No End in Sight for Soaring State Prison Budgets
WASHINGTON — Corrections spending rose to $35.6 billion nationally in 2006, an increase of 10 percent over 2005 levels, according to an annual report by the National Conference of State Legislatures.
State spending on corrections increased primarily because of an increase in inmate populations, according to the NCSL’s “State Funding for Corrections” report. Escalating inmate healthcare costs and increasing personnel expenses in overcrowded facilities were also cited by states as the principal factors driving expenditures.
Although state appropriations for education and healthcare outstrip spending on prisons, corrections represents the fastest growing sector, according to the NCSL.
The most significant spending increases from 2005 to 2006 were seen in Oregon (33.2 percent), California (24.6 percent), West Virginia (18.9 percent), Arkansas (18.6 percent), Nevada (17.7 percent) and Montana (16.7 percent), according to the report.
The increases in Oregon were due to growth in the state’s inmate population and the loss of federal funding, according to the report. The need to expand prison capacity is predicted to continue as long as mandatory minimum sentences for serious crimes are in place.
In California, much of the increase for 2006 is attributable to the consolidation of the state agencies the oversee corrections and the implementation of programs to reduce recidivism.
The increased expenditures in Arkansas were primarily driven by increasing inmate healthcare costs, additions to overall bed capacity and reimbursements paid to counties for housing state prisoners, according to the report. In addition, the state began a two-phased investment to expand community corrections and provide additional probation officers and specialized drug courts.
In Nevada, increased spending was attributed to a sharp increase in the number of inmates. As Nevada’s own prison population grew, overcrowding forced the state to return inmates it had contracted to house for other states, which meant lost revenue for the prison system, according to the report.
Idaho attributed spending increases to turnover among correctional officers and state efforts to improve staff recruitment and retention through increased salaries, overtime and benefit packages.
Staff retention and recruitment has become an increasingly expensive problem for corrections officials nationwide as states are pressured into increasing starting salaries, offering higher-than-average raises and augmenting overtime hours and rates.
Four states saw declines in general fund appropriations for corrections, which were attributed to reductions in personnel expenses and in the cost of utilities and materials, according to the report. Mississippi reported the greatest decline in spending for 2006, down 4.6 percent from 2005 levels. Corrections spending also declined in Indiana (2.9 percent), Illinois (2.1 percent) and North Dakota (0.9 percent).
The factors that drove corrections spending at the state level are expected to continue pushing expenditures in the same direction for the next several years, according to the report. Growing inmate populations and escalating inmate healthcare costs are identified as the two dominant driving forces in the United States .
Nationally, legislatures have budgeted $37.6 billion for fiscal year 2007, which represents an increase of 5.7 percent over 2006 levels. However, based on mid-year expenditure statements, states are set to spend more than what they initially budgeted at the aggregate level, according to the report. As of February, 16 states reported that corrections spending was exceeding appropriated levels.
Seven states have budgeted corrections spending to grow by more than 10 percent for fiscal year 2007. Four of these states — Arizona, California, Idaho and Minnesota — also experienced double-digit increases in 2006. The largest spending increases were projected by Wyoming (20.8 percent), Minnesota (15.3 percent) and Arizona (14 percent).
In the face of rising prison populations and escalating correctional costs, states are exploring alternatives to the expansion of prison system capacity embraced by states such as California .
Some states, such as Kansas, are pursuing rehabilitation programs to reduce recidivism rates. Others, including Nevada, are considering an overhaul of sentencing and parole guidelines to reduce incarceration rates.