HOUSE FINANCE COMMITTEE February 27, 2017 1:02 p.m. 1:02:48 PM CALL TO ORDER Co-Chair Seaton called the House Finance Committee meeting to order at 1:02 p.m. MEMBERS PRESENT Representative Neal Foster, Co-Chair Representative Paul Seaton, Co-Chair Representative Les Gara, Vice-Chair Representative Jason Grenn Representative David Guttenberg Representative Scott Kawasaki Representative Dan Ortiz Representative Lance Pruitt Representative Steve Thompson Representative Cathy Tilton Representative Tammie Wilson MEMBERS ABSENT None ALSO PRESENT Amanda Ryder, Analyst, Division of Legislative Finance; Carol Petraborg, Administrative Services Director, Department of Fish and Game; Karen Forrest, Deputy Commissioner, Department of Health and Social Services; Shawnda O'Brien, Assistant Commissioner, Department of Health and Social Services; Brandon Cullum, Administrative Services Director, Department of Law; Jim Cantor, Deputy Attorney General, Department of Law; Amanda Holland, Admin Services Director, Department of Transportation; Miles Baker, University of Alaska; Representative Louise Stutes. PRESENT VIA TELECONFERENCE Jessica Bogard, Administrative Operations Manager, Division of Public Assistance House Finance Committee 1 02/27/17 1:02 P.M. SUMMARY HB 57 APPROP: OPERATING BUDGET/LOANS/FUNDS HB 57 was heard and HELD in Committee for further consideration. HB 59 APPROP: MENTAL HEALTH BUDGET HB 59 was HEARD and HELD in committee for further consideration. Co-Chair Seaton reviewed the agenda for the day. The committee would be hearing subcommittee reports for the following departments: Department of Corrections (DOC) Department of Fish and Game (DFG) Department of Health and Social Services (DHSS) Department of Law (DOL) Department of Public Safety (DPS) Department of Transportation and Public Facilities (DOT) University of Alaska (UA) Judiciary (JUD) Legislature (LEG) Co-Chair Seaton indicated that the committee would bring up other departments if time allowed. The subcommittee reports were distributed to members the previous Friday and Saturday and were posted online. He asked Representative Kawasaki to begin with the report for DOC. #hb57 #hb59 HOUSE BILL NO. 57 "An Act making appropriations for the operating and loan program expenses of state government and for certain programs; capitalizing funds; amending appropriations; repealing appropriations; making supplemental appropriations and reappropriations, and making appropriations under art. IX, sec. 17(c), Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date." House Finance Committee 2 02/27/17 1:02 P.M. HOUSE BILL NO. 59 "An Act making appropriations for the operating and capital expenses of the state's integrated comprehensive mental health program; and providing for an effective date." 1:03:59 PM Representative Kawasaki provided the subcommittee report for the Department of Corrections. He relayed that the subcommittee met over a series of five meetings for a total of about 9 hours. On the last day, prior to closing out, the subcommittee took up budget amendments. He forwarded 6 amendment recommendations to the co-chairs. Co-Chair Seaton guided members to the amendment section of the packet. Representative Kawasaki reviewed the FY18 budget with recommended Governor and subcommittee amendment totals: Fund Source: (dollars are in thousands) Unrestricted General Funds (UGF): $257,758.2 Designated General Funds (DGF): $8,501.6 Other Funds: $34,652.0 Federal Funds: $7,686.0 Total: $308,597.8 Representative Kawasaki MOVED to ADOPT Amendment 1 [GA 3] (copy on file): Administration and Support Office of the Commissioner GA 3 2/15 Community Resource for Justice Grants from Community Resource for Justice Incorporated will be used to support implementation of justice reform efforts. This is a new request for FY2018 and was not included in the FY2018 governor's request as these grant funds were not available at the time. The Alaska Criminal Justice Commission approved this item in January 2017. House Finance Committee 3 02/27/17 1:02 P.M. Community Resource for Justice Incorporated (CRJ) is a Massachusetts nonprofit corporation that is assisting the State of Alaska with implementation of Justice Reform. The Crime and Justice Institute applied for and was awarded a federal grant from the Bureau of Justice (BOJ), Office of Justice Programs for Criminal Justice Improvement and Recidivism Reduction through the State-Level Justice Reinvestment Initiative. This grant award allows CRJ to issue sub awards in efforts to assist agencies with funding to meet training and statewide coordination needs as approved by CRJ and the BOJ. This grant will fund a Coordinator either through a contract or non-perm position to assist with identifying and addressing ongoing implementation issues, particularly those that span several divisions within the department as well as coordinate between each state and local stakeholders as well as reporting needs for the Alaska Criminal Justice Commission. Co-Chair Foster OBJECTED for the purpose of discussion. Co-Chair Seaton clarified that Amendment 1 was actually Amendment GA 3. Representative Kawasaki agreed. Representative Kawasaki explained that the amendment was passed in the House DOC budget subcommittee. It was originally offered by the governor on February 15, 2017. It included grants to communities from a national organization called Community Resource for Justice Incorporated. The organization obtained much of its funding from the US Department of Justice. The funding was a one-time increment of statutory designated program receipts. The subcommittee discussion surrounded where the money would come from and whether it would supplant general funds. The amendment proposal was forwarded for recommendation. Co-Chair Foster WITHDREW his OBJECTION. There being NO OBJECTION Amendment GA 3 was ADOPTED. 1:07:14 PM AT EASE 1:07:52 PM RECONVENED House Finance Committee 4 02/27/17 1:02 P.M. Co-Chair Seaton explained where members could find the amendment numbers and directed them to refer to their amendments using the same nomenclature. Representative Kawasaki MOVED to ADOPT Amendment H DOC 1 (copy on file): Administration and Support Office of the Commissioner H DOC 1 - Transfer New Professional Conduct Unit from Correctional Academy to Commissioner's Office (TrOut 337896) Linked to H DOC 4 - Transfer New Professional Conduct Unit from Correctional Academy to Commissioner's Office Offered by Representative Kawasaki Transfer the newly created Professional Conduct Unit from the Correctional Academy to the Commissioner's Office where it is more appropriately housed. The new Investigative Unit will work in coordination with the Department of Public Safety, Department of Law and the Office of the Governor to investigate external and internal complaints into alleged misconduct or criminal activities, on the part of all DOC employees, inmates, visitors, and contractors. Co-Chair Foster OBJECTED for the purpose of discussion. Representative Kawasaki reviewed that the amendment was technical in nature and transferred the Professional Conduct Unit currently housed within the Correctional Academy to the Commissioner's Office. He reported a $714,500 undesignated general fund (UGF) transfer and 3 permanent full-time positions. The committee believed it was inappropriate to house the unit within the Correctional Academy. Representative Wilson agreed with the change offered in the amendment. She hoped a larger discussion would ensue regarding the positions, as they were new positions being proposed. She referred to a report about whether there should be an internal or external investigative unit. The report recommended that the unit be external. She was concerned about adding new positions. She remarked that an external investigative unit for any department would be House Finance Committee 5 02/27/17 1:02 P.M. more objective than an internal one. She reiterated her support of the move. Co-Chair Foster WITHDREW his OBJECTION. There being NO OBJECTION, Amendment H DOC 1 was adopted. Representative Kawasaki MOVED to ADOPT Amendment H DOC 2 (copy on file): Administration and Support Information Technology MIS H DOC 2 - Delete Positions and Funding of Four Transferred PCNs from Closed Palmer Correctional Center Offered by Representative Kawasaki This amendment deletes four positions and associated operating costs transferred to this allocation. Savings and positions from the closure of the Palmer Correctional Institution were transferred to this allocation to fund operations of the MIS unit of the Department. This results in four new positions to support MIS operations. These positions are currently vacant and have been since the closure of the institution. Additionally, the Department should not be increasing positions while the Department of Administration is in the process of consolidating information technology in the new Division of Information Technology. This amendment will eliminate this increase of staff to the MIS unit. It will also assist the Department in arriving at the cost savings identified in the fiscal note for SB 91 associated with inmate population reductions. Co-Chair Foster OBJECTED for the purpose of discussion. Representative Kawasaki explained that the amendment resulted from a recommendation made by a member of the budget subcommittee to delete $546,200 UGF and 4 permanent full-time positions, which were previously at the Palmer Correctional Center within the Information Technology Department.