budget briefing: corrections · 2018. 1. 25. · key budget terms fiscal year: the state's...

Budget Briefing:Corrections

Robin R. Risko, Senior Fiscal Analyst

January 2018

Briefing Topics

o Funding Sources

o Appropriation Areas

o Major Budget Topics

• Offender Population

• Recent Budget Growth

• Prison Operations: Correctional Facilities

• Field Operations: Parole and Probation

• Prisoner Reentry Services

January 2018House Fiscal Agency 2

Department of Corrections

o The Department of Corrections (MDOC) administers the state's adult prison, parole, and probation systems

o Major departmental functions include:

• Operation of all state correctional institutions housing adults who are convicted of felonies and are sentenced to prison; operation includes provision of physical and mental health care, food service, transportation, and programming

• Monitoring and supervising all parolees and probationers who are under the department's jurisdiction; convicted felons who are not sentenced to prison are either sentenced to county jail or are supervised in the community through the probation system

• Oversight over community corrections programs, prisoner reentry programs (including education and job training for prisoners while they are incarcerated), and grant programs designed to encourage alternatives to prison placement for appropriate offenders


Key Budget Terms

Fiscal Year: The state's fiscal year (FY) runs from October to September. FY 2017-18 is October 1, 2017 through September 30, 2018.

Appropriation: Authority to expend funds. An appropriation is not a mandate to spend. Constitutionally, state funds cannot be expended without an appropriation by the Legislature.

Line Item: Specific appropriation amount in a budget bill which establishes spending authorization for a particular program or function.

Boilerplate: Specific language sections in a budget bill which direct, limit, or restrict line item expenditures, express legislative intent, and/or require reports.

Lapse: Appropriated amounts that are unspent or unobligated at the end of a fiscal year. Appropriations are automatically terminated at the end of a fiscal year unless designated as a multi-year work project under a statutory process. Lapsed funds are available for expenditure in the subsequent fiscal year.

Note: Unless otherwise indicated, historical budget figures in this presentation have not been adjusted for inflation.


Funding Sources


FY 2017-18 MDOC Budget

Fund Source Funding Description

Gross Appropriations $2,001,919,200 Total spending authority from all revenue sources

Interdepartmental

Grants (IDG) Revenue

0 Funds received by one state department from another state

department, usually for services provided

Adjusted Gross

Appropriations

$2,001,919,200 Gross appropriations excluding IDGs; avoids double counting

when adding appropriation amounts across budget areas

Federal Revenue 5,293,800 Federal grant or matching revenue; generally dedicated to

specific programs or purposes

Local Revenue 8,842,400 Revenue received from local units of government for state

services

Private Revenue 0 Revenue from individuals and private entities, including

payments for services, grants, and other contributions

State Restricted

Revenue

41,149,400 State revenue restricted by the State Constitution, state

statute, or outside restriction that is available only for

specified purposes; includes most fee revenue

State General

Fund/General Purpose

(GF/GP) Revenue

$1,946,633,600 Unrestricted revenue from taxes and other sources available

to fund basic state programs and other purposes determined

by the Legislature


FY 2017-18 Fund Sources

Federal$5,293,800

0%

State GF/GP$1,946,633,600

97%

State Restricted$41,149,400

2%

Local$8,842,400

1%


The Corrections budget is financed with 97% general fund/general purpose revenue.

MDOC Share of Total State Budget

Health and Human Services

$25,495,662,900 46%

School Aid$14,584,313,900

26%Transportation$4,345,403,700

8%

Higher Education/ Community Colleges

$2,028,550,900 4%

Corrections$2,001,919,200

3%

Revenue Sharing$1,278,215,000

2%

Talent & Economic Development

$1,179,421,800 2%

Other Areas$4,838,702,900

9%


The MDOC budget represents 3% of the $55.8 billion state budget (adjusted gross) for

FY 2017-18.

MDOC Share of Total GF/GP Budget

Health and Human Services

$4,380,531,400 43%

Corrections$1,946,633,600

19%

Higher Education/Community Colleges

$1,280,279,500 13%

State Police$439,601,700

4%

Debt Service/SBA Rent

$354,150,600 4%

School Aid$215,000,000

2%Other Areas

$1,465,270,100 15%


The MDOC budget represents 19% of the state’s $10.1 billion GF/GP budget for FY

2017-18.

MDOC Funding History


Funding for the MDOC has increased by 17.4% since FY 2003-04, driven mainly by

increased costs for physical and mental health care for prisoners, and fringe benefit and

retirement costs for employees.

$0

$500

$1,000

$1,500

$2,000

$2,500

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

Mill

ions

GF/GP Restricted IDGs/Local/Private Federal

Appropriation Areas


MDOC Appropriation Areas

The Corrections budget is allocated into the following major spending areas:

o Prison Operations: operations of the state's correctional facilities, including physical and mental health care for prisoners, prisoner food service, prisoner transportation, prisoner programming, and staff training

o Parole and Probation Services: supervision and monitoring of parolees and probationers

o Prisoner Reentry Programs: prisoner reintegration programs aimed at reducing recidivism through prisoner assessment, case management, and delivery of services; programming includes education and job training for prisoners while they are incarcerated

o Community Programs: programs to provide alternatives to incarceration including community corrections programs, residential services, Public Safety Initiative, Goodwill Flip the Script, and Felony Drunk Driver Jail Reduction program

o Departmental Administration and Support: general administrative functions (e.g., Executive office, finance and accounting, information technology, legal affairs)


FY 2017-18 Gross Appropriations


Roughly 76% of the Corrections $2 billion budget is allocated to prison operations,

including physical and mental health care for prisoners.

Prison Operations$1,215,785,800

61%

Parole/Probation Services

$265,438,900 13%

Prisoner Health Care$249,784,000

12%

Departmental Administration and

Support$77,977,800

4%

Reentry Programs$77,587,100

4%

Prisoner Mental Health Care

$60,606,400 3%

Community Programs$54,739,200

3%

Major Budget Topics


Offender Population


The Offender Population

o Prisoners:

• Felony offenders committed to the jurisdiction of the MDOC

• Housed in prisons and special alternative incarceration

o Parolees:

• Prisoners who have served at least their minimum sentence and who have

been released to a period of supervision in the community

• Supervised by MDOC field agents

o Probationers:

• Felony offenders sentenced to a probationary term of supervision in the

community

• Supervised by MDOC field agents


MDOC Supervised Population


As of January 1, 2018, the total offender population under MDOC supervision was

98,924.

Probationers44,089 45%

Prisoners39,688 40%

Parolees15,147 15%

Growth in MDOC GF/GP Spending and the Prisoner Population


0

10,000

20,000

30,000

40,000

50,000

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

Sp

en

din

g (

in m

illi

on

s)

Prison Population*

MDOC GF/GP Expenditures*

* FY 2018 based on year-to-date GF/GP appropriations and budgeted prisoner counts

Prison Population Changes

o Changes in the prison population are a function of the movement of offenders into

and out of the system

o Entering the system:

• New court commitments: felony offenders sentenced to prison

• Parole/probation violators: sent to prison due to new sentences or technical

violations

• Court returns: prisoner returns from court (sometimes with additional sentences

imposed)

• Other returns: from community placement, from county jail, from mental health

hospital, from escape of MDOC custody

o Exiting the system:

• Parolees: granted parole by the Michigan Parole Board

• Released to court: for new trial or appeal

• Community Residential Program: community supervision prior to truth-in-

sentencing

• Discharged at maximum sentence

• Other exit: death, temporary county jail stay, release to mental health hospital,

escape


Parole and Probation Populations


5,6

69

5,8

75

6,9

90

8,6

71

11

,10

7

11

,91

3

12

,26

9

12

,29

9

11

,39

1

11

,75

6

12

,09

1

12

,29

4

13

,11

5

12

,82

5

13

,19

8

13

,95

8

14

,27

6

16

,36

7

17

,40

2

17

,18

9

16

,01

8

17

,86

4

17

,43

5

20

,36

5

20

,31

2

18

,13

4

15

,81

7

14

,52

1

13

,83

5

13

,47

2

15

,23

4

15

,14

7

32

,73

7

34

,67

4

34

,04

4

39

,49

1

43

,16

1

44

,93

9

48

,21

0

50

,94

4

51

,11

7

49

,88

2

48

,52

9

48

,87

7

52

,45

6

51

,60

6

50

,64

0

52

,78

8

55

,70

1

55

,93

7

55

,93

7

55

,19

9

53

,33

2

53

,41

3

57

,52

1

57

,89

9

59

,47

2

53

,37

5

49

,45

8

47

,52

6

49

,64

3

45

,13

5

44

,99

1

44

,08

9

Parolees

Probationers

Recent Budget Growth


Corrections Spending Growth by Program


From FY 2002-03 to FY 2016-17, Corrections spending increased at an average annual

rate of 1.3%. Spending on prisoner reentry services increased at an average annual

rate of 6.8% and spending on field operations (probation and parole) increased at an

average annual rate of 4.0%.

$1,645 $1,637

$1,746

$1,862 $1,927

$2,039 $2,013 $1,976 $1,948 $1,949 $1,960

$1,998 $1,983 $1,949 $1,975

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

Sp

en

din

g (

in m

illi

on

s)

Prison Operations Health/Mental Health Field Operations Community Prg Department Admin Reentry

MDOC Share of Active Classified Employees


As of January 1, 2018, the total number of active classified employees in the state's

workforce was 47,770. Of those, 25% were employed by the MDOC.

Corrections12,12825%

Rest of State Government

35,64275%

Corrections Personnel Costs


Since FY 2002-03, personnel costs for the MDOC have risen by an average of 1.4%

annually. The largest drivers behind these cost increases have been fringe benefit and

retirement costs. In FY 2016-17, these costs accounted for 40.6% of all personnel costs

compared to 25.0% in FY 2002-03.

$1,171 $1,172

$1,302

$1,385 $1,400

$1,500 $1,452

$1,396 $1,405

$1,448 $1,446 $1,454 $1,438 $1,391 $1,391

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

Sp

en

din

g (

in m

illi

on

s)

Regular Salaries Overtime Fringe Benefits Retirement/OPEB FICA/Medicare

Corrections Personnel Costs Per Employee


Personnel costs on a per employee basis for the department have risen by an average

of 4.1% annually since FY 2002-03. Again, fringe benefit and retirement costs have

played the largest role, with average annual per-employee increases of 7.4% across the

period. Regular salary costs increased by an average of 2.1% annually.

$68,001 $69,853

$78,718

$84,205 $85,584

$94,086 $92,137 $93,414

$98,757

$106,914 $109,022

$113,873 $114,545 $110,415

$113,093

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

Avera

ge C

osts

Per

Em

plo

yee

Regular Salaries Overtime Fringe Benefits Retirement FICA/Medicare

Prison Operations: Correctional Facilities


Prison Operations

o The MDOC currently operates 31 correctional facilities located in 20 counties

across the state, including the Detroit Reentry Center and Special Alternative

Incarceration Program (appropriation for Detroit Reentry Center is included in Field

Operations)

o In addition, the MDOC operates the City of Detroit Detention Center at the site of

the former Mound Correctional Facility, which closed in December 2011

(appropriation for the City of Detroit Detention Center is included in Field

Operations, and is paid for by the City of Detroit)

o About $1.5 billion, or roughly 77%, of the Corrections budget is devoted to costs

pertaining to prisoner custody (e.g., housing, physical and mental health care, food,

transportation, and treatment programs)

o Academic and vocation programming costs, $47.0 million in FY 2016-17, are

included in costs for reentry services, instead of in costs for prisoner custody


Prisoner Custody, Care, and Programs


FY 2017-18 appropriation for prisoner custody, care, and programs is $1,526,176,200.

Facilities$1,092,040,700

71%

Physical Health Care$249,784,000

16%

Mental Health Care$60,606,400

4%

Food Service$57,163,500

4%

Admin/Maintenance$41,011,300

3%

Transportation$25,570,300

2%

Costs Per Prisoner by Security Level


FY 2016

Actual

Level I $29,357

Level II

$33,818

Level IV

$42,401

Multi-Level

$36,406

Reception

$54,746

SAI

$52,887

Average Per Capita

$35,253

FY 2017

Actual

Level I

$29,580

Level II

$34,482

Level IV

$43,315

Multi-Level

$37,329

Reception

$53,057

SAI

$56,057

Average Per Capita

$36,106

FY 2018

Appropriated

Level I

$29,529

Level II

$33,894

Level IV

$41,132

Multi-Level

$37,705

Reception

$43,753

SAI

$45,224

Average Per Capita

$36,011

Prison Operations - Average Cost Per Prisoner


This chart reviews total prison operations spending excluding health care and direct

mental health care costs. Per-prisoner costs grew by an average of 2.2% per year over

this period.

$1,117.0 $1,105.2

$1,213.5

$1,283.4$1,308.1

$1,375.1

$1,313.1

$1,243.7$1,216.5 $1,217.3

$1,189.4

$1,234.9 $1,223.9$1,190.0 $1,205.9

$22,848 $22,761

$24,576 $24,942$26,055

$28,244 $28,874$28,194 $28,355 $27,923

$27,216$28,480 $28,710 $28,937

$30,401

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

Pri

so

n O

pe

rati

on

s S

pen

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in m

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on

s)

Average Cost Per Prisoner

Health Care - Average Cost Per Prisoner


Spending for prisoner physical and mental health care services, including substance

abuse treatment services, increased significantly over the FY 2002-03 to FY 2016-17

time period. Per-prisoner costs for health care increased by an average of 3.7%

annually during this time.

$249.0 $248.4$237.1

$262.3

$294.5$306.2

$327.5 $323.0 $320.6$312.5

$326.6$314.7 $309.4

$326.5

$312.2

$5,093 $5,115$4,802

$5,097

$5,867$6,290

$7,202 $7,322 $7,473$7,169

$7,472$7,259 $7,258

$7,941 $7,871

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

Healt

h C

are

Sp

en

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in m

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on

s)

Physical Health Care Mental Health Care Substance Abuse

Average Cost Per Prisoner

Prisoner Age Distribution and Health Care


One major factor in the rise of per-prisoner health care costs is the aging of the prison

population. In 2002, 34.3% of prisoners were over age 40 and 10.8% were over age 50.

By 2016, those percentages increased to 45.2% over age 40 and 23.4% over age 50.

2.4% 2.0% 1.9% 1.5% 2.5% 2.0% 2.0% 1.0%

31.0% 30.4% 29.3%26.7%

27.9% 27.7% 28.1%26.3%

32.3%30.7%

29.7%28.8%

28.2% 27.5% 26.9%27.5%

23.5%24.3%

24.7%25.2% 23.9%

23.5% 22.1%21.8%

8.2% 9.5% 10.9%13.0% 12.8% 13.8% 14.5%

15.4%

2.6% 3.1% 3.5% 4.8% 4.7% 5.5% 6.4% 8.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dec 2002 Dec 2004 Dec 2006 Dec 2008 Dec 2010 Dec 2012 Dec 2014 Dec 2016

60+

50-59

40-49

30-39

20-29

<20

Prisoners

by Age

Group

Field Operations: Parole and Probation


Field Operations

o Field Operations Administration is responsible for state parole and probation supervision, as well as for other methods of specialized supervision

o The largest component of Field Operations is parole and probation; as of January 1, 2018, the MDOC employed 1,266 active parole and probation agents responsible for supervising 59,236 offenders

o Appropriations for the City of Detroit Detention Center and the Detroit Reentry Center are included in the Field Operations unit

o Community reentry centers provide structured housing for parolees placed in the program as a condition of their parole, or placed in the program as a sanction for violating their parole (non-compliance violations or new misdemeanor or non-assaultive felony charges)

o Electronic tether, substance abuse testing and treatment services, residential services, and the Residential Alternative to Prison and Felony Drunk Driver Jail Reduction and Community Treatment programs are all programs available to offenders who meet certain eligibility requirements as alternatives to incarceration


Field Operations


FY 2017-18 appropriation for Field Operations is $263,315,700.

Field Operations$214,438,600

81%

Community Programs$34,648,600

13%

Other Parole/Probation Services/Programs

$10,378,400 4%

Parole Board Operations$3,850,100

2%

Parole/Probation - Average Cost Per Offender


Spending for parole and probation increased by an average of 3.8% annually since FY

2002-03. The cost per offender increased by an average of 5.3% per year over this

period. The use of electronic monitoring techniques significantly increased starting in

2010.

$126.1 $124.5

$136.0 $139.3 $141.3

$154.6

$165.6

$180.9$186.6

$199.0 $199.8

$209.0 $206.5 $208.6$213.4

$1,744 $1,698 $1,878 $2,008 $1,982 $2,063 $2,116 $2,267$2,609

$3,048 $3,220 $3,292 $3,523 $3,464 $3,603

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

Paro

le/P

rob

ati

on

Sp

en

din

g (

in m

illi

on

s)

Average Cost Per Offender

Prisoner Reentry Services


Prisoner Reentry

o Aims to reduce recidivism through prisoner assessment, case planning and

management, and coordinated services from the time of entry into prison through

aftercare in the community

o Involves interagency and state/local collaboration: state departments, local law

enforcement, crime victims' advocates, faith-based organizations, community

business partners

o $77.6 million appropriation in FY 2017-18, which includes roughly $49.1 million for

education and job training programs for prisoners while they are incarcerated

o Prisoner reentry funding supports:

• Community-based and prison-based prisoner reentry planning, case

management, and community in-reach to paroling prisoners

• Employment services and job training, education programs, transitional housing,

day reporting, other planning and support services

• Demonstration projects to develop strategies for improving success of parolees

with mental illness

• Specialized programming for prisoners with mental health issues and other

special needs

• Local prisoner reentry planning administrative costs and program evaluation


Prisoner Reentry Spending


The Michigan Prisoner Reentry Initiative was implemented statewide in FY 2007-08. In FY 2013-14,

appropriations for community-based reentry programs were reduced and funding reallocated to

correctional facilities for more reentry-related programming to occur before inmates were released

from prison. In FY 2015-16, all reentry-related staff positions and funding throughout the budget

were reorganized into one area, leading to the appearance of a major increase in reentry funding.

$35.2$32.3 $31.2 $32.6

$44.1$46.4

$65.0

$78.5

$84.7

$78.6

$70.6$67.3

$57.0 $56.4

$72.3$74.6

FY2002

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

Fundin

g (

in m

illio

ns)

For more information about theCorrections budget:


HFA Resources

http://www.house.mi.gov/hfa/Corrections.asp

Contact Information

Robin R. Risko

Senior Fiscal Analyst

[email protected]

(517) 373-8080

http://www.house.mi.gov/hfa/Corrections.asp

mailto:[email protected]

budget briefing: corrections · 2018. 1. 25. · key budget terms fiscal year: the state's...

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