Report: Debt Fuels Recidivism

NEW YORK — Offenders faced with insurmountable debts, multiple creditors and poor income potential are more likely to return to a life of crime rather than legitimate employment, according to a report by the Council of State Governments’ Justice Center.

With few assets, poor educational levels and criminal records, offenders released from prison with debts of up to $25,000 have little hope of earning sufficient income through legitimate employment to escape indebtedness, according to the report that was commissioned by the Bureau of Justice Statistics.

“States must make some important policy changes that facilitate payment of child support, prioritize victim restitution, coordinate collections among many different agencies, and support people leaving prison and jail in ways that advance long-term payment of these debts,” says state Senator Alan Cropsey, R-Michigan, who served as a member of the study’s advisory board.

The justice system burdens prisoners with fines, fees and charges that can amount to more than $10,000, according to the report. Many jurisdictions charge fees for court and probation services, victim restitution, detention accommodation, DNA and drug testing, and mandatory substance and behavioral treatment programs.

A significant portion of offender debt is associated with the accumulation of child-support obligations, according to the report. Many jurisdictions do not suspend a prisoner’s obligation to make child-support payments while incarcerated.

With multiple agencies and parties often seeking debt repayment simultaneously, offenders can face the prospect of surrendering 100 percent of their income or salary after release. Yet, states have failed, or have been unable, to collect an average of almost $180 million in court costs, fines, fees and victim restitution.

“No single government agency can tell you how much these individuals owe in total,” says state Assemblywoman Sheila Leslie, D-Nevada, who served on the study’s advisory board.

The justice center report recommends states establish a single agency to oversee offender indebtedness and to coordinate and prioritize offender debt repayment and financial obligations.

“Criminal justice agencies often work at cross purposes, which can leave children and victims at the end of the payment queue,” Leslie says.

The report recommends placing a payment cap of 20 percent of an offender’s income on all state fines and fees.

In addition, states should consider modifying or suspending child-support orders during the offender’s incarceration, according to the report. Child-support payments could then be prioritized after the offender’s release.

Offenders should be offered the opportunity to work off some of their debts through community service, while enhanced programming, such as job placement and training, should be implemented to increase the earning potential of offenders, according to the report.

States should develop a range of incentives, such as fee and fine waivers or certificates of good conduct, designed to help willing individuals to meet their financial obligations, while a system of sanctions, including increased supervision, could be used to compel uncooperative individuals under supervision to make payments.

A system of coordinated offender debt monitoring, management and collection could increase rates of repayment to all stakeholders, from victims to families to criminal justice agencies, while ensuring offenders are not driven to become re-offenders because of insurmountable financial obligations and debt, officials say.