HB 370 An Act making appropriations for the operating and loan program expenses of state government and to capitalize funds; and providing for an effective date. DEPARTMENT OF CORRECTIONS AND THE DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES BUDGET CLOSEOUTS DEPARTMENT OF CORRECTIONS REPRESENTATIVE RAMONA BARNES, SPEAKER OF THE HOUSE, stated 1 that the Department of Corrections' Subcommittee achieved the target reduction of $5,819.9 million dollars specified by the House Finance Committee including a transfer of $1,966.4 million dollars to the Department of Health and Social Services and new program receipt authority for new revenues which would be added in the amount of $1,584.6 million dollars. Speaker Barnes provided the Committee with an overview of the Subcommittee's work including budget increments and decrements. [Copy on file]. Speaker Barnes stated that all requests for repair, maintenance, or building materials would be denied and would be considered in the capital budget. All requests for training funds would be denied pointing out that training should be addressed by the Correctional Academy. Tuition and registration fees would be deleted in all institution components emphasizing that employees should pay their own registration and fees. Speaker Barnes understood that the DOC Subcommittee budget would reflect an impact to the Department of Corrections status quo in comparison to the current fiscal year budget or the budget recommended by the Governor. Co-Chair MacLean asked the impact of deleting the alcohol and drug abuse component. Representative Hanley commented that the $700 thousand dollars which was originally in the Department of Corrections' budget had been RSA'd to the Department of Health and Social Services' budget. Representative Grussendorf advised that the newly introduced crime bills should be considered in this years' fiscal budget for the Department. Speaker Barnes replied that the current budget process is not responsible to fund new legislation and that it should be funded through fiscal notes. She added that the new crime legislation would not affect the FY95 budget. Speaker Barnes remarked that the 50 new beds at Spring Creek would be maximum security beds. Project Hope was intended to house offenders who had up to two years of their sentence left and who do not require the security level. Representative Barnes stated that the classification system currently being used by the Department could not release enough offenders to Project Hope. She added, that when Project Hope becomes fully utilized, the beds will cost the State $35 dollars per day as opposed to the current daily cost of $113 dollars. Representative Brown MOVED to WITHDRAW Amendment #1. There being NO OBJECTION, it was withdrawn. 2 Representative Navarre MOVED to HOLD Amendment #2. There being NO OBJECTION, it was held. Representative Navarre MOVED to HOLD Amendment #3. There being NO OBJECTION, it was held. Representative Brown MOVED to HOLD Amendment #4. There being NO OBJECTION, it was held. Representative Navarre MOVED to HOLD Amendment #5. There being NO OBJECTION, it was held. Representative Brown MOVED to adopt Amendment #6 which would restore the reductions made by the House Finance Subcommittee and would add funding to the level requested by the Governor's amended budget for the Department of Corrections. J. FRANK PREWITT, COMMISSIONER, DEPARTMENT OF CORRECTIONS, pointed out that two weeks ago, the Department of Corrections facilities hit a record high, holding 350 more prisoners than the FY94 funded maximum capacity. During the last ten years, the inmate population has grown at the rate of 8.2% per year. In the past twelve months the growth rate has increased to 11.6% per year. He elaborated that a hard bed has not been added to the system since 1988. Commissioner Prewitt advised that practices occurring within the state prison system are at an "emergency capacity". He elaborated that "emergency capacity" is the point when a correctional system begins to break down. Commissioner Prewitt listed signs of emergency capacity: 1. Staff burnout. 2. Inmate tension. 3. Building and security equipment deteriorating faster than repairs can be made. 4. Incidents of violence. Commissioner Prewitt commented that the Governor's proposed budget would add 261 high, medium and low custody beds to the system. The Governor's budget would also take an aggressive stand on alcohol treatment needed during incarceration. That budget would keep the system out of crisis for one to two years. He stressed that adopting the budget proposed by the subcommittee would close prisons and probation offices which would be an assault on public safety. Commissioner Prewitt urged the Committee to amend the proposed subcommittee budget or to adopt the Governor's 3 recommended budget. Discussion followed among Committee members, Commissioner Prewitt and Speaker Barnes regarding Project Hope and the number of beds held at that institution and the general overcrowding conditions occurring throughout the Alaska State prison system. Representative Barnes pointed out that the misdemeanant population has been on the rise for many years. She felt that there are a number of ways to bring down that number, specifically by opening the Palmer Center. (Tape Change, HFC 94-95, Side 2). Commissioner Prewitt clarified that the conditions which drive the Department of Corrections budget are supply and demand. He added that beds at Project Hope will be full. The needs submitted by the Department are over and above the 120 inmates who can be placed at Project Hope. He added that the Department does not have the ability to classify offenders at Project Hope. Those offenders have to go there voluntarily, consequently those beds are designated at minimum custody. The furlough policy makes an offender eligible to go to Project Hope when they have served one third of their sentence and are within three years of release. Commissioner Prewitt pointed out that Project Hope is competing for the same type of offenders as the half way houses. Commissioner Prewitt stressed that zoning for a misdemeanant facility is not the problem, whereas, the need of beds in any facility is the issue. He felt that without these beds there will be a crisis. Speaker Barnes proposed to hold open the section of the budget dealing with soft bed funding and the possibility of fund allocations to Wildwood Correctional Institute. Representative Navarre suggested that the incremental cost of the Wildwood beds would be $41 dollars per day which does not address the overcrowding currently existing within the Department. Commissioner Prewitt expressed his commitment to Project Hope, pointing out that there are over forty people at that facility. He added that the project is presently involved in mental health litigation. Speaker Barnes indicated that the problem within the Department of Corrections is with the classification system used. She expounded that the system used in Alaska is the highest cost in the world, and pointed out that the Commissioner has furlough policies and matrix systems which have been rewritten under that classification 4 system. She thought that the system could not address the concerns of the Committee and should be rewritten to simplify it. MELVA KROGSENG, STAFF, REPRESENTATIVE BARNES, read a letter to Dr. Robert Levinson from Robert Spinde, Chief Classification Officer addressing the classification process and the revised furlough policy. [Copy on file]. The letter indicated that the furlough policy was implemented because of Legislative action. Representative Grussendorf asked the funding needed to effectively run the Department of Corrections. Commissioner Prewitt explained that "a prison is a city under marshall law" and added that the budget proposed by the Governor would take the Department out of a crisis posture for one year. He pointed out that currently a contempt motion has been made for the overcrowding condition in Alaska prisons. If the Governor's budget is adopted, the system could be placed to "full". Commissioner Prewitt concluded that there is an 8%-10% growth occurring each year in Alaska. Discussion followed among Committee members and the Commissioner regarding the high prison costs in Alaska as compared to Missouri. Commissioner Prewitt pointed out that the State does not spend a higher percentage of the operating budget than other states on corrections. Alaska spends only five (5%) percent of the budget. REPRESENTATIVE FRAN ULMER acknowledged that the Department of Corrections is currently in a crisis situation and that the court decision pending could demand that prisoners be released because of over crowding. She emphasized that the Legislature has been informed of the ramifications of the pending actions. Commissioner Prewitt responded to the classification system inquiry pointing out that the Department was specifically told not to use Project Hope for misdemeanant offenders. He added that the purpose of the classification system is to lower custody of offenders in order that more people released would be able to go out into the community. The same result has been accomplished with the furlough policy. He commented that the furlough policy has come under criticism now as sex offenders are being treated and released. Project Hope has not been fully utilized because of concerns regarding public safety and offender reformation. Project Hope has no walls and no fences and the Department can send only the offenders who volunteer for that program. Commissioner Prewitt added that he is committed to fully utilizing Project Hope. 5 (Tape Change, HFC 94-96, Side 1). Representative Ulmer pointed out that the Correction's Subcommittee never adequately addressed the Governor's FY95 amended budget. The Commissioner was not given an opportunity to have a hearing on that budget. She emphasized that the services provided by the Department of Corrections are not optional. Representative Ulmer summarized that the cap provided by the Subcommittee is too low and she urged that the Committee reconsider the cap. Representative Brown MOVED to reduce the allocation made in Amendment #6 by $1 million dollars. She emphasized that there are not enough funds in the Department's budget to address the major crime bills already passed out of the House of Representatives. Representative Brown WITHDREW the MOTION to MOVE the amendment. Amendment #6 was HELD for further consideration. Representative Navarre MOVED to amend Amendment #5 changing the total restoration to $158 million dollars which would cover the cost of two assistant superintendent positions. The $883 thousand dollars would be allocated for the additional fifty-nine beds. He added that Amendment #5 would not be offered if there was agreement on Amendment #6. Representative Hanley discussed the mental health services for corrections. He noted that Amendment #7 would restore the $1,966.4 GF/MHTIA to the Department of Corrections' budget whereas Amendment #8 would remove an additional $337.7 GF/MHTIA from the Department of Corrections' budget (associated with the deleted positions) and insert $2,301.1 GF/MHTIA in the Department of Health and Social Services' budget. Correctional mental health services would then be provided by Health and Social Services. Commissioner Prewitt spoke to the problems within the Department having dual supervision. There is a balance in the Department between public safety, protection of the public and reformation of the offenders. All programs would have to be done within security constraints. He asked that the Committee support Amendment #7 which would keep the component within the Department of Corrections. Representative Ulmer supported the component being kept in the Department of Corrections. Mel Krogseng noted that Speaker Barnes supported keeping the entire component in the Department of Health and Social Services and urged support of Amendment #8. She indicated support also for an additional allocation of $334.7 to the Department's budget. 6 Discussion followed among Committee members and the Commissioner regarding the current treatment facilities. Representative Hoffman MOVED to adopt Amendment #7. Representative Hanley OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Hoffman, Martin, Navarre, Brown, Foster, Grussendorf. OPPOSED: Parnell, Therriault, Hanley, Larson, MacLean. The MOTION PASSED (6-5). Amendment #8 was WITHDRAWN. There being NO OBJECTION, it was so ordered. DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES Representative Navarre MOVED to adopt Amendment #1 which would add $2,500.0 to the Department of Transportation and Public Facilities (DOTPF) for statewide maintenance and operations and would reduce the Department of Environmental Conservations' budget by $2,500.0 million dollars for the underground storage tank assistance program. Representative Therriault OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Navarre, Brown, Grussendorf, Hoffman. OPPOSED: Martin, Parnell, Therriault, Foster, Hanley, MacLean, Larson. The MOTION FAILED (4-7). Representative Navarre noted a change to Amendment #2 which would apply $1.0 million dollars to the budget deficit and $1.5 million dollars to the underground storage tank program, a total reduction to the storage tank program of $2.5 million dollars. Representative Navarre MOVED to adopt Amendment #2. Representative Therriault OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Navarre, Parnell, Brown, Foster, Grussendorf, Hanley, Hoffman, MacLean. OPPOSED: Therriault, Martin, Larson. 7 The MOTION PASSED (8-3). Representative Navarre MOVED to WITHDRAW Amendment #3. There being NO OBJECTION, it was withdrawn. Representative Navarre MOVED to adopt Amendment #4 which would allocate $1,500.0 million dollars to DOTPF's statewide maintenance and operations and would reduce that amount from the Alaska Tourism Marketing Council in the Department of Commerce and Economic Development (DCED). (Tape Change, HFC 94-96, Side 2). MIKE GREANY, DIRECTOR, LEGISLATIVE FINANCE DIVISION, explained that carry forward funds had been removed from the House recommendation in the amount of $33.8 million dollars from the Legislative budget. He added that carry forwards would be contained in the reappropriation legislation. Representative Navarre MOVED to change the source of the reduction proposed in Amendment #4 to the Legislative operating budget. Representative Brown asked the reason for a $3 million dollar increase to the Legislative budget for administrative services. Mr. Greany replied that a new director for the Legislative Affairs Agency was approved by the Legislature which would eliminate the former executive administrative component, combining that with administrative services. Consequently, there now is one component rather than three separate ones. Representative Parnell pointed out that $8 million dollars would be dropped from the Legislative budget. Representative Navarre pointed out that the total amount available to the Legislature in FY93 was $38 million dollars, with $8 million carried forward. He noted that $30.6 million dollars was spent by the Legislature in FY93. He added that the FY95 budget recommends $33.8 million dollars as the available base. Mr. Greany replied that the reappropriation bill would be the appropriate vehicle to make the reduction recommended by Representative Navarre. Discussion followed among Committee members and Mr. Greany regarding legislative carry forward monies. Representative Hanley suggested that there be full discussion of the Legislative budget before making the recommended reductions. Representative Navarre MOVED to WITHDRAW Amendment #4. There being NO OBJECTION, it was withdrawn. Representative Navarre MOVED to WITHDRAW Amendment #5 which would add to statewide maintenance and operations $1,000.0 8 million dollars and would reduce design and construction by $1,000.0 million dollars. Representative Brown OBJECTED to withdrawing the amendment. Representative Navarre MOVED to change the amount proposed in Amendment #5 to $300 thousand dollars and asked the impact to the program with that reduction. RON LIND, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, explained that currently there is $4.4 million dollars in the design and construction component in the operating budget. Representative Foster OBJECTED to removing money from the design and construction component. Representative Brown REMOVED her OBJECTION to withdrawing the amendment. Representative Navarre MOVED Amendment #5 explaining the extensive need for further maintenance and operation of roads throughout the state. Mr. Lind pointed out that the funding for design and construction had been established in each separate region. A roll call vote was taken on the MOTION. IN FAVOR: Parnell, Therriault, Brown, Foster, Hanley, Hoffman, Martin, Navarre, MacLean, Larson. OPPOSED: Foster. The MOTION PASSED (10-1).