The Alaska Department of Corrections announced Thursday it is raising the rate the Municipality of Anchorage pays to house inmates here by nearly $1 million due to legislative inaction on a fiscal plan.
The municipality currently pays a fee of $2 million annually to house offenders in state corrections facilities, a flat rate left unchanged since 1999, according to DOC. The change increases the fee to $2.9 million and goes into effect on Oct. 1.
"Because the legislature did not pass a fiscal plan, the department had to implement a fee increase in order to minimize staffing cuts and maintain safety," the Department of Corrections said in a release.
DOC said it has the right to change the housing fee under the current housing agreement with the municipality. If it had increased the fee to match inflation over the past 16 years, the municipality would have paid about $7.8 million more over the same time period.
In the agreement, DOC can raise the rate based on inflation. It's not clear why that never happened, said corrections spokesman Corey Allen-Young.
City spokesman Myer Hutchinson said the rate increase is "a direct cost shift of approximately $1 million to the municipality and Anchorage taxpayers."
"The mayor is thoroughly reviewing the municipality's support to the state for law enforcement and corrections operations, paying particular attention to the cost of pursuing and apprehending halfway house escapees," Hutchinson said.
The Department of Corrections does not charge the municipality based on the number of inmate beds being used, Allen-Young said. Even with the rate increase, the department is not covering all of its expenses, he said.
"There are a lot of costs per person including food, medical care, safety measures, staffing … We're trying to be fair. The issue was looked at extensively, and the consensus was that the municipality can pay some of the costs, especially if the majority of people who come into (Anchorage Correctional Complex) are from the municipality," Allen-Young said.