Legislature(2011 - 2012)BUTROVICH 205

02/24/2011 09:00 AM Senate STATE AFFAIRS


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09:00:06 AM Start
09:03:08 AM Department of Public Safety
09:28:52 AM Department of Administration
10:01:34 AM Department of Corrections
10:30:01 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Department Efficiency and Effectiveness Review:
Department of Administration
Department of Public Safety
Department of Corrections
Bills Previously Heard/Scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE STATE AFFAIRS STANDING COMMITTEE                                                                           
                       February 24, 2011                                                                                        
                           9:00 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Bill Wielechowski, Chair                                                                                                
Senator Joe Paskvan, Vice Chair                                                                                                 
Senator Kevin Meyer                                                                                                             
Senator Cathy Giessel                                                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Albert Kookesh                                                                                                          
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                              
OVERVIEW: DEPARTMENT OF PUBLIC SAFETY                                                                                           
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
OVERVIEW: DEPARTMENT OF ADMINISTRATION                                                                                          
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
OVERVIEW: DEPARTMENT OF CORRECTIONS                                                                                             
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JOE MASTERS, Commissioner                                                                                                       
Department of Public Safety                                                                                                     
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Presented Department of Public Safety                                                                     
overview.                                                                                                                       
                                                                                                                                
BECKY HULTBERG, Commissioner                                                                                                    
Department of Administration                                                                                                    
Juneau, AK                                                                                                                      
POSITION STATEMENT: Presented Department of Administration                                                                    
overview.                                                                                                                       
                                                                                                                                
JOE SCHMIDT, Commissioner                                                                                                       
Department of Corrections                                                                                                       
Anchorage, AK                                                                                                                   
POSITION   STATEMENT:   Presented   Department   of   Corrections                                                             
overview.                                                                                                                       
                                                                                                                                
CARMEN GUTIERREZ, Deputy Commissioner                                                                                           
Division of Rehabilitation & Reentry                                                                                            
Department of Corrections                                                                                                       
Anchorage, AK                                                                                                                   
POSITION   STATEMENT:   Presented   overview  for   Division   of                                                             
Rehabilitation and Reentry.                                                                                                     
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
9:00:06 AM                                                                                                                    
CHAIR BILL WIELECHOWSKI called the  Senate State Affairs Standing                                                             
Committee meeting  to order at 9:00  a.m. Present at the  call to                                                               
order were Senators Giessel, Paskvan, and Chair Wielechowski.                                                                   
                                                                                                                                
^Department of Public Safety                                                                                                    
           PRESENTATION: DEPARTMENT of PUBLIC SAFETY                                                                        
                                                                                                                              
9:03:08 AM                                                                                                                    
CHAIR WIELECHOWSKI  announced the  first order of  business would                                                               
be a presentation by the Department of Public Safety.                                                                           
                                                                                                                              
JOE  MASTERS, Commissioner,  Department  of  Public Safety,  said                                                               
they  have  both a  constitutional  and  a statutory  mandate  to                                                               
provide  public safety.  One of  the biggest  drivers of  service                                                               
need is  the population.  As the  population increases,  the need                                                               
for public services  increases, as does the amount  of crime. Mt-                                                               
Su  is the  largest  and  fastest growing  service  area, and  is                                                               
policed  mainly by  state  troopers.  This is  the  main area  of                                                               
growth in the department. The question  is how to best meet those                                                               
increased needs.                                                                                                                
                                                                                                                                
9:06:30 AM                                                                                                                    
Efficiencies  in services  allow  them to  apply resources  where                                                               
needed,  to  do  more  with  existing  resources.  A  fundamental                                                               
question is  how to  maximize and  better leverage  technology in                                                               
order  to improve  services. One  way is  through the  ability to                                                               
interface  with   other  agencies;  to  facilitate   transfer  of                                                               
information between departments.                                                                                                
                                                                                                                                
9:07:46 AM                                                                                                                    
SENATOR MEYER joined the meeting.                                                                                               
                                                                                                                                
The backbone  for public safety  information in the state  is the                                                               
APSIN system. The  current mainframe is archaic, and  needs to be                                                               
moved  to  a server-based  system  in  order to  experience  cost                                                               
savings.  The Alaska  Records Management  System  (ARMS) is  just                                                               
starting. This  will allow  a change  in the  way they  do police                                                               
reports,  so they  will  reside on  a system  where  they can  be                                                               
accessed   by  other   agencies.  This   must  be   done  through                                                               
technology.                                                                                                                     
                                                                                                                                
9:09:54 AM                                                                                                                    
Another increased efficiency  would be the expanded  use of video                                                               
teleconferencing,  especially  for  court  hearings.  This  would                                                               
require  the  cooperation  of   all  three  branches;  executive,                                                               
legislative, and  judicial. Currently  there are  some allowances                                                               
for video court hearings, but  this needs to be greatly expanded.                                                               
For instance,  when grand  jury hearings  are held  in Anchorage,                                                               
this requires officers to fly in  from rural areas, which takes a                                                               
day of travel. Then they wait  in the courtroom for their turn to                                                               
testify.  Then  it  takes  another  day  to  get  back  to  their                                                               
stations. The  result is three  days of lost productivity,  in an                                                               
area  that cannot  afford to  lose a  trooper for  even one  day.                                                               
Expanded use  of video  in grand  jury hearings  would be  a huge                                                               
increase  in  efficiency.   It  could  be  used   when  no  cross                                                               
examination is needed.                                                                                                          
                                                                                                                                
CHAIR  WIELECHOWSKI  asked  if that  would  require  a  statutory                                                               
change.                                                                                                                         
                                                                                                                                
9:12:14 AM                                                                                                                    
COMMISSIONER   MASTERS  answered   he  thought   it  would   take                                                               
legislation and a court rule change.                                                                                            
                                                                                                                                
Another  area  for  increased efficiency  is  collaboration  with                                                               
other agencies.  An example is  the recent partnership  of Public                                                               
Safety  with Corrections  in the  Village  Public Safety  Officer                                                               
(VPSO)  program. This  provides  efficiencies  to both  agencies.                                                               
VPSOs  assist with  supervised probation  in  rural areas,  which                                                               
save time  and cost of  travel for the Department  of Corrections                                                               
(DOC)  and allow  DOC to  put probationers  in rural  areas where                                                               
they could not in the past.                                                                                                     
                                                                                                                                
Just beginning is a collaboration  with statewide coordination of                                                               
911 and emergency communications.                                                                                               
                                                                                                                                
9:15:34 AM                                                                                                                    
They  have  examined  work  flow processes  in  some  areas.  For                                                               
instance,  there   was  an  issue  with   fingerprint  background                                                               
investigation time.  Prints were  submitted by job  seekers (i.e.                                                               
school  bus drivers)  and  the average  turnaround  time was  105                                                               
days. This was unacceptable, and  provided no protection, because                                                               
people  were  hired  before  the   check  was  complete.  So  the                                                               
department  looked at  workflow  and made  changes and  automated                                                               
some pieces, and  they reduced the time to three  days. This is a                                                               
small example  but this type  of thing can  be done on  a broader                                                               
scale.  The  state needs  to  use  consultants, develop  internal                                                               
expertise,  and  perhaps  standardize  some  processes  in  state                                                               
government.                                                                                                                     
                                                                                                                                
9:18:50 AM                                                                                                                    
SENATOR PASKVAN asked  about the issue of turnover,  and what are                                                               
the challenges to recruiting and retaining.                                                                                     
                                                                                                                                
COMMISSIONER  SCHMIDT  said  finding and  retaining  longer  term                                                               
employees  is   fundamental.  They  have  low   turnover  at  the                                                               
commission level. He  feels it is a good  organization, with good                                                               
training, and the  salary and benefits are  sufficient to attract                                                               
people. This  is not true in  all job classes of  the department.                                                               
Some  may  be lagging  in  adequate  pay, for  instance  computer                                                               
programming and scientific analysis.                                                                                            
                                                                                                                                
CHAIR WIELECHOWSKI  asked about other specific  work flow changes                                                               
that could be looked at.                                                                                                        
                                                                                                                                
COMMISSIONER said he would get back on that.                                                                                    
                                                                                                                                
CHAIR  WIELECHOWSKI asked  about  jurisdictional  issues; in  the                                                               
MatSu, for instance.                                                                                                            
                                                                                                                                
COMMISSIONER  SCHMIDT  responded  there  is  no  requirement  for                                                               
municipalities  or boroughs  to provide  public safety  services.                                                               
They are only provided if  taxes are sufficient to fund services.                                                               
Cities  provide some,  but not  usually unincorporated  boroughs.                                                               
Most of the population lives outside of city boundaries.                                                                        
                                                                                                                                
CHAIR WIELECHOWSKI asked if troopers go into Wasilla and Palmer.                                                                
                                                                                                                                
COMMISSIOER SCHMIDT  answered they have informal  agreements with                                                               
those   areas,   and  statute   also   allows   them  to   assist                                                               
municipalities.  Troopers help  out with  things like  homicides,                                                               
drugs,  and  highway  safety. Often  troopers  traveling  between                                                               
areas will witness things, so they take care of them.                                                                           
                                                                                                                                
SENATOR MEYER asked about Girdwood.                                                                                             
                                                                                                                                
COMMISSIONER   SCHMIDT   responded   Girdwood   is   within   the                                                               
municipality  of Anchorage.  Citizens pay  taxes in  some service                                                               
districts, but not in Girdwood, so troopers are there.                                                                          
                                                                                                                                
9:26:16 AM                                                                                                                    
CHAIR WIELECHOWSKI  asked if  there are  any redundancies  in the                                                               
department.                                                                                                                     
                                                                                                                                
COMMISSIONER  SCHMIDT answered  that is  a loaded  question. They                                                               
are working on looking at  organizational structure, and there is                                                               
some  talk of  reorganization  to better  deliver services.  They                                                               
have reduced the  number of bureaus. Several  positions have been                                                               
refocused.  Internal  accountabilities,  internal  audit  review,                                                               
inspections, planning and research are being conducted.                                                                         
                                                                                                                                
^Department of Administration                                                                                                   
           PRESENTATION: DEPARTMENT of ADMINISTRATION                                                                       
                                                                                                                                
9:28:52 AM                                                                                                                    
CHAIR WIELECHOWSKI announced the next  order of business would be                                                               
a presentation by the Department of Administration.                                                                             
                                                                                                                              
BECKY  HULTBERG,   Commissioner,  Department   of  Administration                                                               
(DOA), said  the need  to decrease  growth in  the cost  of state                                                               
government  is very  much  on her  mind. Today  the  state has  a                                                               
healthy savings  account and sufficient  revenue, but  this could                                                               
change in  the future.  DOA has  a stewardship  responsibility to                                                               
ensure  the public  gets maximum  value for  dollars spent.  They                                                               
provide  support services  to state  government,  so things  like                                                               
relationships  with   employees,  as   well  as   retirement  and                                                               
benefits,  are  within  their department.  Governor  Parnell  has                                                               
asked cabinet  members to be  innovators and  collaborators. This                                                               
sounds simple but is extremely important.                                                                                       
                                                                                                                                
9:31:49 AM                                                                                                                    
She   has   identified   two   themes   around   efficiency   and                                                               
effectiveness. The first is technology  as an enabler of improved                                                               
business  processes.  Technology is  a  driver  of efficiency  if                                                               
implemented  effectively. The  ASSET  project  is a  standardized                                                               
timekeeping system.  Currently a lot  of manual work  is followed                                                               
by data entry. Using this  system will improve efficiency in that                                                               
area.                                                                                                                           
                                                                                                                                
CHAIR WIELECHOWSKI asked how it would work.                                                                                     
                                                                                                                                
COMMISSIONER HULTBERG  responded that  the use of  manual systems                                                               
or Excel  spreadsheets requires duplication of  entry. By setting                                                               
up  an  automated  system,  duplication  will  be  avoided.  Some                                                               
divisions  and  departments  may  use   a  time  clock,  such  as                                                               
corrections, but most employees will use the interface.                                                                         
                                                                                                                                
A  second  project  is   the  administrative  system  replacement                                                               
project (ASRP),  which will replace  core accounting  and payroll                                                               
systems.  These systems  are  reaching the  end  of their  useful                                                               
life,  and  have   to  be  replaced.  This   requires  a  capital                                                               
investment.  The   state  currently  has  over   200  procurement                                                               
officers, and  the system doesn't  know what they  have purchased                                                               
until a check  is issued. The new system  will provide accounting                                                               
for what people are purchasing.                                                                                                 
                                                                                                                                
CHAIR WIELECHOWSKI asked if this is similar to Texas.                                                                           
                                                                                                                                
COMMISSIONER  HULTBERG answered  other  state  have gone  through                                                               
this and the department is looking at models from other states.                                                                 
                                                                                                                                
9:36:07 AM                                                                                                                    
The  new system  ultimately  will allow  more  automated ways  of                                                               
entering  HR  information;  it  will  allow  more  employee  self                                                               
service.                                                                                                                        
                                                                                                                                
Technology--understanding the  work flow process is  critical. If                                                               
you don't understand this, you  can create inefficiency. Does the                                                               
state  have the  competency within  state government  to use  the                                                               
tools  that   are  out  there   to  analyze  workflow   within  a                                                               
department; it  is possible  the state may  need to  hire outside                                                               
consultants.                                                                                                                    
                                                                                                                                
CHAIR  WIELECHOWSKI asked  what  types  of information  employees                                                               
would be able to enter.                                                                                                         
                                                                                                                                
COMMISSIONER HULTBERG  responded they could  go on line to  add a                                                               
dependent, change  their withholding,  etc. This would  be better                                                               
for  employees and  would remove  the work  of someone  having to                                                               
input information for them.                                                                                                     
                                                                                                                                
CHAIR WIELECHOWSKI  noted some states have  implemented a program                                                               
called CityStat.                                                                                                                
                                                                                                                                
9:39:02 AM                                                                                                                    
COMMISSIONER  HULTBERG  said   cross  departmental  collaboration                                                               
gives better value for dollars spent.  Right now the state is not                                                               
effectively leveraging its IT dollars  for maximum benefit to the                                                               
state.  There is  a natural  tension  between centralization  and                                                               
decentralization.  Right now  the system  is  not efficient.  The                                                               
state needs to find efficiency and provide service.                                                                             
                                                                                                                                
9:40:32 AM                                                                                                                    
COMMISSIONER  HULTBERG said  they are  also looking  at providing                                                               
state services  in a  one stop  shop mode.  Services such  as the                                                               
DMV,  hunting and  fishing licenses,  and PFD  applications could                                                               
all be in one location?                                                                                                         
                                                                                                                                
CHAIR WIELECHOWSKI noted  some shops are opening up  that are not                                                               
run by the state, such as DMV, and they are charging more.                                                                      
                                                                                                                                
COMMISSIONER said those arrangements do exist.                                                                                  
                                                                                                                                
SENATOR MEYER said he has  used satellite offices frequently, and                                                               
it is faster so you pay for convenience.                                                                                        
                                                                                                                                
COMMISSIONER HULTBERG said  DMV is one that  touches most people.                                                               
The more  we can  work to improve  customer service,  the better.                                                               
Currently  there  are different  levels  of  customer service  in                                                               
public  facing departments.  The state  needs to  have a  uniform                                                               
customer service policy.                                                                                                        
                                                                                                                                
9:43:24 AM                                                                                                                    
SENATOR PASKVAN  asked what  type of  notice the  public receives                                                               
that  there might  be an  additional charge.  Are we  outsourcing                                                               
contractually?                                                                                                                  
                                                                                                                                
COMMISSIONER HULTBERG  said she would find  out that information.                                                               
She said the DOA is implementing  a return to work program within                                                               
the division of  risk management, trying to  help injured workers                                                               
to reintegrate into the workforce.  The longer someone is at home                                                               
out of work, the  less likely they are to come  back. In terms of                                                               
office space costs, the DOA  could explore more flexible schedule                                                               
arrangements or  shift work to  accommodate employees  and reduce                                                               
office space cost.                                                                                                              
                                                                                                                                
9:45:40 AM                                                                                                                    
CHAIR WIELECHOWSKI said that sometimes  changes are made in order                                                               
to create  efficiencies, so there  is an increment but  you never                                                               
see the deficit. This is not  intentional, but the effect is that                                                               
government grows. For instance,  efficiencies in the court system                                                               
could  also  create efficiencies  in  DOC.  The state  should  be                                                               
looking at the big picture, instead of piece by piece.                                                                          
                                                                                                                                
COMMISSIONER HULTBERG  responded we  have recognized that  in the                                                               
procurement area.  A change only saves  money if it is  not being                                                               
spent  somewhere else.  DOA can  play an  important role,  but it                                                               
ultimately comes down to management  and oversight, department by                                                               
department, with collaboration.                                                                                                 
                                                                                                                                
SENATOR MEYER  said procurement is  an area  where we can  gain a                                                               
lot of efficiencies,  but it may take an  upfront investment. The                                                               
legislature and the governor need  to learn to invest upfront, in                                                               
order  to acquire  the technology  that results  in efficiencies.                                                               
The  legislature also  needs  to look  at  the whole  procurement                                                               
code.  There are  so many  exceptions, why  have a  code at  all.                                                               
There is  potential for millions to  be saved. The intent  is not                                                               
to lose  jobs; change  can be  tough to  do, but  it needs  to be                                                               
done.                                                                                                                           
                                                                                                                                
9:50:53 AM                                                                                                                    
COMISSIONER HULTBERG  said the Administrative  System Replacement                                                               
Project  (ASRP) will  be able  to do  some of  those things.  The                                                               
system needs  to be changed  to a procure  to pay process  so the                                                               
state can  identify what are  we buying in large  quantities. She                                                               
would  also  be  happy  to  work  with  the  legislature  on  the                                                               
procurement  code,  which  needs  to   be  updated.  It  is  also                                                               
important  to find  efficiencies in  the personnel  area. We  can                                                               
take  care  of  people  and still  find  efficiencies.  The  word                                                               
productivity  doesn't  need to  mean  fear.  It is  important  to                                                               
recognize  that we  have good  people, and  to take  care of  the                                                               
people who work for us.                                                                                                         
                                                                                                                                
CHAIR WIELECHOWSKI asked how many retire each year.                                                                             
                                                                                                                                
COMMISSIONER answered she could provide statistics.                                                                             
                                                                                                                                
CHAIR  WIELECHOWSKI noted  that  efficiencies can  be  done in  a                                                               
painless way.                                                                                                                   
                                                                                                                                
SENATOR  PASKVAN  asked if  there  is  a particular  category  of                                                               
employee that has constant turnover.                                                                                            
                                                                                                                                
COMMISSIONER HULTBERG answered  there may be one  or two targeted                                                               
areas, but  none are  at a crisis  level yet.  Administrative law                                                               
judges  may be  of some  concern.  The Division  of Personnel  is                                                               
aware of those areas that  are having difficulty with recruitment                                                               
and retention.  This also involves a  statutory responsibility to                                                               
create  a  pay  plan.  DOA  Will  explore  further  if  there  is                                                               
interest.                                                                                                                       
                                                                                                                                
CHAIR WIELECHOWSKI said  the question comes up every  year; if we                                                               
are losing  people and it costs  a lot to train  replacements, we                                                               
need to focus on retention.                                                                                                     
                                                                                                                                
COMMISSIONER noted that  when people leave a job,  less than half                                                               
the time  it is because  of pay and benefits.  Workplace culture,                                                               
leadership training, and relationships  with supervisors are most                                                               
often cited.                                                                                                                    
                                                                                                                                
SENATOR PASKVAN  said he would like  to know more about  how many                                                               
are  retiring versus  leaving  because of  low  pay versus  being                                                               
stressed  by  managers,  etc.  He  noted we  need  that  type  of                                                               
information; some  departments do  have exit interviews,  but the                                                               
process could be improved.                                                                                                      
                                                                                                                                
9:56:49 AM                                                                                                                    
SENATOR GIESSEL  asked how many  employees are retiring  and then                                                               
being hired back on a contract basis.                                                                                           
                                                                                                                                
COMMISSIONER  HULTBERG responded  the DOA  is working  on getting                                                               
that information.                                                                                                               
                                                                                                                                
CHAIR WIELECHOWSKI noted that DOA  manages some public buildings,                                                               
and  asked  if retrofit  and  weatherization  of those  buildings                                                               
could provide cost savings.                                                                                                     
                                                                                                                                
COMMMISSIONER HULTBERG said she would find that information.                                                                    
                                                                                                                                
SENATOR PASKVAN  said he would like  to know what the  trends are                                                               
toward   contract  hire,   especially  of   employees  who   were                                                               
previously direct employees.                                                                                                    
                                                                                                                                
COMMISSIONER  HULTBERG  answered  if  someone  comes  back  on  a                                                               
contract DOA  can't get the  information through the  Division of                                                               
Personnel. It has to be collected from each department.                                                                         
                                                                                                                                
SENATOR  PASKVAN  asked  who   makes  the  determination  whether                                                               
someone is hired as an employee versus on contract.                                                                             
                                                                                                                                
COMMISSIONER  HULTBERG answered  she would  get the  information.                                                               
The Division of  Personnel has some role, but  many decisions are                                                               
made  by individual  departments. This  would be  handled through                                                               
procurement staff.                                                                                                              
                                                                                                                                
^Department of Corrections                                                                                                      
            PRESENTATION: DEPARTMENT of CORRECTIONS                                                                         
                                                                                                                                
10:01:34 AM                                                                                                                   
CHAIR WIELECHOWSKI announced the  next presentation would be from                                                               
the Department of Corrections.                                                                                                  
                                                                                                                                
JOE SCHMIDT, Commissioner, Department  of Corrections (DOC), said                                                               
that  they  have  identified  possible  efficiencies.  The  state                                                               
constitution    calls   for    five   principles    of   criminal                                                               
administration: public protection,  community condemnation of the                                                               
offender, rights  of the victim, restitution,  and the principles                                                               
of  reformation. Their  mission statement  gives three  different                                                               
approaches:   secure  confinement,   reformative  programs,   and                                                               
supervised reentry.                                                                                                             
                                                                                                                                
This gives  them the ability to  focus on areas needed.  There is                                                               
secure  confinement for  dangerous  people. Reformative  programs                                                               
are needed  because 95  percent get  out of jail.  This is  not a                                                               
prisoner  rights  approach;  it  is about  the  communities  that                                                               
people go  back to. Where the  prison population comes from  is a                                                               
result of  the law making  process. Reducing recidivism  is where                                                               
efficiencies will come from. We need  to prevent the crime in the                                                               
first place, and\or focus on people not coming back.                                                                            
                                                                                                                                
10:04:36 AM                                                                                                                   
About 200 a  month come back from the  probation department. Half                                                               
come back  with new  crimes, and  half of  those with  new crimes                                                               
committed while waiting for a  judicial process. During that time                                                               
is when  they commit new  crimes. The  DOC is implementing  a new                                                               
program   called   PACE,   Probationer   Accountability   Certain                                                               
Enforcement.  The highest  risk  offenders are  assigned to  this                                                               
program.  If  they   do  anything  wrong,  such   as  missing  an                                                               
appointment with  their probation  officer, the police  pick them                                                               
up  that day.  The Anchorage  police department  and courts  have                                                               
agreed to  see them within  24 or  48 hours. Hopefully  when they                                                               
are released  after a day  or two,  they don't lose  any progress                                                               
they have  made. The PACE  group is now  up to 70,  and continued                                                               
expansion is the  way of the future. DOC is  focusing on domestic                                                               
violence misdemeanants, and  they are asking for  resources to do                                                               
this.                                                                                                                           
                                                                                                                                
CHAIR WIELECHOWSKI asked how much was needed.                                                                                   
                                                                                                                                
COMMISSIONER  answered  $200,000.  He noted  the  DOC's  guidance                                                               
comes from questions.                                                                                                           
                                                                                                                                
CHAIR WIELECHOWSKI said recidivism is a huge issue                                                                              
                                                                                                                                
COMMISSIONER  SCHMIDT  said most  results  from  new crimes,  but                                                               
parole  violations  could also  be  new  crimes. After  treatment                                                               
programs, the recidivism rate drops to 40 percent.                                                                              
                                                                                                                                
10:10:04 AM                                                                                                                   
In terms  of the focus on  recidivism, the VPSO partnership  is a                                                               
very  strong program;  part of  the reason  they downsized  Goose                                                               
Creek  was  to  spread  out   the  resource.  People  from  rural                                                               
communities had to  get treatment in Anchorage  or Fairbanks, and                                                               
they have no support in the  community, so getting them back home                                                               
works best.  Communities want  them sent  home. The  sex offender                                                               
program  and halfway  house in  Bethel has  been successful.  DOC                                                               
needs  more of  those  programs.  He would  also  like to  expand                                                               
electronic monitoring,  which is  95 percent  successful, meaning                                                               
95 percent of participants finish  on time without a violation or                                                               
a new crime. Five percent  are probation violations. DOC wants to                                                               
use  this program  more, and  they are  asking for  funding. This                                                               
costs $13 a day  as opposed to $139 a day to  keep an offender in                                                               
prison.                                                                                                                         
                                                                                                                                
                                                                                                                                
CHAIR WIELECHOWSKI  asked who administers the  ignition interlock                                                               
program.                                                                                                                        
                                                                                                                                
COMMISSIONER SCHMIDT responded he would find the information.                                                                   
                                                                                                                                
He noted  that DOC medical  costs are going up.  Cost containment                                                               
is  a  challenge, because  the  law  says  they are  required  to                                                               
provide essential care.                                                                                                         
                                                                                                                                
10:14:23 AM                                                                                                                   
CARMEN    GUTIERREZ,   Deputy    Commissioner,   Department    of                                                               
Corrections, thanked  the committee for its  worthy approach. She                                                               
said  inmate medical  care  is a  big issue  which  grows as  the                                                               
number of people incarcerated increases.  Under state statute and                                                               
regulation  and policy  and  procedure, the  DOC  is required  to                                                               
provide  inmates  with  necessary  medical,  dental,  and  mental                                                               
health services.  DOC has  a history of  utilizing the  most cost                                                               
effective method for  treatment, but the primary  decision is not                                                               
cost, but rather the need. Is  it medically necessary? DOC has to                                                               
provide  these  services  to unsentenced  as  well  as  sentenced                                                               
offenders.                                                                                                                      
                                                                                                                                
The driving  factor for fy12  increases is the increased  cost of                                                               
contractual  medical fees  for services.  DOC does  not have  the                                                               
capacity  to treat  all ailments  inside the  institutions. These                                                               
costs have  increased beyond the  increase in  inmate population.                                                               
They  have   implemented  cost  containment  measures,   such  as                                                               
increasing  the fee  individuals are  required to  pay when  they                                                               
request treatment. This has been  increased to $5. They have also                                                               
addressed cost  efficiencies in terms  of long care  acute inmate                                                               
care; St. Elias Specialty Hospital  now has a contract to provide                                                               
long  term  care  for  inmates  who would  otherwise  be  in  the                                                               
hospital. This results in savings of up to $7,000 a day.                                                                        
                                                                                                                                
CHAIR WIELECHOWSKI asked if a wealthy  person is in jail who pays                                                               
for their medical care.                                                                                                         
                                                                                                                                
MS. GUTIERREZ said currently the  DOC does not have an electronic                                                               
medical  records system.  As  a result  they  lack the  necessary                                                               
infrastructure  to   collect  private  insurance   from  inmates.                                                               
Regulation  says  they  can  collect  but  they  don't  have  the                                                               
infrastructure to do it. DOC  has contacted a third party medical                                                               
care  collection agency,  but they  won't do  the job  without an                                                               
electronic  medical   records  system.  It  would   not  be  cost                                                               
effective  for them  to handle  paper  files. DOC  has a  million                                                               
dollar  capital request  in  the fy12  budget  for an  electronic                                                               
medical  records system.  This would  provide great  efficiencies                                                               
they  currently can't  employ. They  could  then collect  private                                                               
insurance.                                                                                                                      
                                                                                                                                
10:21:50 AM                                                                                                                   
Other cost  containment measures include  renegotiating contracts                                                               
with  hospitals  to  align  costs  and  standards  of  care  with                                                               
Medicaid.  They are  in the  process  of aligning  pharmaceutical                                                               
costs also. They are  doing a case by case review  of all pay for                                                               
services cases in outside medical care facilities.                                                                              
                                                                                                                                
CHAIR WIELECHOWSKI asked how much are we paying.                                                                                
                                                                                                                                
MS.  GUTIERREZ answered  this  year  it is  estimated  to be  $38                                                               
million.                                                                                                                        
                                                                                                                                
CHAIR  WIELECHOWSKI responded,  "So a  million dollar  investment                                                               
would be good."  He asked if DOC could seek  assets from a person                                                               
who has them.                                                                                                                   
                                                                                                                                
MS. GUTIERREZ  said she did  not know  the answer but  would find                                                               
out.                                                                                                                            
                                                                                                                                
SENATOR  PASKVAN asked  if a  person is  on Medicaid  or Medicare                                                               
does DOC use  that rate of pay to establish  what the provider is                                                               
paid.                                                                                                                           
                                                                                                                                
MS.  GUTIERREZ responded  there are  two important  issues. If  a                                                               
person is  on Medicaid or  Medicare, DOC can't collect.  They are                                                               
trying   to   negotiate   fee-for-service  contracts   that   are                                                               
consistent with the Medicaid rate.  In some cases they are paying                                                               
more.                                                                                                                           
                                                                                                                                
SENATOR  PASKVAN asked  will health  care providers  accept those                                                               
rates of pay.                                                                                                                   
                                                                                                                                
10:26:24 AM                                                                                                                   
MS.  GUTIERREZ   answered  they   may  have  some   success  with                                                               
hospitals.  With  regard  to  doctors, they  may  not  have  same                                                               
success.  Because  they are  in  great  demand, many  won't  take                                                               
Medicaid. There is a severe  shortage of internists in the state,                                                               
so DOC pays what it has to pay.                                                                                                 
                                                                                                                                
MS. GUTIERREZ said the goal for  long term efficiencies is to use                                                               
proven  evidence  based  practices  to  implement  programs  that                                                               
address the issues that brought  the offender into custody in the                                                               
first place.  Alaska's prison system  cannot continue to  grow at                                                               
the current rate.                                                                                                               
                                                                                                                                
The goal is to identify the  drivers of prison growth; 48 percent                                                               
are  in  custody  for  offenses  against a  person,  or  for  sex                                                               
offenses. This  means 52  percent are  in custody  for nonviolent                                                               
offenses. The greatest efficiency would  be to reduce the rate of                                                               
prison   growth,   possibly   by  identifying   alternatives   to                                                               
incarceration for  offenders who do  not present a danger  to the                                                               
public.                                                                                                                         
                                                                                                                                
10:30:01 AM                                                                                                                   
There being  no further  business to  come before  the committee,                                                               
Chair Wielechowski  adjourned the  Senate State  Affairs Standing                                                               
Committee  meeting at 10:30 a.m.                                                                                                

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