Budget Briefing: Corrections...97% State Restricted $40,939,600 2% Local $8,960,100 1% January 2019 The Corrections budget is financed with 97% general fund/general purpose revenue

Budget Briefing:Corrections

Robin R. Risko, Senior Fiscal Analyst

January 2019

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

• Offender Success: Programs and Services

January 2019House 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, programming, and transportation

• 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, offender success programs (including education, job training, and career readiness programming 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 2018-19 is October 1, 2018 through September 30, 2019.

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 2018-19 MDOC Budget

Fund Source Funding Description

Gross Appropriations $2,019,056,200 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

$2,019,056,200 Gross appropriations excluding IDGs; avoids double counting

when adding appropriation amounts across budget areas

Federal Revenue 5,315,200 Federal grant or matching revenue; generally dedicated to

specific programs or purposes

Local Revenue 8,960,100 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

40,939,600 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

$1,963,841,300 Unrestricted revenue from taxes and other sources available

to fund basic state programs and other purposes determined

by the Legislature


FY 2018-19 Fund Sources

Federal$5,315,200

0%

State GF/GP$1,963,841,300

97%

State Restricted$40,939,600

2%

Local$8,960,100

1%

January 2019

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

House Fiscal Agency 7

MDOC Share of Total State Budget

Health and Human Services

$25,488,432,700 45%

School Aid$14,844,588,800

26% Transportation$5,009,788,300

9%

Higher Education/ Community Colleges

$2,077,948,100 4%

Corrections$2,019,056,200

3%

Revenue Sharing$1,314,405,300

2%

Talent & Economic Development

$1,260,746,100 2%

Other Areas$5,215,052,600

9%

January 2019

The MDOC budget represents 3% of the $57.2 billion state budget (adjusted gross) for

FY 2018-19.


MDOC Share of Total GF/GP Budget

Health and Human Services

$4,439,614,400 42%

Corrections$1,963,841,300

19%

Higher Education$1,046,017,900

10%

State Police$493,173,800

5%

Debt Service/SBA Rent

$353,650,600 3%

School Aid/ Dept of Education

$179,423,600 2%

Other Areas$1,951,203,300

19%

January 2019

The MDOC budget represents 19% of the state’s $10.4 billion GF/GP budget for FY

2018-19.


MDOC Funding History

January 2019

Funding for the MDOC has increased by 14.1% since FY 2004-05, driven mainly by

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

retirement, and overtime costs for employees.

$0

$500

$1,000

$1,500

$2,000

$2,500

FY2005

FY2006

FY2007

FY2008

FY2009

FY2010

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FY2018

FY2019

Mill

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s

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 behavioral programming, prisoner transportation, and staff training

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

o Offender Success Services: prisoner reintegration programs aimed at reducing recidivism through prisoner assessment, case management, and delivery of services; programming includes education, job training, and career readiness programming for prisoners while they are incarcerated

o Community Programs: programs to provide alternatives to incarceration including community corrections programs, residential services, residential probation diversions, 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 2018-19 Gross Appropriations

January 2019

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

including physical and mental health care for prisoners.

Prison Operations$1,207,794,900

60%

Parole/Probation Services

$268,113,700 13%

Prisoner Health Care$251,579,700

13%

Departmental Administration and

Support$86,080,400

4%

Offender Success Services

$87,579,200 4%

Prisoner Mental Health Care

$61,019,100 3%

Community Programs$56,889,200

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

January 2019

As of January 1, 2019, the total offender population under MDOC supervision was

95,964.

Probationers43,098 45%

Prisoners38,789 40%

Parolees14,077 15%


Growth in MDOC GF/GP Spending and the Prisoner Population

January 2019

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

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

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2018

2019

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Prison Population*

MDOC GF/GP Expenditures*

*2018 data is as of January 10, 2019; 2019 figures are 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

January 2019

8,6

71

11,1

07

11,9

13

12,2

69

12,2

99

11,3

91

11,7

56

12,0

91

12

,29

4

13,1

15

12,8

25

13,1

98

13,9

58

14,2

76

16,3

67

17,4

02

17,1

89

16,0

18

17,8

64

17,4

35

20,3

65

20,3

12

18,1

34

15,8

17

14,5

21

13,8

35

13,4

72

15,2

34

15,1

47

14,0

77

39,4

91

43,1

61

44,9

39

48,2

10

50,9

44

51,1

17

49,8

82

48,5

29

48,8

77

52,4

56

51,6

06

50,6

40

52,7

88

55,7

01

55,9

37

55,9

37

55,1

99

53,3

32

53,4

13

57,5

21

57,8

99

59,4

72

53,3

75

49,4

58

47,5

26

49,6

43

45,1

35

44,9

91

44,0

89

43,0

98

Parolees

Probationers


Recent Budget Growth


Corrections Spending Growth by Program

January 2019

From FY 2003-04 to FY 2017-18, Corrections spending increased at an average annual rate

of 1.2%. Spending on prisoner reentry services increased at an average annual rate of 6.6%

and spending on field operations (probation and parole) increased at an average annual rate

of 4.2%.

$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 $1,943

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

Sp

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

*2018 data is as of January 10, 2019


MDOC Share of Active Classified Employees

January 2019

As of December 29, 2018, the total number of active classified employees in the state’s

workforce was 48,072. Of those, 25% were employed by the MDOC.

Corrections11,94125%

Rest of State Government

36,13175%


Corrections Personnel Costs

January 2019

Since FY 2003-04, personnel costs for the MDOC have risen by an average of 1.2% annually.

The largest drivers behind these cost increases have been retirement and overtime costs. In

FY 2017-18, these costs accounted for 32.7% of all personnel costs compared to 18.3% in FY

2003-04.

$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 $1,415

FY2004

FY2005

FY2006

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

Sp

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in m

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Regular Salaries Overtime Fringe Benefits Retirement/OPEB FICA/Medicare



Corrections Personnel Costs Per Employee

January 2019

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

3.8% annually since FY 2003-04. Again, retirement and overtime costs have played the

largest role, with average annual per-employee increases of 8.0% across the period. Regular

salary costs increased by an average of 2.2% annually.

$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 $115,008

FY2004

FY2005

FY2006

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

Ave

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Regular Salaries Overtime Fringe Benefits Retirement FICA/Medicare



Prison Operations: Correctional Facilities


Prison Operations

o The MDOC currently operates 29 correctional facilities located in 19 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 76%, of the FY 2018-19 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, $41.5 million in FY 2017-18, are

included in costs for offender success services, instead of in costs for prisoner

custody


Prisoner Custody, Care, and Programs

January 2019

FY 2018-19 appropriation for prisoner custody, care, and programs is $1,522,793,700.

Facilities$1,067,887,700

70%

Physical Health Care$251,579,700

17%

Food Service$70,392,800

5%

Mental Health Care$61,019,100

4%

Admin/Maintenance$45,146,400

3%

Transportation$26,768,000

2%


Costs Per Prisoner by Security Level

January 2019

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

FY 2019

Appropriated

Level I

$30,138

Level II

$35,909

Level IV

$44,913

Multi-Level

$38,646

Reception

$45,585

SAI

$47,023

Average Per Capita

$37,080


Prison Operations - Average Cost Per Prisoner

January 2019

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

mental health care costs. Per-prisoner costs grew by an average of 2.3% 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 $1,210.2

$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$31,222

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

Pri

so

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(in

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)

Average Cost Per Prisoner



Health Care - Average Cost Per Prisoner

January 2019

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

treatment services, increased significantly over the FY 2003-04 to FY 2017-18 time period.

Per-prisoner costs for health care increased by an average of 4.1% annually during this time.

$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 $307.0

$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 $7,920

FY2004

FY2005

FY2006

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

Hea

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Care

Sp

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Physical Health Care Mental Health Care Substance Abuse

Average Cost Per Prisoner



Prisoner Age Distribution and Health Care

January 2019

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

population. In 2003, 35.5% of prisoners were over age 40 and 11.8% were over age 50. By

2017, those percentages increased to 44.8% over age 40 and 23.2% over age 50.

2.1% 1.9% 2.2% 2.2% 2.2% 2.0% 1.8% 1.3%

30.9% 29.9% 28.9% 27.5% 28.0% 27.9% 27.9% 26.5%

31.5%30.0% 28.8%

28.2% 27.7% 27.1% 27.1%27.4%

23.7%24.6%

24.8%24.7% 23.8% 23.0% 21.6%

21.6%

9.0% 10.4% 11.3% 12.7% 13.2% 14.1% 14.6% 15.1%

2.8% 3.2% 4.0% 4.6% 5.1% 5.9% 7.0% 8.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dec 2003 Dec 2005 Dec 2007 Dec 2009 Dec 2011 Dec 2013 Dec 2015 Dec 2017

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, 2019, the MDOC employed 1,136 active parole and probation agents responsible for supervising 57,175 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

January 2019

FY 2018-19 appropriation for Field Operations is $266,262,600.

Field Operations$215,083,300

81%

Community Programs$37,073,600

14%

Other Parole/Probation Services/Programs

$10,378,400 4%

Parole Board Operations$3,727,300

1%


Parole/Probation - Average Cost Per Offender

January 2019

Spending for parole and probation has increased by an average of 3.9% annually since FY

2003-04. The cost per offender increased by an average of 5.8% per year over this period.

The use of electronic monitoring techniques significantly increased starting in 2010.

$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 $213.8

$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 $3,740

FY2004

FY2005

FY2006

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

Pa

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(in

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Average Cost Per Offender



Offender Success:Programs and Services


Offender Success Programs and Serviceso Aim 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 Involve interagency and state/local collaboration: state departments, local law

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

business partners

o $87.6 million appropriation in FY 2018-19, includes roughly $55.5 million for

education, job training, and career readiness programming for prisoners while they

are incarcerated

o Offender Success funding supports:

• Community-based and prison-based offender success 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 offender success planning administrative costs and program evaluation


Offender Success Spending

January 2019

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. In FY

2018-19, “prisoner reentry” was renamed “offender success”.

$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

$67.8

FY2004

FY2005

FY2006

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

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For more information about theCorrections budget:

January 2019

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]

Documents

Budget Briefing: Corrections...97% State Restricted $40,939,600 2% Local $8,960,100 1% January 2019 The Corrections budget is financed with 97% general fund/general purpose revenue