Legislative Analyst's Office Analysis of the 2001-02 Budget Bill

Department of the Youth Authority (5460)

The Department of the Youth Authority (CYA) operates 11 institutions (including two reception centers) and six conservation camps throughout the state. As of December 31, 2000, the system housed 7,100 wards. The budget includes requests totaling $22.6 million from the General Fund for capital improvements at existing state institutions. This represents a decrease of $2.4 million from the current year. The estimated future cost to complete these projects is $10.4 million. The budget includes the following proposals:

Previously Funded Projects:

• $6.9 million for design and construction of a new kitchen at the Fred C. Nelles Youth Correctional Facility.
• $4.1 million for design and construction of a new Correctional Treatment Center at the Northern California Youth Correctional Center.
• $3.2 million for construction to convert 50 beds to a new Specialized Counseling Program at the Southern Youth Correctional Reception Center and Clinic.
• $1.3 million for construction to install air conditioning in education classrooms at the El Paso de Robles Youth Correctional Facility.
• $1.2 million for construction to install personal security alarms at the N.A. Chaderjian Youth Correctional Facility.

New Proposals:

• $4.1 million for minor capital outlay projects (costs of less than $400,000 per project).
• $765,000 for design of a new kitchen at the Preston Youth Correctional Facility.
• $682,000 for design of a new mental health treatment facility at the N.A. Chaderjian Youth Correctional Facility.
• $250,000 for planning and studies.
• $124,000 for design to renovate an existing kitchen at the Northern California Youth Correctional Center.

We recommend the Legislature approve $4.1 million for minor capital outlay projects. A discussion of the balance of the request and our recommendations follow.

Modify Provisional Language

We recommend the Legislature delete the phrase "upon approval of the Department of Finance" under Provision 1 because such language has prevented the Youth Authority from producing adequate project cost and scope information in a timely manner. (Modify Provision 1 of Item 5460-301-0001.)

The Governor's budget includes $250,000 for development of project cost and scope information. Proposed budget bill language specifies that the funds are available "to develop design and cost information for new projects for which funds have not been previously appropriated, but for which . . . funds are expected to be included in the Governor's budget for 2002-03 or 2003-04." The language specifies that these funds are available only upon approval of the Department of Finance (DOF).

These funds are intended to help the department define proposed projects and develop cost estimates early in a fiscal year. That, in turn, gives both the administration and the Legislature better information to evaluate, during the latter part of the fiscal year, capital outlay projects which may be included in future budgets.

For many of the projects included in the department's budget, however, insufficient project scope and cost information is available. A significant factor contributing to the lack of information is that DOF does not approve the use of the development funds until deciding to include the projects in the Governor's budget—that is, almost halfway through the fiscal year. As a result, necessary project information is not available for timely review during the budget process. In order to address this problem, we recommend that the funds be available directly to the department to develop the necessary information on their capital outlay projects. This would allow the department to start work early in the budget year and appropriate scope and cost information would be available in a more timely manner to the administration and the Legislature.

To assure the department receives the funds at the beginning of the budget year, we recommend the Legislature delete the phrase "upon approval of the DOF" under Provision 1 of Item 5460-301-0001.

Projects Recommended for Approval Contingent on Completion of Preliminary Plans

We recommend the Legislature approve $9.4 million of funding requests for construction of three projects contingent on receipt and review of completed preliminary plans consistent with prior legislative approval.

The Governor's budget includes funding requests for working drawings and/or construction of three continuing projects that total $9.4 million for which preliminary plans and/or working drawings were funded in prior years (see Figure 1). The amounts included in the budget are consistent with the inflation-adjusted future costs associated with the prior appropriations and, pending timely completion of prior phases, should proceed. Therefore, we recommend the Legislature approve the requested amounts contingent on receipt and review of completed preliminary plans and cost estimates consistent with prior legislative approval. As discussed below, we raise an additional issue concerning the new kitchen project at the Nelles facility.

Fred C. Nelles Youth Correctional Facility—New Kitchen. The budget includes $6.9 million for construction of a new central kitchen and dining facility at the Fred C. Nelles Youth Correctional Facility in Whittier. The 2000-01 Budget Act included $374,000 for preliminary plans, and at that time preliminary plans were scheduled to be completed by April 2001. The inflation-adjusted future cost recognized by the Legislature for working drawings and construction was $6.9 million. The Legislature directed the department to design the kitchen to serve the existing population of the institution based on serving three shifts per meal. The department was directed to develop a food service program for the project during preliminary plans which would be accommodated within the 19,600 square foot facility proposed and would be completed within the recognized future cost. Preliminary plans, which are scheduled to be complete in May 2001, should be completed in order to validate the project cost and scope of work before the Legislature authorizes additional project funds.

Delete Funding for Various Projects at Institutions Statewide

We recommend the Legislature delete $8.9 million from the General Fund requested for five projects at four institutions because inadequate program and planning information is available. (Delete a total of $8.9 million under Items 5460-301-0001 [2], [3], [5], [6], and [9].)

The Governor's budget includes $8.9 million for various phases of five projects at four institutions as shown in Figure 2. Insufficient program planning information has been provided for all of the projects. In two cases, preliminary plans should be completed before additional funds are authorized. The requests and our concerns with each are discussed below.

Preston Youth Correctional Facility—New Kitchen. The budget includes $765,000 for preliminary plans and working drawings to construct a new 22,000 square foot kitchen at the Preston Youth Correctional Facility in Ione. The estimated future cost to construct the project is $7.5 million. This construction cost is based on information prepared in 1998, and at that time no food service program had been developed. As mentioned above, this same issue was raised last year when the department requested funds for the new kitchen at the Fred C. Nelles Youth Correctional Facility. Development of a kitchen program is critical in order to ensure the project meets the food preparation needs of the institution. The department has not prepared a food service program for this project, and consequently it is not clear if the proposal will address the institution's needs. The department should develop a project plan defining the needs and overall program before the Legislature authorizes any funds to design or construct a new kitchen. A future proposal based on the appropriate needs assessment and food service program may warrant legislative consideration. At this time, however, we recommend the Legislature delete $765,000 under Item 5460-301-0001 (2).

Northern California Youth Correctional Center—Correctional Treatment Center. The budget includes $4.1 million for working drawings and construction to renovate 11,600 square feet of the existing infirmary to provide a 14 bed licensed Correctional Treatment Center at the Northern California Youth Correctional Center in Stockton. The 2000-01 Budget Act included $219,000 for preliminary plans for this project. At that time, the plans were scheduled to be complete by May 2001. According to the Department of General Services, the preliminary plans will not be completed until August 2001, three months behind schedule. In last year's Analysis, we raised an issue regarding this project schedule and construction cost. We recommended that the Legislature delete the requested working drawing funds (which it did), and noted that funding for working drawings and construction could be considered in 2001-02 if preliminary plans were completed on schedule and within the estimated project cost. Now, the project has been delayed three months, and the Legislature has no more information regarding the cost or scope of work for the project than it had last year. Preliminary plans and associated cost estimates should be available for legislative review to validate the project scope and cost before the Legislature appropriates any additional funds. Consequently, we recommend the Legislature delete $4,088,000 under Item 5460-301-0001 (3).

N. A. Chaderjian Youth Correctional Facility—Construct 50 Bed Specialized Counseling Program. The budget includes $682,000 for preliminary plans and working drawings ($234,000) to renovate an existing living unit to accommodate a new 50 bed Specialized Counseling Program (SCP) and to purchase and install temporary facilities ($448,000). The estimated future cost of the project is $2.2 million for construction.

The department offers a range of mental health services to wards. The most severely affected wards receive clinical services through Correctional Treatment Centers until their condition stabilizes. Wards are then placed in an Intensive Treatment Program (ITP) until their condition improves and they can be moved to an SCP. From the SCP, the wards return to the general population in the institution. This proposal will construct (1) a total of 7,189 square feet of program space for the SCP program, (2) a secured corridor with observation cameras, and (3) various site improvements including paving and landscaping.

The department indicates that the temporary (modular) facilities will be periodically relocated over the next six fiscal years as the department constructs new facilities to address its long-term medical program needs.

According to the department, this is part of a multiyear project that will ultimately develop 500 mental health treatment beds throughout the Youth Authority. The Legislature, however, has no information on the overall need for these types of facilities, where the facilities will be located, the department's overall implementation plan, or the estimated construction and ongoing operating costs. This overall information should be available to the Legislature instead of the administration continuing to request projects in a piece-meal fashion and without the context of the entire program and associated costs. Consequently, we recommend deletion of $682,000 under Item 5460-301-0001 (5) until such information is available to the Legislature.

Southern Youth Correctional Reception Center and Clinic—SCP. The budget includes $3.2 million for construction to alter an existing building for 50 SCP beds at the Southern Youth Correctional Reception Center and Clinic in Norwalk. The project is to convert the 50 bed Marshall Living Unit, currently used for the ITP. The proposal is to "harden" the living units for the SCP program. The 2000-01 Budget Act included $368,000 for preliminary plans and working drawings for this project. While this project has received prior legislative approval, as noted above the department has not provided an implementation plan for mental health service delivery which addresses facility and program needs. In addition, preliminary plans are not scheduled to be complete until June 2001, and working drawings will not be complete until January 2002. Thus, the Legislature has no more information regarding the cost or scope of work for the project than it had last year. Preliminary plans should be completed to validate the project cost before the Legislature authorizes additional construction funds. Consequently, we recommend the Legislature delete $3.3 million under Item 5460-301-0001 (9).

Additional Information Needed

We withhold recommendation on $124,000 for preliminary plans to renovate the kitchen at the Northern California Youth Correctional Center pending receipt of information to justify (1) the cost of the project and (2) the need for additional freezer capacity.

The Governor's budget includes $124,000 for preliminary plans and working drawings to renovate the existing kitchen at the Northern California Youth Correctional Center. The estimated future cost for the project is $714,000. The project will (1) replace the existing concrete floor and (2) replace three existing blast chillers with five new units.

The blast chillers were installed in 1990 and are used to refrigerate prepared food that will be served at a future meal. According to the department, the units were improperly installed because the existing floor was not designed, nor adequately prepared, to accommodate the moisture and temperatures generated by the blast chillers. While it is apparent that the institution has a problem with the current units, the department has provided little information regarding the cost of the proposed project, why the units were not installed properly, or why this should not be funded on a priority basis using the department's special repair funds. Furthermore, it is unclear why additional food processing capacity is required at the institution. Pending receipt of information addressing these issues, we withhold recommendation of $124,000 under Item 5460-301-0001 (6).