States wrangle with corrections budgets: criminal justice budgets challenge states as costs and inmate populations increase.

Prisons are overcrowded, understaffed and aging. Add to that the rising costs of health care for prisoners, and it's no wonder that states are spending more and more on corrections.

California's 15.8 percent increase is way above average for FY 2004 to FY 2005, stemming from a new emphasis on segregating high risk prisoners, medical transportation costs and reforms to the probation process. And it could be worse. One-time federal fiscal assistance grants lowered its FY 2004 figures.

The average increase in corrections spending is 4.9 percent, but in some states, like California, it's much higher. Wyoming's increase, for example, is 13 percent, Maine and North Dakota have jumped more than 11 percent. Increases in Vermont and Minnesota are 10 percent.

States held 1.3 million inmates at the end of 2003, a 1.6 percent jump from 2002, according to the most recent Bureau of Justice statistics. For the past 20 years, the average annual growth rate is much higher--2.9 percent. Nationally, in 2003, the incarceration rate was 430 prisoners per 100,000 residents.

HEALTH CARE COSTS JUMP

Corrections ranks fourth in total allocations behind K-12 education, Medicaid and higher education. Corrections budgets in FY 200S total $31.4 billion--6 percent of general fund spending, compared with 5.3 percent 10 years ago.

Increases are being driven by health care costs--more disease, mental illness, substance abuse and an aging inmate population. Inmates tend to have higher infection rates for HIV/AIDS, tuberculosis and hepatitis C than the general population. Providing health care to its 164,000 inmates is the fastest growing expense in California's adult correctional system.

"California's prison population is graying like the prison walls," says Senator Gloria Romero. "Health care needs multiply as inmates grow older and develop more chronic illnesses. It's the biggest price tag in the staggering $5.6 billion corrections budget--almost 20 percent."

Arkansas is trying to keep health care costs down. Recently it imposed a $3 co-pay on inmates seeking health treatment in an attempt to control the number of clinic visits by inmates. "Inmate health care costs," says Senator Dave Bisbee, "are rising faster than any other part of the corrections budget but that mirrors the increases in other health related programs in our budget."

Pennsylvania's corrections department is attempting to save money by bidding out medical, mental health and pharmacy services. It has also consolidated four infirmaries at prison facilities that are close to each other.

Michigan moved to a managed care arrangement for specialty and hospital services and uses drug formularies and generic medicines whenever possible.

CONTROLLING OTHER EXPENSES

Building new prisons is another huge cost. But some states are exploring other options. Colorado, for example, is placing 11 percent of the inmate population in more affordable community corrections programs. The move saved the state $1.9 million in FY 2005.

Idaho is keeping some offenders out of state prisons through the use of drug courts and mental health courts. "In addition to saving on the cost of incarceration," says Senator Denton Darrington, "these alternates give people the opportunity to turn their lives around."

Almost half of released prisoners are convicted of a new crime within three years. The Maryland legislature is trying to reduce the recidivism rate by rehabilitating offenders in custody. Pilot programs at two prison sites, one male and one female, addresses inmates' substance abuse, social and education needs and will support them as they reenter the community.

Delegate Joan Cadden has high hopes for the multifaceted Restart program. "It touches on all aspects of rehabilitation," she says, "by including drug rehabilitation experts, along with psychiatrists, psychologists, and social workers." Cadden says the education portion of the program is much stronger than what was offered in the past.

In Texas, where the prison system is almost at capacity, lawmakers are looking at the probation system as a solution to higher costs and overcrowding. The average daily cost of incarcerating an inmate is $40.06. Probation costs $2.27 per day.

"We have a unique opportunity this session to alter the direction we have been traveling--building more and more prison units," says Senator John Whitmire, chair of the Texas Senate Criminal Justice Committee.

WHAT'S AHEAD

As lawmakers explore options for meeting the basic task of incarcerating criminal offenders and carrying out state criminal justice policies, they must not forget the rights of victims," says Darrington of Idaho. "Attempts to control corrections costs should not come at the expense of crime victims. Society would benefit more from emphasis on the old adage, "Don't do the crime and you won't do the time." he says.

INCARCERATION RATES
(PER 100,000 RESIDENTS, 2003)

     HIGHEST              LOWEST

 Louisiana (801)        Maine (149)
Mississippi (768)     Minnesota (155)
   Texas (702)      North Dakota (181)
 Oklahoma (636)     Rhode Island (184)
  Alabama (635)     New Hampshire (188)

Arturo Petez is a fiscal expert at NCSL.

PERCENTAGE CHANGE IN
GENERAL FUND
APPROPRIATIONS FOR
CORRECTIONS,

FY 2004 TO FY 2005

Alabama           0.2%
Alaska            2.7%
Arizona           2.3%
Arkansas          2.3%
California       15.8%
Colorado          6.5%
Connecticut      -2.4%
Delaware          2.8%
Florida           5.1%
Georgia          -2.6%
Hawaii            3.7%
Idaho             2.3%
Illinois         -2.9%
Indiana          -3.9%
Iowa              2.1%
Kansas            3.8%
Kentucky          n.a.
Louisiana         8.1%
Maine            11.4%
Maryland          1.7%
Massachusetts     1.6%
Michigan          6.1%
Minnesota         0.9%
Mississippi       1.0%
Missouri          6.3%
Montana           1.2%
Nebraska          6.0%
Nevada            4.0%
New Hampshire     2.0%
New Jersey        4.9%
New Mexico        1.2%
New York          4.5%
North Carolina    6.0%
North Dakota      3.9%
Ohio              2.4%
Oklahoma          2.8%
Oregon            8.3%
Pennsylvania      3.0%
Rhode Island      1.5%
South Carolina    0.2%
South Dakota      8.4%
Tennessee         1.4%
Texas             0.0%
Utah              4.0%
Vermont          10.0%
Virginia          8.7%
Washington        3.6%
West Virginia     1.5%
Wisconsin         0.7%
Wyoming          13.1%
Total             4.9%

Source: 2004 survey of National Association
of Legislative Fiscal Offices, NCSL.