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Price of Prisons: What Incarceration Costs Taxpayers

NCJ Number
237573
Author(s)
Christian Hendrickson; Ruth Delaney
Date Published
January 2012
Length
28 pages
Annotation
A methodology for calculating the full cost of prisons to taxpayers - which was developed in collaboration with a panel of advisers in the fields of corrections and public finance - was used to calculate prison costs in 40 States.
Abstract
The study found that the total taxpayer costs of prisons in these States was 13.9 percent higher than the cost reflected in those States' combined corrections budgets. The total price to taxpayers was $39 billion, $5.4 billion more than the $33.6 billion reflected in corrections budgets alone. The greatest cost drivers outside of the expenditures of corrections departments were as follows: underfunded contributions to retiree health care for corrections employees ($1.9 billion); States' contributions to retiree health care on behalf of their corrections departments ($837 million); employee benefits, such as health insurance ($613 million); capital costs ($485 million); hospital and other health care for the prison population ($335 million); and underfunded pension contributions for corrections employees ($304 million). The report advises that although it is essential to recognize the full amount a State spends on its prisons, it is also important to recognize that officials are responsible for ensuring their prisons are safe, secure, and humane, which is a necessarily expensive undertaking. This is why States should not be compared on their per-inmate spending, since low per-inmate costs may invite poorer outcomes in terms of safety and recidivism. This report identifies measures that have proven to reduce spending without jeopardizing public safety, such as modifying sentencing and release policies, strengthening strategies to reduce recidivism, and improving operating efficiency. Appended methodology and a State survey on prison costs