NCJ Number
100445
Date Published
1984
Length
63 pages
Annotation
This report, prepared by California's principal capital outlay analyst and senior economist, considers the advisability of using lease or lease-purchase arrangements to finance the acquisition of State prison facilities.
Abstract
An overview of California's need for new prison construction considers the scope of the existing prison construction program, the financing thus far provided by the legislature, and the options available for securing the balance of funds to complete the program. The various capital outlay funding alternatives are then assessed according to cost, the allocation of costs over time and between taxpayer groups, and the time required to obtain the financing. In its 1984 report, the California Department of Corrections recommended legislation authorizing the State Public Works Board to finance prison construction and acquisition through lease-purchase arrangements and suggested that the board be given flexibility to issue certificates of participation, revenue bonds, or any other financial market instruments deemed appropriate. This current report, however, recommends that the legislature use lease-purchase financing only after it has decided not to use the State's General Fund monies, tidelands oil revenues, or general obligation bonds to finance completion of the prison construction program. This recommendation is based in the view that evidence is not yet sufficient to establish that lease-purchase financing is the least costly and most efficient financing alternative. Tabular data.