Prisons Debate: A Numbers Game?
Quick, jot down the following numbers: 167,000… $1.2 billion… $3 million… 4%… 37%… 2.4. They're going to come in handy when lawmakers soon wrap themselves in a one of the most complicated and controversial areas of public policy: prisons.
The return of the Legislature next week will feature an intense debate on not just how to reduce prison overcrowding in response to the recent ruling by federal judges, but also on how to save cut prison spending as part of the state's budget crisis. A lot. And fast.
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Prison Health Care Almost Half Billion Over Budget
Adding more angst to easily the worst budget situation in California history, officials confirm that the federal court appointed prison receivership has spent almost $500 million more than budgeted in the fiscal year that ends on June 30.
The cost overruns in the operation overseen by receiver Clark Kelso have been the subject of Capitol rumor for months. But the high price tag was only confirmed over the last 24 hours, first by comments made during a budget conference committe hearing on Tuesday and later by Kelso himself.
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Judge Rejects Ending Prison Health Oversight
The federal judge who took control of California prison health care some three years ago rejected a request today to scrap the court-appointed receivership.
U.S. District Judge Thelton Henderson denied a petition from Governor Schwarzenegger and Attorney General Jerry Brown to replace the receivership with the more limited powers of a special master.
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Audit: $26.7 Million "Improperly" Spent By Prison Receiver
A new state audit concludes the original federally court appointed receiver overseeing health care in California prisons "improperly" approved $26.7 million in spending on information technology needs.
State Auditor Elaine Howle's new report raps the knuckles of the receivership program for not following proper proceduresl, though the knuckles rapped belong the guy who used to be prison health care receiver: Robert Sillen. Sillen was replaced in January 2008 by Clark Kelso, a law professor who's been called upon to fix a number of state government messes in recent years.
The audit (summary here, full report here) concludes that under Sillen's watch, the receivership operation spent $26.7 million on IT goods and services without following proper competitive bidding procedures. The auditor says that one of two processes could have been used: state government's competitive bidding process, or an "alternative" method for the receivership approved by U.S. District Judge Thelton Henderson, who created the receivership a few years back as part of a long-running lawsuit against health conditions in the prisons.
"Staff at various levels," says the audit, "had little, if any, understanding about the competitive bidding requirements imposed by the federal court."
The audit also says that "wok environment" in the receivership offices discouraged staffers from raising concerns about how the IT money was being spent.
In a press release, Kelso said he's taken steps to fix the problems created before his arrival, and to ensure the IT services in question are "appropriate and in the best interest of the state."
[update 10:39 a.m. -- Kelso told reporters in a conference call this morning that he's referred the matter to Attorney General Jerry Brown. Those could be interesting conversations, given Brown's ongoing attack against Kelso's $8 billion prison health care plan.]
Add $3.1 Billion to Budget Deficit?
There's a chance the budget hole just got deeper, if the courts side with the man tapped to resolve problems with health care in California's prisons.
Clark Kelso, the federal court appointed receiver for prison health care, decided today to pull the trigger on formal legal action to get $8 billion he says is needed to bring medical standards up to a constitutionally guaranteed level.
The action comes after legislative action stalled back in May on a bond package to pay for prison health care. Kelso's filing with the court asks for $6 billion to build new health care facilities, and another $2 billion to complete projects at existing facilities.
And as for the headline… that's a factoid mentioned by Kelso today designed to get the attention of lawmakers, who remain at loggerheads over a new budget. He estimates that if a court rules against the state in this new lawsuit, the costs in the current 2008-09 fiscal year would be $3.1 billion… potentially bringing the budget shortfall up to more than $18 billion.
For now, it seems, Governor Schwarzenegger is maintaining optimism. "The administration will continue to work cooperatively with the receiver and the Legislature to provide the necessary funding for the receiver's efforts," said gubernatorial spokesman Aaron McLear.
CHP, CalFire Exempt From Pay Cut
BUDGET DAY PLUS 35 — As various state agencies continue to decide which workers would, and would not, be exempt from Governor Schwarzenegger's executive order suspending all but minimum wages for their work in August, there's now word that two departments are completely off limits.
Late Monday night, the governor's office confirmed that no employees of either the California Highway Patrol or the California Department of Forestry and Fire Protection would have their paychecks cut back… assuming Schwarzenegger's order ends up going into effect (something that was hotly debated yesterday).
"Employees with critical public safety roles, including all of CalFIRE and CHP, are exempt from the governor's executive order," said gubernatorial spokesman Aaron McLear by email.
Still unclear, however, is how many employees of another public safety entity — the state Department of Corrections and Rehabilitation — would be exempt from a minimum wage-only paycheck. The issue of prison employees remains unresolved… in part, after the federal court-appointed receiver for prison health care, Clark Kelso, suggested almost 90% of the department's 66,000 employees should be exempt… due to the critical nature of their jobs.
Kelso's statement drew a quick response last week from Schwarzenegger's top lawyer, Andrea Hoch, who wrote to Kelso that such a determination is "beyond your authority."
Nonetheless, the "who is and who isn't exempt" issue across all state agencies is important… because it has a real impact on whether the governor's payroll actions can actually save the state the money his advisers said it would, money he says is needed to keep from running out of cash.
[UPDATE: For more information, see new posting on "Schwarzenegger v. Chiang?"]
Court Receiver Ups The Ante, Again
Henry Hill: "You're a pistol, you're really funny. You're really funny."
Tommy DeVito: "What do you mean I'm funny? You mean, let me understand this cause, ya know maybe it's me… but I'm funny how?
I mean funny like I'm a clown? I amuse you? I make you laugh?"
The new federal court receiver for prison health care, Clark Kelso, has a reputation for a calm and reasoned demeanor. And yet, I can't get Joe Pesci's tough guy character from Goodfellas out of my mind.
This morning, Kelso filed documents with U.S. District Judge Thelton Henderson again demonstrating his intentions to get the money he says is needed to bring California's prison health care up to constitutional standards.
Kelso's new filing adds Controller John Chiang to the state officers listed as defendants. The receiver also filed a request to begin a legal discovery process at Chiang's office to examine the state's bank accounts.
“The reason is simple," says Kelso's filing. "The State has declined to fund major capital projects the Receiver considers essential to fulfilling the charge given to him by this court. As a result, the Receiver may find it necessary to ask this court to order the Controller to draw warrants on the State Treasury to provide the Receiver with the necessary funds."
Today's action is just the latest ratcheting up of the pressure. Last month, Republicans in the state Senate refused to provide votes for a $7 billion bond proposal to improve prison health care.
Part of the problem, said Assembly GOP Leader Mike Villines, is the price tag. Villines, in comments to reporters on Wednesday, said the proposal is the equivalent of giving a mid-size city lavish health benefits.
"We have someone [Kelso] saying they need $7 billion for 180,000 population," Villines said. "It seems astronomical, and it doesn't seem well justified."
Goodfella Tommy DeVito wouldn't like that answer. And it seems doubtful Kelso or the federal courts will, either.
UPDATE [3:30pm] In a written statement, Controller Chiang paints a gloomy picture if the courts simply come in and pluck the money needed from the state's bank account: "If the Court does order the State to make payments as requested by the Receiver, we would be forced to tap transportation, victim’s compensation, mental health and other special funds earmarked by voters for specific purposes. Such action likely would invite protracted and costly litigation at taxpayer expense."
About the Blogger
John Myers is Sacramento Bureau Chief for KQED's The California Report, heard on public radio stations around the state. More about John...
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