter season.
Senator Sharp said his concern was that the boilers were put
installed in 1983 and the life of a commercial boiler should
be longer than fourteen years unless they were of subquality
when they were put in. Co-chair Pearce noted that this
particular model of boilers has experienced numerous
problems. She requested the boiler inspector report and the
manufacturer's agreement. Mr. Cole said that he would
provide the information.
Janet Clark was invited to join the committee. She said the
McGlaughlin Youth Center opened in 1968 and was the State's
largest youth facility, having a capacity of 150 beds. It
runs at an average of 180 beds since this past fall. She
explained the serious overcrowding conditions and the
security problems they have been having, stating that the
facility had been originally built as a residential house.
There is no perimeter security. This past fall there had
been break-ins from the outside by those trying to get some
of the youth out. A security consultant was hired to come
in and evaluate the situation, however, the report being
confidential is not part of their back-up. The Fairbanks
Youth Center was built in 1981 and has a capacity of 40
beds, running at one hundred percent capacity.
Senator Sharp asked for a breakdown between the two
facilities and Ms. Clarke said it was approximately $350,000
for Fairbanks and $850,000 McGlaughlin.
George Buhite, Director, McGlaughlin Youth Center testified
via teleconference. He said last year there were four
separate incidents at the center the most serious being a
drive by shooting. Subsequently two small explosive devices
were placed in the facility, one shattering a window. There
was also a situation of gang graffiti or tagging in one of
the cottages. They were concerned about the escalation of
the boldness of gang members coming onto the campus. They
feel the open perimeters of the facility are now a liability
to the community.
Senator Jerry Ward asked how many escapes there had been
from the facility since 1969. He said there had been no
escapes from the secured section of the facility. There
were two escapes last year from escorts going to Court. The
number of escapees from the unsecured portion of the
facility has dropped to single digits. Senator Ward
commended Mr. Buhite. Senator Ward further asked what the
bed capacity was and Mr. Buhite said it was 150 beds however
noted they were now housing 192 children.
Greg Thompson, Director, Fairbanks Youth Center testified
via teleconference. He also underscored a security incident
at the facility whereby youth had attempted to break into
the facility using a propane torch. Due to the
configuration of the driveway there is ready access to the
facility by the public and he further noted there was
regular and on-going unauthorized contact both vehicular and
pedestrian with the detainees. He said there was a strong
need to keep the public out.
Senator Ward commented on the new security perimeter and
asked if that had to be a new dollar amount and could it be
handled by restricting the road access. Ms. Clarke said
that part of the recommendation was to restrict access to
the facility.
Ms. Clarke explained section 4(c) regarding emergency
communications equipment. This request would provide
different communication equipment to meet some of the gaps
currently on the highway system for emergency medical
services as well as the deteriorating radio situations that
are on the rural highways. She specifically referred to a
crash on the Seward Highway, wherein the Copper Landing
Volunteer Fire Department ambulance crew responded to the
scene and discovered multiple victims. Due to no radio
coverage they were unable to call for additional EMS
assistance or for medivac helicopter. Central Peninsula
General Hospital physicians said this delay definitely cause
an impact to the patients' getting care. Many lives are at
risk because of lack of radio coverage.
Mark Johnson, Anchorage, testified via teleconference. He
said that most of the equipment in the State was purchased
about 20 years ago and it is breaking down with increasing
frequency. The particular concern is the volunteer
ambulance services and some have been formed where there is
no emergency communications within the structure. We have
tried to find solutions to the problems. He noted there
were possibilities through satellite communications
throughout the State. They have been working with the
telecommunications engineers from the Department of
Administration and feel they can address the most urgent
problems previously identified at least before this summer.
The equipment to be purchased will be tailored to the
specific situation in each area. Due to the lack of
communications many lives are jeopardized. Co-chair Pearce
asked if this project were to be funded would it be a
competitively bid RFP for the equipment. Mr. Johnson
indicated that it would. Co-chair Pearce noted for the
record that her husband works for Chugach Regional
Corporation which has a partly owned subsidiary which does
deal in telecommunications equipment and might be a bidder
on that, however, since it is competitively bid she did not
believe there would be a conflict.
Ms. McConnell further commented that there would be other
items relating to emergency communications that would come
forward as part of the FY '98 capital budget. She said
there were a few items that should be sped up such as this
one and the Fairbanks boiler situation. The tourist season
is also fast approaching and there are liability concerns.
This emergency communications request was felt to be the
most urgent.
Senator Phillips said he would like Mr. Johnson to give him
a call later in the day to explain "dead spots" or aging
equipment. He had some suggestions to provide.
Co-chair Pearce said she would hold this matter over until
Monday, 17 February at 8:30 a.m.
ADJOURNMENT
The meeting was adjourned at 10:55 a.m.
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