SENATE BILL NO. 83 "An Act making and amending capital, supplemental, and other appropriations, and appropriations to capitalize funds; ratifying certain expenditures; and providing for an effective date." ANNALEE MCCONNELL, Director, Office of Management and Budget was invited to join the committee. She introduced Margaret Pugh. MARGARET PUGH, Commissioner, Department of Correction was invited to join the committee. She explained the overcrowding situation of the prisons. They will never be able to have complete control over what happens in the prison settings due to this situation. She said the amount requested was needed to complete this fiscal year. It was explained that prisoners were often in need of medical care because they were coming from outlying areas, especially at the Cook Inlet Pretrial facility. Because of the volatility of a pretrial institution the situation is less stable. It is necessary to hold staff at these institutions at a specific level and to not reduce them. Inmate health care was requesting $500,000 in the supplemental. DWAYNE PEOPLES, Director, Division of Administrative Services, Department of Corrections was invited to join the committee. He explained that the medical needs have doubled since last year. The cost for providing medical services are continuing to escalate. Co-chair Parnell asked about pharmaceutical costs. These were also continuing to rise. Commissioner Pugh advised the committee that they had done a mental health inmate assessment. It was found there were special mental health cases in the probation and parole program. Senator Phillips asked about the bed count and what it was at presently. Commissioner Pugh said that the bed count was approximately four thousand two hundred sixty beds. There have been some interesting trends in prisoner population this year. At the peak difference from last year, 1997 - 1998, there were about four hundred twenty inmates. Then it leveled off towards the end of the year. Senator Phillips asked about the inmates outside Alaska in Arizona. Commissioner Pugh advised the out-of-state count, including Federal facilities and alcohol treatment related institutions. Senator Phillips asked about the health care request. "If the population hasn't increased what is happening?" Commissioner Pugh said there were approximately 400 more prisoners at the peak time. "We are seeing older inmates and also an incoming population of younger prisoners." They were taking in more young people. At last week's count there were about four hundred inmates, age twenty-one and younger. For the record she noted two sixteen-year olds and two seventeen-year olds. This younger population is growing and presenting special needs. They were also seeing an increasing number of patients with heart ailments and other gastro ailments. Senator Leman said he was concerned in the meteoric rise in mental health costs for the inmates. "Are we becoming smarter about what our mental health needs are or are we somehow getting billed for services? What can we do to manage this?" Commissioner Pugh said they were concerned about the same things. The department was working on how to contain and control these costs. They were also exploring either how to reduce them or at least keep them at the same level. It had been ascertained that medical care services seem to be delivered at the lowest level in the outlying communities. She explained that they were tending to revolving door inmates. This involved trying to help these individuals get stabilized, however then they are released and go back to the outlying areas where no services are provided to help them continue in their rehabilitation and/or medical care. Judge Rhodes in Anchorage handles the mental health cases so that these individuals do not become nameless. Senator Leman outlined an experience he personally had with an inmate from the Cook Inlet Pretrial facility. The medical condition suffered by the inmate was not uncommon, however, medication was expensive. Commissioner Pugh responded, noting that this problem was nation-wide. The medication was expensive and therefore drives up their costs. Senator Leman said perhaps it should be considered whether or not these individuals should be institutionalized. Commissioner Pugh explained what services could be provided at the level they were presently budgeted at. At this point Ms. McConnell spoke specifically to the budget for beds. They were trying to transfer inmates in several large trips to Arizona as contracted with the Federal marshals. She felt this was a successful undertaking. Mr. Peoples' also commented and said there had been one consolidated supplemental request from the Department of Public Safety and the Department of Corrections for the transport of prisoners. Senator Leman asked if there was any contract with the airlines for prisoner transportation. He wanted to know if top dollar was being paid for these transports? Mr. Peoples said he did not feel there was any special rates. For security reasons these transports are kept secret. They try to do them in small batches and if airlines are used these are done at full fare. Commissioner Pugh said they are still looking for the most inexpensive way to transport the prisoners out of state and felt that contracting with the Federal marshals was the best. For instate flights they try to make sure they have several inmates at once so they can use charter. Senator Phillips asked about the airline tickets. "Do we pay full fare?" Mr. Peoples said they did not have a fare arrangement with the airlines. Senator Phillips asked if it was possible to negotiate a possible book fare for the transportation of the prisoners. Commissioner Pugh said she would check into this matter. Ms. McConnell said that Commissioner Boyer had looked extensively into this last year but Alaska Airlines was unwilling to provide any negotiated rates for State employees or for State use. Senator Phillips said that Alaska Airlines should provide better fares for such a big user as the State, or else find someone else. Senator Green asked for a breakdown regarding the health and medical requests of the inmates. Commissioner Pugh said it was all out of state requests in this supplemental portion. (Out of state inmates) She said they did try to screen the inmates regarding their health and medical problems and special needs. In addition, probation and parole officers also monitor these. Senator Adams asked about the balance. Mr. Peoples did not know but said he would provide it. Vendors concerned about furniture contacted Senator Leman. Furniture was being purchased at a premium rather than on a competitive market. Therefore, there were no benefits. Commissioner Pugh said that a commission had been appointed to oversee this matter. They had to insure there was a minimum impact regarding this. The commission had contact with various office supply companies in the State who meet quarterly and then advertise their needs. She will provide a breakdown to the committee. Mr. Peoples noted three reductions included in the supplemental. They were a reduction of beds in CRC, known culture reductions and delays in obtaining a bid in Nome. There was also delay in obtaining permits through the City and the Courts. In response to a question from Senator Leman, Mr. Peoples said there had been difficulty in obtaining the beds in Fairbanks. This resulted in the whole procurement of beds being delayed. Senator Adams asked about the beds for the Bethel facility? Commissioner Pugh said they were working on this matter. Co-chair Parnell directed the Commissioner's attention to the memo from Senator Ward. He asked her to please address these questions. With respect to the committee she said she had not had time to look the memo over but will respond in writing to the committee as soon as possible. Co-chair Parnell then turned to section four of SB 83, judgments and claims. BARBARA RITCHIE, Deputy Attorney General, Civil Section, Department of Law was invited to join the committee. She gave a short overview of judgments and claims in general. (Tape #36 switched to Side B at log 593.) Senator Donley briefly commented and said he would like a little more detail regarding these. He referred to item these matters in writing. Senator Donley referred to Trustees for Alaska, Kachemak Bay Conservation Society vs. State of Alaska. He said the committee should be examining a modification of this case. Ms. Ritchie said it was now pending before the Supreme Court. She explained the central issues of this case. The case was remanded to the agency. Senator Donley said the rules had evolved over time. She explained the Supreme Court's interpretation of the case. Senator Donley interrupted saying perhaps a statutory change was needed here. Senator Leman concurred. Senator Torgerson asked if the State assumed they were going to win the appeal? Ms. Ritchie said they hoped they would win it. She went on to explain that in the event the State loses, it may be at a lesser attorney fees amount. Senator Phillips asked what happened if the Legislature refused to fund any of these cases? "Isn't there a separation of powers? What would the Courts do?" Ms. Ritchie said there would be a "separation of powers" issue. Senator Phillips said in that case, then, the Legislature would win because they were the ones appropriating the money for payment of the judgments. Ms. Ritchie felt the matter would end up being litigated, however, if the Legislature refused to fund the judgments. Senator Donley referred to the apportionment of fees regarding item #5. Perhaps the statute should be tightened up. He strongly stated that someone should be held accountable. There was no accountability by the individuals involved and further, no one was being held accountable for the payment of these huge judgments. He did not want to see this situation continuing in the future. Co-chair Parnell asked if there were any more questions on Kachemak Bay as he wanted to continue on to the Y2K section. There followed a brief at ease approximately 10:05 a.m. until 10:15 a.m. Co-chair Parnell called HB 64.