COMMITTEE ON BUDGET AND APPROPRIATIONS

MINUTES

NOVEMBER 14, 1996

PRESENT:

COMMITTEE MEMBERS: Wishnie, Darcy, Delfino, LaMotte, Abinanti

OTHERS: C.E.’s Office: Gina Angiulo, Jamie Hastings; BKS: Doreen Muentener; DSS: Commissioner Glass, Mario Cartlaro, John Grexa, Linda Samuels; Dept. of Correction: Commissioner Stancari, Luke Smith, Jane Black, Bob Maccarone; Budget: Joe Phelan, Leslie Bennett; LWVW: Harriet Goldberg, Esther Shay, Anne Nelson; CBAC: George Hosey, Barbara Strauss; BOL: Legislator Mosiello, Legislator Carsky, George Gretsas, Robert Boland, Glenn Guzi, Tina Seckerson

Co-Chair Wishnie called the meeting to order at 9:35 a.m.

1997 Proposed Budget - Departmental Discussions:

Department of Correction:

Mr. Wishnie stated that according to the County Executive all unfilled vacant positions will not be filled. Twenty-six vacant positions from the Department of Correction will be eliminated. Mr. Wishnie asked what kind of concern this presents for the department as indications show that the prison population will be growing.

Commissioner Stancari explained that there are 26 positions that were funded in 1992 as a result of housing federal prisoners as a revenue producing source. We have a contract with the U.S. Marshall Service where we house federal prisoners at a per diem rate. He stated that it has become a lucrative operation for the department and they aggressively go after that business. For several years those positions have been unfilled and those posts are being covered on overtime. The Commissioner stated that he made the decision not to fill those positions because as lucrative as the federal contract is, it could end at any time. If the contract ended tomorrow, and we hired an additional 26 people to watch those prisoners we would in effect either have to eat those 26 positions at the tune of about $1.2 million or lay off 26 people.

Mr. Stancari stated that it is his belief that it is a better scenario, being that it is revenue producing, to cover those posts on overtime and not hire the positions. He probably wouldn’t have filled the additional positions anyway.

Mr. Wishnie inquired as to any other vacant positions in the department. The Commissioner responded that there are 13 additional vacancies - 8 unfunded - 5 funded. He stated that he does not want to give these positions up because they give him a little leeway should the population go up to consider filling those positions.

Mr. Darcy requested a breakdown of the 8 unfunded positions. The Commissioner stated that 1 is civilian; 1 administrative; 2-3 supervisory; with the bulk being correction officers.

 

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Mr. Boland asked about the County Executive’s statement that all unfilled vacancies will remain unfunded. Mr. Phelan explained that in many instances the funded positions have been authorized for hire. He’s considering them between now and the end of the year to be filled, so therefore at the end of the year, assuming the 5 are filled, there will only be 8 positions in the budget for 1997 and all of those will be unfilled.

Mr. Mosiello asked how and if the loss of 21 correction officers in the pen will impact security of the facility and/or people. The Commissioner stated that security will not be affected because these positions have been unfilled for years and if there is ever a question of security the slots are filled with overtime.

Mr. Mosiello questioned the federal prison population. The Commissioner stated that it has been as high as 200; they projected 60 in the budget and are currently operating with approximately 95 per day.

Mr. Mosiello asked if there is a problem filling overtime. The Commissioner explained that overtime is voluntary and the correction officers welcome the opportunity.

Mr. Wishnie asked for a clarification of the overtime numbers stating that in 1995 $5.8 was expended for overtime, projected for year end 1996 is almost $6 million and yet we’re suggesting here that losing all these positions we’re only going to expend $4.7 million in overtime. He stated that it seems to be an overly optimistic projection. The Commissioner stated that the 26 positions will have no impact on overtime because they have not been filled for several years so they are not going to produce any additional overtime. Last year we sued the state to recover funds for housing state prisoners for an inordinate amount of time in the County Jail. We won that suit and we were awarded a monetary settlement as well as an order by Judge Silverman that the state must get those prisoners out on a timely basis. He stated that there were many months during 1996 where we had close to 100 state prisoners. All of those state prisoners had to be funded through the use of

overtime which is one reason why the overtime is high during the year 1996. They hope that condition does not occur again in 1997, however, if it does as it did in 1996, while we had to pay more overtime we were reimbursed by the state at an additional rate. The Commissioner stated that it was more than a wash -- it actually became a revenue source. Additionally the Commissioner explained, we had many more federal prisoners than projected. The Commissioner explained that all of those posts incurred additional overtime at a rate of 50 cents per dollar. For every 50 cents spent they made one dollar. While overtime went up the revenues went up proportionately to offset it and give them a surplus. He pointed out that the department actively and aggressively seeks out prisoners from the U.S. Marshall Service.

Mr. Darcy asked for an update on the EMSA contract. In 1996 food and medical services were privatized. The Commissioner stated that the food service is working without problems; the quality and quantity are excellent. He explained that this has been a transition period into privatization for the Department of Correction during which time things did not always go smoothly. There were some problems in start up with EMSA, there have been a number of reviews of EMSA’s operation pointing out some deficiencies and each and every deficiency that was pointed to EMSA has been corrected. He stated that EMSA has worked well with the department and has been very responsive to the needs of the County. Mr. Darcy asked about accreditation review. The Commissioner stated that the first inspection will be in the beginning of December and they do not foresee any problems in that area.

 

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Commissioner Stancari stated that a large portion of the department’s savings over the last few years is due to privatization.

Mr. Boland questioned the difference between the projected amount for contractual services ($7,600,000) and the appropriated amount (9,996,904) for 1996. The Commissioner explained that it was related to the privatization of food and medical services for the department. Transition money was put in for the 1st quarter of 1996 to cover any unforeseen problems. According to the Commissioner, fortunately, the privation was successful and the transition money was not used.

Mr. Boland questioned why there was no reduction in the 207C payments. Mr. Stancari stated that 207C has become a nightmare. Recent IRS rulings have made staying out on 207C very attractive because their disability pay is exempt from federal and social security taxes. An officer out on 207C reaps a 30% increase in his pay making it very difficult to get them back on full time duty.

Mr. Boland questioned the increase of $200,000 in the Annual Regular account. Mr. Phelan responded that the increase is due to projected salary increments (step increases).

Mr. Boland asked about the increase of $300,000 in data processing in account 5260. Mr. Phelan stated that when EDP evaluated the services they provide to the Department of Correction their dollar amount was higher than what the department had at the time.

Mr. Wishnie stated his concern with regard to the condition of the pen which was built in 1916. Mrs. LaMotte stated that she would like to see a breakdown of the bonding for the pen and asked what the cost of maintaining the pen is. The Commissioner stated that he did not have a dollar amount with regard to maintaining the building but stated that it is an old building and reminded the Committee that it is housed with people who don’t want to be there. He stated that DPW has one or two full time plumbers assigned there as well as an electrician. Walls and windows are in constant need of repair/replacement.

The issue of data processing charges was discussed. Mr. Phelan stated that they are not changing the billing system for 1997 as it would make things more confusing and ISSC has its own ideas so it doesn’t make sense to change the billing system now and possibly change it again therefore the charge back method for 1997 will be the same as in 1996.

Mr. Wishnie asked for the current population which Mr. Stancari stated is 1,390.

Mr. Hosey asked if IS is privatized what percentage of the department’s data processing functions will be outsourced and what percentage will be retained in-house. The Commissioner stated that IS currently handles all of the department’s data processing functions, therefore if it is privatized all of it will be outsourced.

 

 

Co-Chair Wishnie called for a 5 minutes recess at 10:10 a.m.

Co-Chair Wishnie called the meeting back to order at 10:15 a.m.

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DEPARTMENT OF SOCIAL SERVICES:

Mr. Wishnie inquired as to why the County’s Managed Care Program had more than 30% of recipients auto assigned when other states like New Jersey have a lower auto assigned rate. he wondered if the department was doing a sufficient job in educating recipients about their options. Commissioner Glass responded that the 30% figure was skewed by the fact that when the County began its mandatory Managed Care Program 1300 individuals were already in the program. In reality, the Department’s auto assignment rate is about 23% of all recipients. She further reported that the Managed Care Program has 6 staff members assigned, one Assistant Commissioner, 2 nurses and 3 clerks. They have bilingual staff and an 800 number to respond to questions on a 24 hour basis.

Mr. Boland questioned why the Managed Care account increased. The Commissioner explained that the 14 positions assigned under the program had not been included in the 1996 budget in the event the state failed to authorize the program. These lines have now been included resulting in the dramatic increase in that account.

Mr. Darcy inquired as to why nursing home expenses were increasing. The Commissioner responded that a local nursing home expanded adding 120 new beds. The senior citizen population is the fastest growing in this County. The need for the beds existed and they were filled. The Department has no alternative, according to the Commissioner, but to fund their portion of the costs for Medicaid eligible recipients for nursing home, hospital, pharmaceutical and home health care services.

Mr. Abinanti inquired as to why the Department’s costs went up in spite of the mandatory Managed Care program. Commissioner Glass explained that mandatory Managed Care resulted in a decrease in medical costs for the ADC and HR populations. However, the Department has no control over the expenses of medical assistance and SSI recipients. If someone is eligible, by law the Department must pay its share of expenses. Increases in these populations have more than offset the savings brought about through Managed Care.

Mr. Abinanti questioned how the Department managed to save $9 million in the Managed Care Program. Commissioner Glass responded that when the 1996 budget was created in the Fall of 1995, responses to the RFP for the Managed Care Program had not been received. The program ended up costing $!0 per client less than anticipated in the 1996 budget. Mr. Abinanti suggested that this was known by the Administration during budget negotiations and they should have informed the BOL.

Mr. Wishnie asked if the Department would be able to function effectively in 1997 with the elimination of 20 vacant lines. The Commissioner explained that throughout any given year additional vacancies are created by people leaving, retiring, taking other jobs, etc. This factor should provide the sufficient flexibility to keep the department functioning efficiently.

Mr. Darcy asked why day care funding had not been increased by the Department. Ms. Glass stated that there is no need for additional slots. According to the Commissioner, to her knowledge, there is no waiting list for day care in the County. She further reported that the Governor has proposed allocating additional day care funding as part of his Welfare reform measures.

 

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Mr. Abinanti stated that the reason there is no waiting list for day care is because the Department decentralized the registration process, leaving it with the individual providers. The Commissioners stated that she was unaware of this and suggested that anyone who had different information should contact her to demonstrate the existence of a need for additional slots. The Committee said that if the need existed, it would be inclined to add monies.

Mr. Hosey asked what percentage of the Department’s EDP function would stay in-house and what percentage would be outsourced and would there be any diminution of staff with outsourcing. Ms. Glass explained that 20% would stay in-house, primarily that which deals with the state’s Welfare Management System. The remainder would be outsourced with the ISSC contract, but there would be no loss of positions as a direct result.

 

 

 

There being no further items for discussion, on motion of Legislator LaMotte, seconded by Legislator Abinanti, the meeting was adjourned at 1:00 p.m.