Slide 1

Cost-Benefit Analysis and Bail Reform

January 20, 2011

Christian Henrichson, Senior Policy Analyst, Cost-Benefit Analysis Unit

Presentation at the National Association of Counties (NACo) Annual Justice and Public Safety Retreat.

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Outline

• Economic analysis and cost-benefit analysis (CBA)

• Using CBA to evaluate justice policy and pretrial

• Resources for new CBA practitioners

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Economic analysis and cost-benefit analysis

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Forms of economic analysis

• Cost analysis• How much does this cost?

• Cost-effectiveness analysis• What is the best value for standard outputs?

• Cost-benefit analysis• What provides the greatest net benefit to society?

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Cost-Benefit Analysis is…

• A structured approach to policymaking.

• A type of economic evaluation that allows you to evaluate programs and policies from the perspectives of multiples stakeholders.

• A tool to identify the policies and programs that yield the greatest net benefit to society.

• Measures costs and benefits.

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CBA in five steps

1. Determine the impact of the initiative

2. Determine whose perspectives matter Taxpayers / Government Victims (Public safety) Defendants Families & communities

3. Measure costs

4. Measure benefits (in dollars)

5. Compare costs and benefits

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Using CBA to evaluate pretrial and justice policy

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CBA and pretrial

• There are few CBAs specifically on pretrial.• Studies of other justice issues, however, can provide guidance on a

cost-benefit analysis of pretrial.

• Perspectives to consider• Taxpayer – jail savings (benefit)• Taxpayer – cost of re-apprehension (cost)• Defendants – freedom from release (benefit) • Public safety – harm caused while released (cost)

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CBA Example: Incarcerating sentenced offenders

Violent Crime

Property Crime Drug Crime

$4.35 $1.10 $0.35

What does $1 dollar spent to incarcerate a sentenced offender in Washington

State generate in benefits to taxpayers and victims?

Source: Washington State Institute of Public Policy (WSIPP). http://www.wsipp.wa.gov/

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CBA Example: Raising the Age of Juvenile Jurisdiction in North Carolina

Perspective Net Present Value

Taxpayer Costs ($70.9)

Taxpayer Benefits $21.7

Victim Benefits $3.6

Youth Benefits $97.9

Total Benefits $123.1

Total Net Benefit $52.3

Annual cost and benefits, dollars in millions

• An investment of $1 generates $1.74 in benefits

Source: Cost-Benefit Analysis of Raising the Age of Juvenile Jurisdiction in North Carolina .

Vera Institute of Justice. 2011. http://www.vera.org

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Resources

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Cost-Benefit Analysis Resources

Cost-Benefit Knowledge Bank for Criminal Justice

Funded by the U.S. Bureau of Justice Assistance

Toolkit for new practitioners How-to guides on technical topics Podcasts with experts in the field Webinars on advanced topics

References Searchable database of 500+ studies Links to other resources on the web

Community Blog, social networking

cbkb.org@cbkbank

costbenefit

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Additional Resources

Cost-Benefit and Pre-trialLandes, William M. “The Bail System: An Economic Approach.” 1973.http://www.jstor.org/pss/724027Cohen, Mark A.; Bowles, Roger. “Pre-Trial Detention: A Cost-Benefit Approach.”

2008. http://nicic.gov/Library/023453

Measuring Public Safety Benefits

Cohen, Mark A. and Alex Piquero. (2009). New Evidence on the Monetary Value of Saving a High

Risk Youth. Journal of Quantitative Criminology, Volume 25, pp. 25-49.

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1077214

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Attributions

This project is supported by Grant No. 2009-MU-BX K029 awarded by the Bureau of Justice Assistance. The Bureau of Justice Assistance is a component of the Office of Justice Programs, which also includes the Bureau of Justice Statistics, the National Institute of Justice, the Office of Juvenile Justice and Delinquency Prevention, the Office for Victims of Crime, the Community Capacity Development Office, and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking. Points of view or opinions in this document are those of the author and do not necessarily represent the official position or policies of the U.S. Department of Justice.