MINUTES OF THE JOINT SUBCOMMITTEE MEETING OF SENATE COMMITTEE ON FINANCE AND ASSEMBLY COMMITTEE ON WAYS AND MEANS Sixty-eighth Session June 6, 1995 The joint subcommittee meeting on Public Safety/Natural Resources/Transportation of the Senate Committee on Finance and the Assembly Committee on Ways and Means was called to order by Chairman Lawrence E. Jacobsen, at 7:30 a.m., on Tuesday, June 6, 1995, in Room 352 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. SENATE COMMITTEE MEMBERS PRESENT: Senator Lawrence E. Jacobsen, Chairman Senator William R. O'Donnell Senator Bernice Mathews ASSEMBLY COMMITTEE MEMBERS PRESENT: Mr. Larry L. Spitler, Chairman Mr. Thomas W. Fettic, Chairman Mr. Morse Arberry, Jr. Mr. Jack D. Close Ms. Chris Giunchigliani Mr. John W. Marvel STAFF MEMBERS PRESENT: Dan Miles, Fiscal Analyst Gary Ghiggeri, Principal Deputy Fiscal Analyst Jeanne L. Botts, Program Analyst Marion Entrekin, Committee Secretary OTHERS PRESENT: George M. Weeks, III, Assistant Director, Fiscal and Support Services, Department of Prisons John E. Neill, Chief, Fiscal and Support Services, Department of Prisons John I. Slansky, Assistant Director of Operations, Department of Prisons Robert Bayer, Director, Department of Prisons George Kaiser, M.D., Medical Director, Department of Prisons Daniel M. Daily, Regional Professional Engineer, State Public Works Board, Department of Administration Roy W. Trenoweth, State Forester Firewarden, Division of Forestry, State Department of Conservation and Natural Resources R. Ronan Thornhill, Forestry Staff Specialist, Conservation Camps, Division of Forestry, State Department of Conservation and Natural Resources Mike Nolan, Budget Analyst, Budget Division, Department of Administration Gary Ghiggeri, Principal Deputy Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, began his testimony by reading from prepared text (Exhibit C). He explained the budget closing action sheets (Exhibit D) provide for the closure of the Department of Prison's budget at an additional cost of approximately $1.5 million in Fiscal Year 1996 and $3 million in Fiscal Year 1997. (Exhibit D. Original is on file in the Research Library.) Mr. Ghiggeri said Exhibit D also provides for the privatization of a 400-bed female facility in southern Nevada envisioned to be a multi-custody facility that will house inmates that are currently housed at the Nevada Women's Correctional Center (NWCC), the Jean Conservation Camp (JCC), and the Southern Nevada Restitution Center. It is also envisioned that a portion of the inmates that are housed at the JCC will be relocated to the Silver Springs Camp in order to ensure that 112-bed facility will operate at capacity, since it is restricted by deed to house female inmates exclusively. Mr. Ghiggeri said it is planned that a number of the minimum-custody inmates that will be housed at the new southern Nevada private women's facility will work in the community, similar to the ones that are currently housed in the restitution center, to earn their room and board. The majority of the adjustments included in the closing sheets (Exhibit D) are driven by the increase in the inmate population that has been experienced by the Department of Prisons (DOP), Mr. Ghiggeri said, and by certain "inmate-driven" costs that fluctuate depending upon the number of inmates housed in the facilities. Ms. Giunchigliani asked for the estimated cost to operate the private women's facility in southern Nevada. Mr. Ghiggeri stressed the estimated cost to operate the private facility is $3.3 million for January, 1997, through June, 1997, which is based upon a blended rate averaging about $53 per day, and upon housing 350 inmates. He stated he has received information from two vendors indicating the costs could run as low as $40 and as high as $55 per day. Ms. Giunchigliani asked if the estimated costs include medical care. Mr. Ghiggeri replied a limited amount of medical cost is included, but he is unsure of the actual amount. He remarked some vendors have advised him medical care will be provided to inmates in prison facilities, but once the inmate goes to a hospital, it will become a state responsibility. Other proposals from vendors have indicated psychiatric and medical staff will be provided at the facility. Ms. Giunchigliani asked for clarification regarding the cost to convert the women's facility in Carson City to an all male facility. Mr. Ghiggeri responded the State Public Works Board has provided a preliminary estimate of $7.6 million to convert the Nevada Women's Correctional Center (NWCC) to an all male facility, and to add an additional 125 beds. He pointed out this is about $4 million more than was recommended in the Governor's Executive Budget for this project. He stated the additional cost will also provide for other needed improvements such as fencing and two guard towers. Prison Director's Office - Page 1535 Mr. Ghiggeri referred to the closing action sheet (Exhibit D) for this account and provided an explanation of the major recommended adjustments. He pointed out Exhibit D assumes the passage of Assembly Bill (A.B.) 389 to provide the Director of the DOP the authority to assess the Inmate Store Fund for medical copayments, prescription copayments, gate release funds, and numerous other items that are currently funded through the state's General Fund. ASSEMBLY BILL 389: Revises provisions governing payment of certain expenses of offender incarcerated in state prison. Based upon this adjustment, Mr. Ghiggeri wanted the committee to be aware the savings to the state's General Fund will amount to approximately $600,000 in the first year, and $800,000 in the second year of the biennium. MR. MARVEL MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D. MR. FETTIC SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * SENATOR O'DONNELL MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Prison Warehouse Fund - Page 1549 Mr. Ghiggeri indicated this budget was recommended for closure by the subcommittee on May 26, 1995. Offender's Store Fund - Page 1553 Mr. Ghiggeri stated this budget provides funds to the Prison Director's Office and the Medical Care Budget, and adjustments related to Inmate Gate Money and Inmate Medical Care are dependent upon the approval of A.B. 389. Estimates at this time indicate General Fund savings may accrue of approximately $658,000 in Fiscal Year 1996, and $792,000 in Fiscal Year 1997. Mr. Arberry referred to the transfer to the director's office of $629 in Fiscal Year 1996, and $583 in Fiscal Year 1997 shown in the budget closing action sheet, and asked the reason for the transfer of the funds. Mr. Ghiggeri replied this is for equipment utilized by staff housed in the director's office that work in the Offender's Banking Program. Decision unit E-902, which is not reflected in the closing sheets, transfers all of the costs back to the Offender's Store Account. Mr. Ghiggeri said there are a number of positions in the director's budget that are assigned responsibility for inmate banking services, and are funded out of this account. Ms. Giunchigliani noted decision unit E-250 will provide funds for travel, operating, and equipment costs associated with the Literacy Program. Mr. Ghiggeri responded this is an initiative by the Governor to address inmate literacy within the DOP through services of an education consultant, four academic teachers, and a program assistant hired by the department and utilized throughout the prison system. Ms. Giunchigliani asked why an enhancement is needed to this budget account since each of the school districts provide educational instructors. George M. Weeks, III, Assistant Director, Fiscal and Support Services, DOP, testified the present illiteracy rate within the DOP is at 56 percent. The Literacy Program recommended by the Governor is intended to supplement the programs that are currently offered by the school districts within the DOP. Ms. Giunchigliani asked what hiring practices are being used by the DOP to acquire teachers. Mr. Weeks stated the individuals must be knowledgeable regarding education and literacy-related programs. Ms. Giunchigliani remarked, "If you are going to hire academic teachers, they darn well better be qualified and have a teacher license. You do not have to be a literacy specialist to handle literacy." In response to questions by Ms. Giunchigliani regarding funding for the positions, Mr. Weeks replied the consultant and four teachers presently retain classified positions through the state system. Ms. Giunchigliani said she was unaware the State of Nevada employs academic teachers. John E. Neill, Chief, Fiscal and Support Services, DOP, interjected the Nevada Youth Training Center operates a school, and the department goes through this center to acquire teachers. MR. MARVEL MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D. MR. FETTIC SECONDED THE MOTION. THE MOTION CARRIED. (MS. GIUNCHIGLIANI VOTED NO.) * * * * * SENATOR MATHEWS MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Inmate Welfare Account - Page 1561 After providing an overview of the recommended adjustments to this account, Senator Mathews stated she is baffled by the provision within the budget to provide for an inmate satellite television system. She expressed surprise the inmates are free to watch television in their cells since she believes this is a privilege that should only be available in a recreation room. She commented, "Is it a common practice to furnish the inmates with cable television? I would have no problems with books. Is cable television available in every cell in the new Lovelock Correctional Center (LCC)?" John I. Slansky, Assistant Director of Operations, DOP, said there is a satellite television system in the LCC, and it is hooked up to every cell in the institution. Senator O'Donnell asked if the satellite system can be turned off to a particular cell (in the LCC). Mr. Slansky responded the satellite can be turned on or off, but not individually to the cells. Senator O'Donnell asked if the prison uses the satellite system as a management tool to keep the inmates in line. Mr. Slansky responded in the affirmative. Ms. Giunchigliani said she was offended when she first heard about the availability of cable television within the prisons. However, due to the remote areas in which most of the prisons are located, the majority of the inmates are only able to access the standard three or four channels and must purchase their own television sets from the prison store generating some revenue back into the prison system. Robert Bayer, Director, DOP, pointed out since antennas can be used as weapons, they are removed from all television sets prior to placement anywhere within the prison facilities. He also stressed if the department must go into a controlled movement situation or if inmates are in a protective custody situation, television can be used for delivery of educational services. MR. MARVEL MOVED TO RECOMMEND THE BUDGET BE CLOSED IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D. Mr. Fettic asked if the DOP can break into televised programming to provide their own telecast for emergency purposes. Mr. Bayer stated this can be done. MS. GIUNCHIGLIANI SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * SENATOR MATHEWS MOVED TO RECOMMEND THE BUDGET BE CLOSED IN ACCORDANCE WITH STAFF RECOMMENDATIONS AS REFLECTED IN EXHIBIT D. SENATOR O'DONNELL SECONDED THE MOTION. Senator Mathews said she is still not comfortable with the amount of revenue shown in many of the department's budgets that is designated for upgrades to the existing satellite system. She commented, "My comfort level is not good relative to the Inmate Welfare Account. It is not welfare like I know it." Mr. Bayer replied he does not know how the budget account was designated, but it is a fiduciary account for revenue collected and transferred from the Offender's Store Fund for maintenance of the inmate law libraries, and for the benefit of all the inmates. Senator Mathews said the budget account should be renamed. Ms. Giunchigliani agreed the title is misleading. THE MOTION CARRIED UNANIMOUSLY. * * * * * Offender's Store Fund - Page 1553 Ms. Giunchigliani requested the opportunity to make another motion on the Offender's Store Fund to request a Letter of Intent to require a report be provided relative to the Literacy Program. Senator Jacobsen requested another motion be made in concurrence with Ms. Giunchigliani `s request, and that the first motion for this budget account be rescinded. Ms. Giunchigliani remarked: I do not recall the issue of an expanded program being mentioned regarding the Literacy Program. Could we do a Letter of Intent that the prison industry will have to report back the number of inmates, what program they completed...some performance indicators to justify the continuation of this program? They say they have a 56 percent illiteracy rate. Where did they target? What did they do with it? Where did they house these individuals? At least we have some awareness of whether this program is going to work. It is needed, but I want to make sure we are not duplicating something and just giving you a new program...if that would be acceptable? Mr. Neill stated the Letter of Intent will be acceptable. He stated the department has planned to perform a study anyway to know if the Literacy Program is an effective tool. MS. GIUNCHIGLIANI MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D, AND THAT A LETTER OF INTENT BE ISSUED TO REQUIRE THE DOP TO REPORT TO THE INTERIM FINANCE COMMITTEE ON AN ANNUAL BASIS REGARDING THE STATUS OF THE LITERACY PROGRAM. MR. SPITLER SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ** * * * SENATOR O'DONNELL MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D, AND THAT A LETTER OF INTENT BE ISSUED TO REQUIRE THE DOP TO REPORT TO THE INTERIM FINANCE COMMITTEE ON AN ANNUAL BASIS REGARDING THE STATUS OF THE LITERACY PROGRAM. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Destitute Prisoners' Fund - Page 1565 Mr. Ghiggeri stated this budget account was recommended to be closed by the subcommittee during a meeting held on May 26, 1995. Prison Medical Care - Page 1567 There are a number of enhancements recommended for this budget account by the Governor, Mr. Ghiggeri said. He briefly outlined some of the remarks reflected on page 13 of Exhibit D. Mr. Ghiggeri called the subcommittee's attention to Item 2 that recommends a Letter of Intent be sent to the DOP to require the implementation of a program to account for the patient load of the psychiatrists and psychologists. Referencing Item 5 of Exhibit D, Ms. Giunchigliani noted the addition of a Statewide Substance Abuse Coordinator for the department. She asked if the recommendation refers to an additional coordinator. Mr. Ghiggeri responded the position is a Substance Abuse Coordinator for the DOP that was previously funded through grant funds to oversee the operation of the Driving Under the Influence (DUI) Substance Abuse Program to ensure consistent operations between the northern and southern Nevada prisons. He indicated the position is separate from the coordinator assigned to the Division of Parole and Probation (P & P). Ms. Giunchigliani remarked she was under the assumption the Substance Abuse Coordinator assigned to the Division of P & P would also handle the Driving Under the Influence (DUI) Substance Abuse Program at the prisons. Mr. Ghiggeri clarified the coordinator assigned to the Division of P & P will deal only with the concerns of the Division of P & P. Ms. Giunchigliani stated she hopes the subcommittee will receive a report regarding the performance of this individual. She stated: Too often we put a person in a position and they cannot accomplish the job because of the location or the volume of programs. I do not know exactly what does exist. Maybe that is part of what the prison is looking at...to try to coordinate everything. Drug money in the United States...we get so many grants...there is so much waste in drug money right now coming in on drug education programs and nobody knows where it is at and where the dollar is really going. Maybe they can at least get a handle on some of that. Senator Mathews asked why Office and Other Equipment for the nursing units was deleted in two of the budget categories. Mr. Ghiggeri replied correspondence with the DOP and the Department of Administration indicated funding was placed in the budget for the units that should not have been included. The nurses do not routinely require executive units, Mr. Ghiggeri said. Senator Mathews retorted: They are nurses that provide hands-on care to the patients. The nurses have to go someplace else when they are not with a patient, and they need a unit. I know because I am a nurse. It always seems like those are the people that get cut out first. It bothers me. You tell me hands- on and they are going to be sitting around holding the patient's hands all day. They are not. You should not be cutting that unit out. Senator Mathews asked if the deletion of the nursing units pertains to all areas or just the LCC. Mr. Ghiggeri said the deletion regards the Prison Medical Care budget only, and is for the new nursing positions indicated. Mr. Spitler asked the amount being spent, per inmate, in the medical field based on projected costs in this budget account, including factoring in all salaries. He clarified, "You are building your budget on how much medical care per inmate. If you were to divide it out, the average cost." Mr. Neill replied in Fiscal Year 1994 the DOP spent $3,297 per inmate, per year. This amount included all medical costs, positions, and all inside and outside provider care. Senator Jacobsen asked what percentage of the prison inmates require medical care. George Kaiser, M.D., Medical Director, DOP, stated he was unable to provide an accurate percentage since all inmates require medical care when intake screening is performed. The percentage of inmates with serious mental illness is approximately 14 percent, but this percentage cycles during periods of remission. Dr. Kaiser explained he is unable to provide an accurate percentage relative to the medical area because of fluctuations due to injuries. He explained if there is no trauma the percentage will vary. Referring to the aforementioned $3,297 cost per inmate, Mr. Spitler asked how this compares nationally. Dr. Kaiser responded Nevada ranks in the top third nationally for medical costs per inmate. Dr. Spitler asked why this is so. Dr. Kaiser replied there are a multitude of factors that contribute to the ranking. He said most states have what is termed a "Compassion of Release" process whereby inmates with terminal illnesses can be released from prison and placed on Medicaid or Medicare. Nevada also has a high rate of charges for hospitalization services, Dr. Kaiser said, and the number of prison inmates requiring hospitalization was up last year. Also contributing is the fact the department routinely screens individuals for Human Immunodeficiency Virus (HIV) upon entrance into a prison facility. Although the HIV screening adds a large expense into the budget, it does benefit society and the individual inmate, Dr. Kaiser pointed out. He summarized by screening for HIV, the DOP is identifying a problem and dealing with it while incurring an expense. Mr. Spitler asked if the estimated cost, per inmate, includes dental care. Dr. Kaiser responded in the affirmative. Mr. Close called Mr. Ghiggeri's attention to item 3 on page 13 of Exhibit D regarding a potential supplement of between $700,000 and $1 million that is forthcoming from the (prison's) Medical Division for Fiscal Year 1995. He asked if the amount will be included if A.B. 389 is passed. Mr. Ghiggeri responded the supplemental appropriation will not be affected by the passage of A.B. 389. Mr. Marvel asked if the passage of A.B. 389 will have an impact on medical expenses within the prison system. Mr. Neill replied the DOP has added an additional copayment for pharmaceuticals that may help to reduce the medical costs. The passage of A.B. 389 will only guarantee the revenue will come out of the profits of the Offender's Store Fund to be placed into the Prison Medical Care budget. Dr. Kaiser believes a pharmacy charge will reduce the number of prescriptions that are being filled. According to Ms. Giunchigliani's understanding, not all of the prison's psychiatrists and psychologists have to be licensed. She asked if these individuals can write prescriptions. Dr. Kaiser answered all physicians in the State of Nevada must be licensed by the Nevada State Board of Medical Examiners, including psychiatrists which are considered to be physicians. Psychologists in the prison system are not required to be licensed since they are not considered to be physicians, Dr. Kaiser clarified, and they cannot write prescriptions. Ms. Giunchigliani asked the DOP to provide a breakout to the subcommittee regarding the percentage of pharmaceutical costs. Dr. Kaiser said although it has been under consideration, the DOP does not have a pharmacy tracking system to monitor the number of prescriptions that are filled to determine prescribing patterns. Mr. Neill believes funding has been proposed to institute a pharmaceutical tracking system to be developed under the guidance of the prison's data processing section. Ms. Giunchigliani suggested the department work with the State Board of Pharmacy, since they already have a program in place, to shorten the time the prison's data processing unit will spend on the development of a program. Mr. Neill agreed the department will look into what is available. Senator Mathews noted a position assigned to the Substance Abuse Program had been deleted which prompted her to ask if substance abuse cases are treated in the same manner as a regular medical case. Mr. Neill pointed out the position deletion was recommended by the Budget Division and not the DOP. Mr. Neill stated due to the deletion, the department will not be able to expand the Substance Abuse Program within the prison system. Senator Mathews requested a response from a representative of the DOP regarding why a nursing unit is not reflected in the Prison Medical Care budget. Dr. Kaiser answered there are areas in the infirmary and regional medical facility that can be used by nurses. Senator Mathews asked, "They don't have anywhere apart from the patient?" Dr. Kaiser replied there is a separate area such as a lounge or a break room that can be utilized by the nurses. Senator Mathews responded, "No. I mean desk space. A desk for them to do their writing for their nursing paperwork. I want to know why it was omitted for the nurse." Dr. Kaiser replied, "There is a nursing station and in the clinic there is plenty of countertops for people to write on." Senator Mathews interjected, "You don't stand around writing on countertops. I will bet you have a desk." Dr. Kaiser admitted he has a desk and an office, and Senator Mathews replied, "That is my point." She requested funding be appropriated in this budget to provide for nursing units in the prison system. Senator O'Donnell wished to revisit the comment made by Mr. Neill about the department writing their own pharmaceutical tracking program. He stated there are software packages already available in computer stores containing drug interaction programs that would take the department years to write. Mr. Neill replied the department cannot use a stand-alone program since it must be meshed into the prison's inmate tracking system to be used in all of the facilities. Senator O'Donnell suggested the department take a very careful look at what is available already. Senator O'Donnell asked Mr. Ghiggeri to address the issue of providing physicians and medical treatment to the Ely State Prison (ESP). Mr. Ghiggeri indicated Exhibit D does not provide for the privatization of medical services in Ely, but he believes the ESP does have a valid proposal from a vendor to provide for the privatization of "turnkey" medical services at the ESP. He suggested there are a number of things the subcommittee can do to provide for medical care in the ESP such as closing the budget as it is, or closing the budget as it is but instructing the DOP to pursue the privatization of medical services. He also suggested language could be incorporated into the Appropriations Act. Mr. Ghiggeri wished to call the subcommittee's attention to the fact that A.B. 389 not only provides the Director of the DOP the authority to assess the Offender's Store Fund for certain costs that are currently being picked up by the General Fund, it also broadens the director's authority for costs he can assess to the inmates. Mr. Spitler remarked he has not seen a proposal regarding the need for privatization, and asked if this information has been distributed to the committees. Mr. Ghiggeri stated he does not have information available at this time, but after the 1993 session of the Legislature, a Request for Proposal (RFP) went out but was never acted upon. Although he has a copy of the RFP, Mr. Ghiggeri said he does not have a copy of the proposal. Mr. Spitler stated he would like to see the justification for privatization to determine the current status and the benefit it will have to the state. Mr. Bayer indicated he can provide the subcommittee with copies of documentation regarding privatization. Senator Jacobsen asked that the information be provided to the subcommittee by Thursday, June 8, 1995. Mr. Ghiggeri interjected he does not believe an analysis regarding a medical treatment program or privatization can be furnished to the subcommittee within a 2-day time frame. Mr. Neill suggested if the subcommittee is interested in closing this budget account today, a Letter of Intent should be issued requesting the department appear before the Interim Finance Committee (IFC) upon adjournment of the current session regarding a medical treatment program. He explained the department also requires a longer time period to gather the requested information. He pointed out the department has requested the addition of a contract monitor position to the budget for the Prison Director's Office or Prison Medical Care to assist in monitoring the required contract. Senator O'Donnell asserted the subcommittee should extend the DOP the latitude to contract or retain their present situation so they will have the flexibility to obtain the "best treatment at the best price." SENATOR O'DONNELL MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D; ALLOW THE DOP TO COME BEFORE THE IFC WITH A WORK PROGRAM, AND UPON APPROVAL OF THE IFC, ALLOCATE FUNDS FOR THE MEDICAL TREATMENT PROGRAM; ISSUE A LETTER OF INTENT REGARDING THE PATIENT WORK LOAD OF THE PSYCHIATRISTS AND PSYCHOLOGISTS; ISSUE A LETTER OF INTENT REGARDING THE PATIENT WORK LOAD IN GENERAL; AND ISSUE A LETTER OF INTENT REQUIRING THE DOP TO PROVIDE A REPORT BEFORE THE IFC REGARDING THE SUBSTANCE ABUSE COORDINATOR. Senator O'Donnell pointed out the department should consider reducing the amount of funds that are in the prison's existing work program until the other medical program is established. Mr. Neill said the department will continue to operate using the funds that are in the budget as currently recommended until they come before the IFC. At that time, the department will remove the portion of costs that are associated with medical care at the Ely State Prison to be placed into a separate category. The funds that are removed and designated for the ESP could then become available for the contract. Senator Mathews asserted, "You treat the prisoners better than you do the help." Mr. Bayer responded the Regional Medical Facility does have a very large work and desk area situated in a circular configuration, and there are desks placed within this circular configuration that are used by the nurses for paperwork. Although this work station is in an open area, everything is available for their use such as telephones, files, and other office equipment. Mr. Bayer invited Senator Mathews to tour the medical facility in order to personally observe the work area. Ms. Giunchigliani inquired if the Regional Medical Center opened before or after the RFP for medical costs was issued. Dr. Kaiser responded the mental health section opened in 1993 and the medical section opened in January, 1994. She wondered if the RFP takes into account the concept of the Regional Medical Center. She continued by stating: So that we do not have an independent contractor that is bidding for certain costs in Ely that the Regional Medical Center was established and we provided funding for to accommodate. I guess when you present to IFC if you could show us the rationalization because I do not want to pay twice for something we supposedly did when we created the regional concept, and then have a private contractor in addition providing those services if our intent was to have some of them handled through the regional center. I think we should make sure we are not paying twice to be included in the report that they come back to IFC. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * MR. FETTIC MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D; ALLOW THE DOP TO COME BEFORE THE IFC WITH A WORK PROGRAM, AND UPON APPROVAL OF THE IFC, ALLOCATE FUNDS FOR THE MEDICAL TREATMENT PROGRAM; ISSUE A LETTER OF INTENT REGARDING THE PATIENT WORK LOAD OF THE PSYCHIATRISTS AND PSYCHOLOGISTS; ISSUE A LETTER OF INTENT REGARDING THE PATIENT WORK LOAD IN GENERAL; AND ISSUE A LETTER OF INTENT REQUIRING THE DOP TO PROVIDE A REPORT BEFORE THE IFC REGARDING THE SUBSTANCE ABUSE COORDINATOR. MR. MARVEL SECONDED THE MOTION. THE MOTION CARRIED. (MR. ARBERRY WAS ABSENT FOR THE VOTE.) * * * * * Restitution Center South - Page 1577 Restitution Center North - Page 1581 Mr. Ghiggeri indicated the aforementioned budgets were closed by the subcommittee at their May 26, 1995 hearing but since that hearing, it was determined the facility in the south will become an all male facility. There will be no change in the costs to the budget accounts, Mr. Ghiggeri said. Prison Industry - Page 1585 An overview concerning this budget account was provided by Mr. Ghiggeri in accordance with the information contained in Exhibit D. MR. MARVEL MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D. MR. FETTIC SECONDED THE MOTION. THE MOTION CARRIED. (MR. ARBERRY WAS ABSENT FOR THE VOTE.) * * * * * Ms. Giunchigliani asked if the Lovelock Correctional Center (LCC) is included in the Prison Industry budget account. Mr. Ghiggeri replied there is no obligation for the operation of the LCC included in this account since it will not be operational until at least July, 1997. The completion of the required buildings for the LCC is tied to the construction of Units 3, 4, and 5. He stated there is no program identified. SENATOR O'DONNELL MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Senator Jacobsen returned the subcommittee's attention to decision module M-625 for the Prison Director's Office, and noted funding is included for rental of Sani-Huts for use at the Department of Prison's shooting ranges. He suggested whenever the range is in use the department borrow one of the existing Sani-Huts located at one of the honor camps. Prison Dairy - Page 1589 Mr. Ghiggeri stated the only adjustment deletes funding for unidentified equipment, and transfers the funds to the Retained Earnings category. He stated once the equipment is identified, the prison director can approach the IFC to transfer the funds back into this budget account. MR. SPITLER MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D. MR. FETTIC SECONDED THE MOTION. THE MOTION CARRIED. (MR. MARVEL WAS ABSENT FOR THE VOTE.) * * * * * SENATOR MATHEWS MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Prison Industry Capital Projects - Page 1593 MR. MARVEL MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH THE GOVERNOR'S RECOMMENDATIONS. MR. SPITLER SECONDED THE MOTION. THE MOTION CARRIED. (MR. ARBERRY AND MS. GIUNCHIGLIANI WERE ABSENT FOR THE VOTE.) * * * * * SENATOR MATHEWS MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH THE GOVERNOR'S RECOMMENDATIONS. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Southern Nevada Correctional Center - Page 1595 Mr. Ghiggeri indicated the adjustments included in this budget are to provide for an increase in utility costs predicated upon an estimated increase in the number of inmates to be housed in the Southern Nevada Correctional Center (SNCC) facility since it reopened in Fiscal Year 1994. It is expected this facility will operate under the emergency threshold levels in the 1995 - 1997 biennium, Mr. Ghiggeri said, which is facilitated by the privatization of the women's facility which will free additional beds for inmates. MR. MARVEL MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D. MR. CLOSE SECONDED THE MOTION. Mr. Spitler asked if all of the capital improvement projects (CIPs) that were authorized in 1993 have been completed. Mr. Ghiggeri said there is a sprinkler project and an underground utility problem still being worked on at this facility that will carry over into the next biennium. Daniel M. Daily, Regional Professional Engineer, State Public Works Board, Department of Administration, remarked the only job he is aware of that is not complete is the underground electrical project. Mr. Spitler asked if there are reports available to indicate the status of CIPs that have been completed within the last year or are still pending. Mr. Daily relied a monthly report is available that will provide information concerning all CIPs. THE MOTION CARRIED. (MR. ARBERRY AND MS. GIUNCHIGLIANI WERE ABSENT FOR THE VOTE.) * * * * * SENATOR MATHEWS MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Southern Desert Correctional Center - Page 1601 Mr. Ghiggeri highlighted the major adjustments for the budget account by referencing Exhibit D, and pointed out the adjustments for the inmate-driven costs reflected for this account are similar to the adjustments for the SNCC. Additionally, the Governor's revised budget recommended the addition of a Correctional Sergeant to provide 7-day coverage in the Administrative and Disciplinary Segregation Detention Unit. MR. MARVEL MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D. MR. SPITLER SECONDED THE MOTION. THE MOTION CARRIED. (MR. ARBERRY AND MS. GIUNCHIGLIANI WERE ABSENT FOR THE VOTE.) * * * * * SENATOR O'DONNELL MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Ely State Prison - Page 1607 Exhibit D was referenced while Mr. Ghiggeri outlined the proposed adjustments to this account. MR. SPITLER MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D. MR. MARVEL SECONDED THE MOTION. THE MOTION CARRIED. (MR. ARBERRY AND MS. GIUNCHIGLIANI WERE ABSENT FOR THE VOTE.) * * * * * SENATOR MATHEWS MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Lovelock Correctional Center - Page 1613 Mr. Ghiggeri said the recommended adjustments will provide for the opening of this facility on July 1, 1995 instead of October, 1995 as recommended initially by the Governor. There is no staff recommended in this budget for the Phase II opening since it is envisioned the new facility will not be operational until at least July, 1997. MR. MARVEL MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D. MR. SPITLER SECONDED THE MOTION. THE MOTION CARRIED. (MR. ARBERRY AND MR. FETTIC WERE ABSENT FOR THE VOTE.) * * * * * SENATOR O'DONNELL MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Nevada State Prison - Page 1617 Mr. Ghiggeri referenced Exhibit D and said the adjustments are mainly attributable to inmate-driven costs for such things as personal hygiene supplies, clothing, and food. SENATOR O'DONNELL MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * MR. SPITLER MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D. MR. CLOSE SECONDED THE MOTION. THE MOTION CARRIED. (MR. ARBERRY AND MR. FETTIC WERE ABSENT FOR THE VOTE.) * * * * * Northern Nevada Correctional Center - Page 1623 When the Stickney Agreement becomes effective in approximately September, 1996 to run through December, 1996, Mr. Ghiggeri said the recommended adjustments will provide for the addition of 25 staff members to cover for housing 144 additional inmates in Units 1, 2 and 3, and 40 additional inmates in Unit 7. Mr. Ghiggeri stated once the private women's facility comes on-line at the anticipated date of January, 1997, the inmates that are running over the threshold level in this facility will be transferred to the converted women's facility to house male inmates. Mr. Ghiggeri said at that time, 22 of the 24 correctional officers will be relocated to the NWCC which will become a male facility, and utilized for the guard towers and other security posts identified by the DOP based upon the conversion of the facility to a male facility. MR. MARVEL MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D. MS. GIUNCHIGLIANI SECONDED THE MOTION. THE MOTION CARRIED. (MR. ARBERRY AND MR. FETTIC WERE ABSENT FOR THE VOTE.) * * * * * SENATOR O'DONNELL MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Southern Nevada Private Women's Facility - No page number assigned Mr. Ghiggeri said this budget did not exist in the Governor's Executive Budget upon presentation to the Legislature. He explained this new account is for what he has termed the new Southern Nevada Private Women's Facility, and it has been recommended to provide approximately $3.3 million from the General Fund in the 1995 - 1997 biennium, and to grant authority to receive transfers from the Offender's Store Fund for a medical copayment of approximately $15,000. He referred the subcommittee to page 30 of Exhibit D that indicates there will be an average of 171 inmates housed in the new facility during the period January through June, 1997. Mr. Ghiggeri stated this figure will probably be closer to 350 housed at the facility during that time period. Based upon information that Mr. Ghiggeri has been able to accumulate, he has estimated a cost of approximately $45 to $55 per inmate per day for the operation of this facility. He assumes there may be a difference in costs based upon the custody level and staffing that will be required. He clarified a community- trustee inmate probably will not necessitate the level of staffing that will be required for somebody in the facility the entire time. Mr. Ghiggeri stated his estimation of costs is based upon discussion this facility may be privatized. Mr. Ghiggeri remarked there has also been discussion regarding how the DOP will evolve from its present operation to the operation of a private facility. In 1987 the DOP was faced with a similar situation whereby a need for additional beds was required in a short time frame, and legislation was approved to provide the State Public Works Board (SPWB) to "sole source" the construction of modular housing units at the Nevada State Prison (NSP) and Southern Desert Correctional Center (SDCC). He referred the subcommittee to Exhibit E, a copy of legislation that was approved by the 1987 Legislature to provide for the emergency modular housing. In his discussions with the Legal Division of the Legislative Counsel Bureau, it was determined a similar approach can be taken to provide for housing at the women's facility using the sole- source contract method. He referred the subcommittee to Exhibit F, a memorandum from the Legal Division dated June 5, 1995, confirming there will be no problem with the use of a sole-source contract. MR. MARVEL MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D, AND TO ISSUE A BILL DRAFT REQUEST TO PROVIDE FOR IMMEDIATE HOUSING FOR THE INMATES OF THE SOUTHERN NEVADA PRIVATE WOMEN'S FACILITY THROUGH A SOLE- SOURCE CONTRACT. MR. FETTIC SECONDED THE MOTION. Ms. Giunchigliani remarked: Unfortunately, sole source is the only choice that we have to provide emergency housing. I think the budget was inappropriately and inadequately funded in the first place regarding this area, and based on some false numbers....We have no choice but to deal with the beds. I think through sole source...we can get up and running far quicker than if we have to wait for public works. I do believe the sole-source method is the proper choice at this time. Mr. Spitler echoed Ms. Giunchigliani `s comments. He stated the DOP is in dire need of providing housing for prisoners, and he believes the sole-source method will be the most effective way of providing needed beds, and allows for the transition of the current women's facility to be easily converted to a men's facility. Senator O'Donnell indicated he also concurs with Ms. Giunchigliani's views. He remarked: I think we are looking at two different scenarios. We are looking at the fact that a 35 percent release rate is not attainable, and we really do not know what the release rate is going to be. We need to do what we need to do in terms of building facilities to house more prisoners. I think the common sense approach is that there are going to be more prisoners. How many of them, we do not know. We are also looking at additional data...the number of prisoners coming in the front door are more than expected. The release rate is one aspect of prison population. The commitment rate on the front end is also an aspect of prison cells, and that rate has increased over the last 4 months. It is hard to determine where we are going to be. If we looked at these budgets overall, we will be considering at capacity or overcapacity on every single prison that we have under the 35 percent release rate in the Governor's budget. I do not think that is attainable. I think we are realistically looking at an emergency measure. I think this sole source is a by-product of the reality that we need a prison by 1996. The only way I know to get a prison on-line is to contract with a contractor to build it. Whoever decides that...I do not think that should be decided in this body...that is the only way that a prison can come on-line that quickly. With that, I will support this [motion] but I think it is imperative that we do this as quickly as possible, because the prison cells are not going to be there shortly. Mr. Fettic commented he does not think the DOP should be required to operate their facilities under emergency conditions at all times. He opined, "That is a time bomb waiting to go off, and is another reason we have to hurry this along." THE MOTION CARRIED. (MR. ARBERRY WAS ABSENT FOR THE VOTE.) * * * * * SENATOR O'DONNELL MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D, AND TO ISSUE A BILL DRAFT REQUEST TO PROVIDE FOR IMMEDIATE HOUSING FOR THE INMATES OF THE SOUTHERN NEVADA PRIVATE WOMEN'S FACILITY THROUGH A SOLE- SOURCE CONTRACT. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Nevada Women's Correctional Center - Page 1629 Mr. Ghiggeri indicated the adjustments reflected in Exhibit D provide for the conversion of the NWCC on or about January, 1997. He stated it will cost approximately $7.6 million to convert the facility to an all male facility. He distributed information issued by the State Public Works Board concerning the conversion (Exhibit F). If the subcommittee desires to provide for the remodeling of the women's facility, Mr. Ghiggeri stated the proposal will be further reviewed by the Joint Subcommittee on Capital Improvements/Higher Education in their deliberations to finalize the CIP program for the 1995 - 1997 biennium. Mr. Marvel asked if the cottages located at the women's prison are currently being used. Mr. Bayer replied they are being used by the security squadron of the NSP for storage purposes, but they are not being used to house inmates since they are in very bad shape. Mr. Marvel remarked the cottages are in deplorable condition and asked if they have any usefulness at all. Mr. Daily stated the State Public Works Board recently compiled the information contained in Exhibit F after a review of all of the existing facilities located at the NWCC was made. He indicated the cottages were originally used to house women trustees, but have not been in use for the last 2 years. At a cost of approximately $54,000, the State Public Works Board can put the (six) cottages back into functional status and comply with all of the required codes. He suggested the cottages could once again be used to house trustees. Mr. Ghiggeri stated the Joint Subcommittee on Capital Improvements/Higher Education will review the estimate (Exhibit F) in the event the subcommittee decides to appropriate the funds to remodel the cottages. The DOP has indicated they will require $33,000 for additional equipment based upon the conversion of this facility to a female facility. Mr. Ghiggeri stated at the present time, Senate Bill (S.B.) 198 is in the Senate Committee on Finance, and if the subcommittee desires, these items can be reviewed for inclusion in S.B. 198. SENATE BILL 198: Makes appropriation to department of prisons for replacement of various equipment. Mr. Bayer remarked the DOP does not want to house inmates in the cottages. The cottages were built to house on-site staff but over the years the cottages were used for a variety of other things including housing women trustees. Given the fact there will be two medium security prisons located at the site of the NWCC, and the cottages are in a location that will be difficult to observe, he opined no male inmates should utilize them. Ms. Giunchigliani stated remodeling the cottages should be considered a long-term project that can be revisited at a future time. She reminded the subcommittee that revenue is important at this time and should be directed toward the reduction of some of the other major prison costs. MS. GIUNCHIGLIANI MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D. MR. MARVEL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * SENATOR O'DONNELL MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Stewart Conservation Camp - Page 1635 Pioche Conservation Camp - Page 1641 Indian Springs Conservation Camp/Boot Camp - Page 1645 Wells Conservation Camp - Page 1651 Humboldt Conservation Camp - Page 1655 Ely Conservation Camp - Page 1659 Jean Conservation Camp - Page 1663 Silver Springs Conservation Camp - Page 1667 Carlin Conservation Camp - Page 1671 Tonopah Conservation Camp - Page 1675 Mr. Ghiggeri explained the aforementioned budget accounts pertain to the Conservation Camp Program and the DOP costs for the operation of the camps. The proposed adjustments reflected in Exhibit D relate to the change in inmate populations, Mr. Ghiggeri said, and additional funding has been provided for the increase in the average population of both the Silver Springs and Jean Conservation Camps based upon the privatization of the women's facility. Mr. Ghiggeri stated decision unit E-425 of the Governor's Executive Budget recommends the expansion of the Boot Camp Program at Indian Springs by 36 beds, and would include the addition of a Correctional Sergeant, a Senior Correctional Officer, and two Correctional Officers. However, Mr. Ghiggeri said the proposed boot camp expansion is not included in the budget closing action sheets (Exhibit D) at the recommendation of the subcommittee. MR. MARVEL MOVED TO RECOMMEND CLOSING THE AFOREMENTIONED BUDGET ACCOUNTS FOR ALL OF THE CONSERVATION CAMPS IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D. MR. ARBERRY SECONDED THE MOTION. Mr. Bayer commented he has submitted a federal grant in an attempt to secure matching funds for the boot camp at Indian Springs. He asked the subcommittee to consider setting aside $160,000 in a contingency fund to be used in the event the matching funds are not available. Ms. Giunchigliani asked: By doing the conservation camps, the intent is still to make them pay for themselves and that if and when a camp potentially does not...and it no longer needs the beds that we may shift our resources if necessary. I am not advocating closing but we talked about making sure through NDF [Nevada Division of Forestry] and the DOP we were making these people pay for themselves and potentially if we needed to if we had a camp that was no longer generating the revenue...maybe moving your sick out and making one camp....Is that still part of the discussion or understanding that is out there? Senator Jacobsen stated he has statistics regarding the conservation camps for the period 1990 to 1994 indicating the amount of revenue derived by each during that time. He said most of the camps reached a high in 1992. He will provide copies of the statistical information to each of the subcommittee members at a later date, but indicated the amount of revenue the camps generate to the state will be drastically decreased if we reduce the number of inmates that are placed within them. Ms. Giunchigliani remarked even if the camps generate revenue or pay for themselves, it may still be necessary to shift resources when it becomes clear a camp is no longer paying for itself. Mr. Bayer said an oversight group has been started with NDF and the DOP to move towards common procedures and policies to acquire one vision of what is going on in the camps. Senator Jacobsen stated the conservation camp honor crews are an excellent resource to the state, and have provided invaluable service in the area of fire suppression and maintenance of the veteran cemeteries in the north and south. He has visited all of the conservation camps within the last year, and opined the camps are functional and well managed. Mr. Close stated he does not agree with some of the subcommittee members to exclude the boot camp expansion at the Indian Springs location. MR. CLOSE MOVED TO AMEND THE MOTION TO INCLUDE DECISION UNIT E-425 IN BUDGET ACCOUNT 101-3725. Senator Jacobsen wished to note for the record the aforementioned motion died for lack of a second. Mr. Marvel asked if some type of tracking mechanism can be implemented to determine the amount of revenue that is saved by the state for fire suppression activities performed by honor crews. Mr. Neill stated the DOP does not track this type of information, but suggested the Division of Forestry may have tracked suppression costs and should be able to identify the amount of savings generated by the use of inmate honor crews. Roy W. Trenoweth, State Forester Firewarden, Division of Forestry, State Department of Conservation and Natural Resources, said although the Division of Forestry has not actually tracked the amount of savings to the state by use of inmate honor crews, he estimates the savings to the state in 1994 amounted to approximately $3 million, which is an overall savings to the taxpayer. Mr. Ghiggeri called the subcommittee's attention to a request by the DOP for two additional staff positions at the JCC that will be needed because of the conversion of the camp to an all male facility. MR. MARVEL MOVED TO AMEND HIS MOTION TO INCLUDE THE ADDITION OF TWO STAFF POSITIONS FOR THE JEAN CONSERVATION CAMP. MR. ARBERRY CONCURRED WITH THE MOTION AS AMENDED. THE MOTION CARRIED. (MR. CLOSE VOTED NO.) * * * * * SENATOR O'DONNELL MOVED TO RECOMMEND CLOSING THE AFOREMENTIONED BUDGET ACCOUNTS FOR ALL OF THE CONSERVATION CAMPS IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT D, AND TO INCLUDE THE ADDITION OF TWO STAFF POSITIONS AT THE JEAN CONSERVATION CAMP. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Mr. Ghiggeri said there has been discussion regarding the placement of revenue into the IFC Contingency Fund for contingencies that may arise during the 1995 - 1997 biennium due to the housing of an increased number of inmates in the prison system. Mr. Ghiggeri called the subcommittee's attention to page 3 of Exhibit D that lists the cost to the state to house inmates out-of-state using a $45, $50,$55, and $60 rate. He stated a $60 daily rate, per inmate, will cost the state approximately $22,000 per year, and a $45 daily rate, per inmate, will cost approximately $16,400 per year to house inmates out-of-state. Mr. Ghiggeri indicated the closure actions taken today by the subcommittee has freed approximately 432 beds that can be utilized to house male inmates by the privatization of the women's facility. He pointed out, however, that it is unknown what the inmate population will be. Ms. Giunchigliani asked what the "Rainy Day" Fund is used for. Mr. Ghiggeri responded the Rainy Day Fund is to address a shortfall in revenues. The IFC Contingency Fund is provided to address funding shortfall in agency budgets that occur during the biennium due to unforeseen circumstances. Ms. Giunchigliani asked, "Statutorily, our Rainy Day Fund can only be used for revenue shortfalls?" Dan Miles, Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, replied the existing statute requires that a financial emergency be declared by the Governor, and agreed to by the Legislature, before revenue can be used from the Rainy Day Fund. Ms. Giunchigliani asked if this provision can be statutorily changed to deal with an emergency such as the shortage of beds in the prison system. She remarked: That is why we have the Rainy Day Fund. I do not want to take more out of the General Fund to set aside on a contingency basis. I would rather use that money for programs or for holes we have left in some of the other budgets. In my opinion, running out of beds qualifies as an emergency. If not, perhaps we need to look at a statutory change or clarification. Maybe the Senate has more history with something like this. Senator O'Donnell said the state has a responsibility that must be addressed, and funds must be set aside to maintain a safe and comfortable prison population in the state. He maintained it does not matter if the funds are taken from the Rainy Day Fund or from another source, because the issue of bed space is a critical one that must be addressed. He said, "If you think this problem may not occur, you are kidding yourself because it is going to occur, and we are going to need this expense." Ms. Giunchigliani commented the shortage of beds will occur because the budgets were not based on a realistic parole rate. She said if a huge fund is available it should be used whether it is in a Rainy Day Fund or in a Contingency Fund. Ms. Giunchigliani stated: We have got the revenue available that will not impact General Fund revenue, and if we must take 5 percent of the Rainy Day and place it in a Contingency Fund for potential prison space, it will not cut into what is currently out there for programs and budget closings. I think that is an appropriate use of those dollars...if we move it over to the IFC Contingency Fund. If we do not use it, we can move it back. I am asking what the mechanism is for that type of arrangement, or do we just let it sit in a Rainy Day fund but we have some kind of a closing that stipulates a certain percent can be used by IFC for the Contingency Fund? Mr. Miles pointed out there is approximately $18 million in the Rainy Day Fund at the present time. The Governor has recommended an additional $82 million be appropriated to increase the Rainy Fund to $100 million, but Mr. Miles said the bill containing this appropriation measure has not yet been acted upon. He stated since this appropriation has not yet been processed, he does not believe it matters if revenue is taken from the IFC Contingency Fund or from the Rainy Day Fund. Ms. Giunchigliani replied, "As long as it is not additional revenue from the General Fund. If the Rainy Day Fund was budgeted separately a percentage should be moved into the IFC Contingency Fund." Senator O'Donnell remarked, "The issue is a classic case of `if you want to pay me now or you want to pay me later.' It still has to be paid whether you take it out of the Rainy Day Fund or the IFC Contingency Fund." Ms. Giunchigliani maintained if prison space is needed, some of the revenue placed in the Rainy Day Fund should be transferred to the IFC Contingency Fund to be used. She remarked: This whole Rainy Day Fund...I want to get to $100 million...was never tied to anything in my opinion. Let us make sure we are directing towards the safety of the public which means that revenue could be appropriately used for the potential contingency for prisons. Mr. Spitler opined: The reality is that it is all General Fund money and I think I would agree with Ms. Giunchigliani that the target should not be just to round off to $100 million. I think what we are saying is we need our own Rainy Day Fund that will be overseen by the IFC because of what is going to happen with the explosive nature of the prison population. My thought would be that we not shoot for the $100 million, but take $8 million to set aside for the oversight of the IFC to distribute to the DOP in the event it is needed. As Senator O'Donnell has stated, we cannot base our prison population on a 35 percent parole rate, nor should we. What we need to do is set aside that in the event we have to take prisoners and place them out-of-state until we can get the women's facility up and running to release bed space with the conversion locally. I do not think we would have to change statutorily what that is. I just think we will have to realize we have a real problem here and we have to fund it. MR. SPITLER MOVED TO TRANSFER $8 MILLION FROM THE RAINY DAY FUND INTO THE IFC CONTINGENCY FUND TO BE USED FOR THE EMERGENCY OUT-OF-STATE PLACEMENT OF INMATES, SUBJECT TO DOCUMENTATION BY THE DOP AND APPROVAL OF THE IFC, THAT THE EMERGENCY THRESHOLD LEVEL HAS BEEN REACHED. MR. MARVEL SECONDED THE MOTION. Mr. Marvel stressed the DOP should be required to present a well documented request to the IFC before an emergency appropriation will be granted. Mr. Arberry is concerned that by setting aside $8 million from the Rainy Day Fund to be used by the DOP on an emergency basis, a precedent will be set and other agencies will come forward with similar "emergency" requests. Mr. Spitler replied, "No, it is not my intention to set this up as a precedent. What it is set up to do is handle the critical situation of incarceration and keep who needs to be incarcerated in the prison system." He further explained the $8 million should only be used for out-of-state placement on an emergency basis. Mr. Spitler also stipulated if the legislation regarding the Residential Confinement or Assessment and Lifeskills Programs is approved, the DOP should be allowed to approach the IFC with a well documented case they have reached the emergency threshold. Ms. Giunchigliani concurred with Mr. Spitler that the release of funds to the DOP will have to be based upon a well documented plan regarding the emergency use of funds. She reminded the subcommittee if the women's prison is operational prior to the next biennium, additional bed space will be available. Mr. Marvel commented the subcommittee has presented a well-defined plan that will allow for emergency funding to be appropriated in the event the prison population increases. THE MOTION CARRIED UNANIMOUSLY. * * * * * SENATOR O'DONNELL MOVED TO TRANSFER $8 MILLION FROM THE RAINY DAY FUND INTO THE IFC CONTINGENCY FUND TO BE USED FOR THE EMERGENCY OUT-OF-STATE PLACEMENT OF INMATES, SUBJECT TO DOCUMENTATION BY THE DOP AND APPROVAL OF THE IFC, THAT THE EMERGENCY THRESHOLD LEVEL HAS BEEN REACHED. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Mr. Arberry asked if the movement of inmates into the LCC will be moved up from the scheduled July 1, 1995 date. Mr. Bayer responded the funding for the positions will not become effective until July 1, 1995. The DOP is in the process of training staff for the LCC, and upon the receipt of equipment requested through a supplemental request, Mr. Bayer said the move will be phased in. He stated he is anxious to open this facility as quickly as possible. Forestry Honor Camps - Page 1943 Prior to highlighting the information contained on pages 3 - 5 of the budget closing action sheets (Exhibit G), Jeanne L. Botts, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, advised the subcommittee Exhibit G will require adjustment to coincide with the changes in inmate populations, and the number of worker inmates available in each camp. She began her testimony by referencing the major adjustments recommended to the budget account and distributed Exhibit H, a recapitulation of the conservation camp project reimbursements. She stated this data represents the billing information by region as of June 1, 1995. Ms. Botts called attention to item 5 of Exhibit G that asks if each Assistant (Conservation) Camp Supervisor should be assigned a work crew. The revised budget contemplates the Assistant Conservation Camp Supervisors will consistently take work crews out and that each crew will consist of 12 inmates, she said. When calculating the number of employees necessary to supervise the projected numbers of inmates, Ms. Botts stated the Budget Division assigned crews to the Assistant Camp Supervisors, as has been done historically, and filled each crew with 12 inmates. The Division of Forestry would prefer the Assistant Camp Supervisors not be expected to take crews out on daily work projects. Senator Jacobsen indicated it is important that the Assistant Camp Supervisor remain in the camp area to process paperwork, line up work projects, and handle emergency situations that may arise. Mr. Trenoweth stated the use of Assistant Camp Supervisors in a crew supervisor capacity is not practical and will result in even more serious accountability and internal control issues than currently exist. Mr. Trenoweth continued his testimony by reading from prepared testimony (Exhibit I). R. Ronan Thornhill, Forestry Staff Specialist, Conservation Camps, Division of Forestry, State Department of Conservation and Natural Resources, stated the division believes it is necessary to have a crew supervisor assigned to the camp to take work crews out, and that this position should be in addition to the Assistant Camp Supervisor who should remain on site. Ms. Botts pointed out Item 7 of Exhibit G asks what laws and policies should be used to dictate the type of inmate to be placed in conservation camps, and what revisions will be needed to existing laws and policies to fill the camps with working inmates and still ensure public safety. Ms. Giunchigliani remarked: The subcommittee discussed this issue with Mr. Bayer, but I do not know if there is anything in writing to reclassify...but I know they [DOP] are working on that. We might want to ask for a Letter of Intent that as soon as the DOP determines the classification of how to assign the inmates, the information can be reported back if that is a concern of the subcommittee. MS. GIUNCHIGLIANI MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS, CONTINUE TO REQUIRE THE ASSISTANT CAMP SUPERVISOR TO TAKE WORK CREWS, CONSISTING OF 12 INMATES, OUT ON DAILY WORK PROJECTS, AND THE ISSUANCE OF A LETTER OF INTENT TO DETERMINE THE ASSIGNMENT OF INMATES TO THE CONSERVATION CAMPS. MR. MARVEL SECONDED THE MOTION. Mr. Fettic stated he agrees with the Division of Forestry that the Assistant Camp Supervisor should not be required to take crews out on project assignments. He said he will vote against the aforementioned motion. Ms. Giunchigliani asserted the Division of Forestry does not require two individuals to make assignments and deal with the inmates. She suggested if the division does not want the Assistant Camp Supervisor to lead the crews, then the Camp Supervisor can do this work. She said, "You don't need two bosses to deal with that many people." Mike Nolan, Budget Analyst, Budget Division, Department of Administration, observed the transfer of in-state travel for the Conservation Camp Coordinator is listed as $635, but in the adjusted Base Budget when the expenses for the camp coordinator were transferred from budget account 101-4198 into 101-4195, the historical expense in 1994 was $1,001. He recommended since the role for this position has been expanded and the duties for that individual have increased, the subcommittee should consider making $1,001 available in the Forestry Honor Camps budget. Ms. Giunchigliani amended her motion as follows: MS. GUINCHIGLIANI MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS, CONTINUE TO REQUIRE THE ASSISTANT CAMP SUPERVISOR TO TAKE WORK CREWS, CONSISTING OF 12 INMATES, OUT ON DAILY WORK PROJECTS, THE ISSUANCE OF A LETTER OF INTENT TO DETERMINE THE ASSIGNMENT OF INMATES INTO THE FORESTRY HONOR CAMPS, AND INCREASE THE IN-STATE TRAVEL OF THE CONSERVATION CAMP COORDINATOR TO $1,001 FOR FISCAL YEAR 1995 - 1996 AND FISCAL YEAR 1996 - 1997. MR. MARVEL SECONDED THE MOTION. Mr. Close inquired regarding the costs associated with the Assistant Camp Supervisor positions. Mr. Nolan responded the cost for the biennium to add the Assistant Camp Supervisor position to the Forestry Honor Camps budget is approximately $992,420, plus an additional $75,840 to include the supervisory position for the JCC due to the subcommittee's recommendation that camp remain open. Mr. Nolan pointed out the total cost amounts to $1.06 million. Mr. Fettic interjected, "I did not know we were talking about $1 million." THE MOTION CARRIED UNANIMOUSLY. * * * * * Senator O'Donnell stated he is not in agreement with the motion made by the Assembly to close the budget for the Forestry Honor Camps. Senator Jacobsen echoed Senator O'Donnell `s remark. SENATOR O'DONNELL MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS REFLECTED IN EXHIBIT G, ALLOWING THE DIVISION OF FORESTRY THE FLEXIBILITY TO DETERMINE IF ADDITIONAL CREW SUPERVISORS SHOULD BE USED AT THE FORESTRY HONOR CAMPS. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Senator Jacobsen adjourned the meeting at 10:22 a.m. RESPECTFULLY SUBMITTED: Marion Entrekin, Committee Secretary APPROVED BY: Senator Lawrence E. Jacobsen, Chairman DATE: Assemblyman Larry L. Spitler, Chairman DATE: Assemblyman Thomas W. Fettic, Chairman DATE: Senate Committee on Finance Assembly Committee on Ways and Means Joint Subcommittee on Pub. Safety/Nat'l Res./Trans. June 6, 1995