Budget Briefing: Corrections
Robin R. Risko, Associate Director
January 2021 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
House Fiscal Agency 2 January 2021 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
House Fiscal Agency 3 January 2021 Key Budget Terms
Fiscal Year: The state’s fiscal year (FY) runs from October to September. FY 2020-21 is October 1, 2020 through September 30, 2021.
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 that establishes spending authorization for a particular program or function in a budget bill.
Boilerplate: Specific language sections in a budget bill that 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.
House Fiscal Agency 4 January 2021 Funding Sources
House Fiscal Agency 5 January 2021 FY 2020-21 MDOC Budget
Fund Source Funding Description
Gross Appropriations $2,060,788,400 Total spending authority from all revenue sources
Interdepartmental 0 Funds received by one state department from another state Grants (IDG) Revenue department, usually for services provided Adjusted Gross $2,060,788,400 Gross appropriations excluding IDGs; avoids double counting Appropriations when adding appropriation amounts across budget areas Federal Revenue 196,370,900 Federal grant or matching revenue; generally dedicated to specific programs or purposes Local Revenue 9,680,600 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 45,478,500 State revenue restricted by the State Constitution, state Revenue statute, or outside restriction that is available only for specified purposes; includes most fee revenue State General $1,809,258,400 Unrestricted revenue from taxes and other sources available Fund/General Purpose to fund basic state programs and other purposes determined (GF/GP) Revenue by the legislature
House Fiscal Agency 6 January 2021 FY 2020-21 Fund Sources The Corrections budget is financed with 88% general fund/general purpose revenue in FY 2020-21, but, in a typical year, the budget is financed with roughly 98% general fund/general purpose revenue. The FY 2020-21 budget includes $191.0 million of federal Coronavirus Relief Fund revenue to assist the department with COVID-related costs.
Federal $196,370,900 10%
State Restricted $45,478,500 2%
Local $9,680,600 0%
State GF/GP $1,809,258,400 88%
House Fiscal Agency 7 January 2021 MDOC Share of Total State Budget The MDOC budget represents 3% of the state’s $61.6 billion budget (adjusted gross) for FY 2020-21.
School Aid $15,525,164,800 25% Transportation $5,103,407,500 8%
Higher Education/ Community Colleges $2,125,593,000 4%
Corrections $2,060,788,400 3%
Labor & Economic Opportunity $1,625,864,300 3% Health and Human Services Revenue $28,484,618,700 Sharing… 46% Other Areas $5,297,391,300 9%
House Fiscal Agency 8 January 2021 MDOC Share of Total GF/GP Budget The MDOC budget represents 17% of the state’s $10.6 billion GF/GP budget for FY 2020-21.
Corrections $1,809,258,400 17%
Higher Education $1,217,835,700 12%
State Police $439,376,600 4%
Debt Service/ Health and Human SBA Rent Services $345,305,600 $5,090,371,100 3% 48% School Aid/ Dept of Education $141,031,700 1% Other Areas $1,558,953,400 15%
House Fiscal Agency 9 January 2021 MDOC Funding History Funding for the MDOC has increased roughly 5.5% since FY 2006-07, driven mainly by increased costs for physical and mental health care for prisoners, and retirement and overtime costs for employees of the department.
$2,150
$2,100
$2,050
$2,000
$1,950
$1,900
$1,850 Millions $1,800
$1,750
$1,700
$1,650
$1,600 FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
GF/GP Restricted IDGs/Local/Private Federal House Fiscal Agency 10 January 2021 Appropriation Areas
House Fiscal Agency 11 January 2021 MDOC Appropriation Areas
The Corrections budget is allocated into the following major spending areas: o Prison Operations: operation of the state’s correctional facilities; includes 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; includes residential alternative to prison program and electronic monitoring o Offender Success Services: prisoner reintegration programs aimed at reducing recidivism through prisoner assessment, case management, and delivery of services; includes education, job training, and career readiness programming for prisoners while they are incarcerated o Community Programs: programs to provide alternatives to incarceration; includes community corrections programs, County Jail Reimbursement program, residential probation diversions, and Goodwill Flip the Script o Departmental Administration and Support: general administrative functions of the department; includes executive office, finance and accounting, information technology, legal affairs, and property management
House Fiscal Agency 12 January 2021 FY 2020-21 Gross Appropriations Roughly $1.6 billion, or 77%, of the Corrections $2.1 billion budget is allocated to prison operations, including physical and mental health care for prisoners.
Prisoner Health Care $257,989,100 12% Parole/Probation Services $232,593,000 11%
Departmental Administration and Support $104,011,900 5%
Offender Success Services $90,341,400 Prison Operations 4% $1,268,703,100 62% Community Programs $54,739,200 3%
Prisoner Mental Health Care $52,410,700 3%
House Fiscal Agency 13 January 2021 Major Budget Topics
House Fiscal Agency 14 January 2021 Offender Population
House Fiscal Agency 15 January 2021 The Offender Population o Prisoners: • Felony offenders committed to the jurisdiction of the MDOC
• Housed in prisons and special alternative incarceration program 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
House Fiscal Agency 16 January 2021 MDOC Supervised Population As of January 1, 2021, the total offender population under MDOC supervision was 80,744. This is a decrease of 12,069 offenders since a year ago, on January 1, 2020, when the total offender population was 92,813.
Prisoners 33,635 42%
Probationers 34,225 42%
Parolees 12,884 16%
House Fiscal Agency 17 January 2021 Growth in MDOC GF/GP Spending and the Prisoner Population
$2,000 Prison Population* 50,000 MDOC GF/GP Expenditures* $1,800
$1,600 40,000
$1,400
$1,200 30,000
$1,000
$800 20,000 Spending (in millions) (in Spending $600
$400 10,000
$200
$0 0
1992 2007 2014 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2008 2009 2010 2011 2012 2013 2015 2016 2017 2018 2019 2020 2021
*2020 figures reflect reduced GF/GP due to receipt of federal Coronavirus Relief Funds and federal disaster assistance funding; 2020 figures reflect a reduced prison population related to COVID-19; 2021 figures are based on year-to-date GF/GP appropriations and an estimated prison population
House Fiscal Agency 18 January 2021 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
House Fiscal Agency 19 January 2021 Average Parole and Probation Populations
Parolees
Probationers
59,472
57,899
57,521
55,937
53,375
55,199
53,413
55,937
53,332
55,701
49,458
52,788
52,456
49,643
51,606
50,640
47,526
50,944
51,117
48,877
49,882
48,210
48,529
44,931
45,135
44,939
43,482
41,526
43,048
34,225
20,365
20,312
18,134
17,864
17,435
17,402
17,189
16,367
16,018
15,817
14,521
14,276
13,958
13,835
13,732
13,472
13,198
13,115
12,825
12,713
12,520
12,409
12,299 12,294
12,269
12,091
11,913
11,756
11,711 11,391
House Fiscal Agency 20 January 2021 Recent Budget Growth
House Fiscal Agency 21 January 2021 Corrections Spending Growth by Program From FY 2005-06 to FY 2019-20, total Corrections spending increased at an average annual rate of about 1%. Spending on prisoner reentry services increased at an average annual rate of a little more than 6% and spending on field operations (probation and parole) increased at an average annual rate of a little more than 4%.
$2,039 $2,013 $1,976 $1,998 $1,983 $1,975 $1,968 $1,927 $1,948 $1,949 $1,960 $1,949 $1,942 $1,965
$1,862 Spending (in millions) (in Spending
FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Prison Operations Health/Mental Health Field Operations Community Prg Department Admin Reentry
*2020 data is as of December 15, 2020 House Fiscal Agency 22 January 2021 MDOC Share of Active Classified Employees As of December 26, 2020, the total number of active classified employees in the state’s workforce was 47,305. Of those, 11,331, or 24%, were employed by the MDOC.
Corrections 11,331 24%
Rest of State Government 35,974 76%
House Fiscal Agency 23 January 2021 Corrections Personnel Costs Since FY 2005-06, personnel costs for the MDOC have risen by almost 1% annually. The largest drivers behind these cost increases have been retirement and overtime costs. In FY 2019-20, these costs accounted for roughly 32% of all personnel costs compared to 22% in FY 2005-06.
$1,500 $1,475 $1,452 $1,448 $1,446 $1,454 $1,453 $1,438 $1,415
$1,385 $1,400 $1,396 $1,405 $1,391 $1,391 Spending (in millions) (in Spending
FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Regular Salaries Overtime Fringe Benefits Retirement/OPEB FICA/Medicare
*2020 data is as of December 15, 2020 House Fiscal Agency 24 January 2021 Corrections Personnel Costs Per Employee Personnel costs on a per employee basis have risen by an average of almost 4% annually since FY 2005-06. Again, retirement and overtime costs have played the largest role, with average annual per-employee increases of almost 6% across the period. Regular salary costs increased by an average of almost 3% annually.
$130,170
$121,424 $118,494 $113,873 $114,545 $113,093 $109,022 $110,415 $106,914
$98,757 $94,086 $92,137 $93,414
$84,205 $85,584 Average Employee Per Costs Average
FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Regular Salaries Overtime Fringe Benefits Retirement FICA/Medicare
*2019 data is as of January 17, 2020 House Fiscal Agency 25 January 2021 Federal Funding for COVID-19 o In FY 2019-20, the department was awarded $422.9 million in federal COVID Relief Funds; there are $191.0 million in the FY 2020-21 budget o COVID Relief Funds are used to cover personnel costs for employees exempt from the Federal Families First Coronavirus Response Act • Premium pay of $750 per pay period, prorated to hours worked, for custody staff and other public safety personnel • COVID-19 premium pay for other front line essential workers o In FY 2019-20, the department was awarded $5.2 million in federal disaster assistance funding o Disaster assistance funding was used to cover the following costs: • Establishment and operation of a quarantine unit at the Green Oaks facility • Personal protection equipment • Cleaning agents and disinfection-related materials • Hospital supplies, including medical and surgical supplies • Ambulance reimbursement • Non-congregate employee sheltering
House Fiscal Agency 26 January 2021 Prison Operations: Correctional Facilities
House Fiscal Agency 27 January 2021 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 (Detroit Reentry Center will be closed in 2021) 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 supported with local revenue received from the City of Detroit) o About $1.6 billion, or roughly 77%, of the FY 2020-21 Corrections budget is devoted to costs pertaining to prisoner custody (e.g., housing, physical and mental health care, food, transportation, treatment programs) o Academic and vocation programming costs, roughly $43.0 million in FY 2019-20, are included in costs for offender success services, instead of in costs for prisoner custody
House Fiscal Agency 28 January 2021 Prison Closures and Conversions o The following correctional facility closures and conversions have occurred over the past 10 years: • Muskegon Correctional Facility (Muskegon) – closed May 2011 due to cancellation of contract to house prisoners from Pennsylvania; reopened October 2012 as part of Ryan Correctional Facility conversion plan • Florence Crane Correctional Facility (Coldwater) – closed May 2011 • Mound Correctional Facility (Detroit) – closed December 2011 • Ryan Correctional Facility (Detroit) – converted to Detroit Reentry Center October 2012 • Camp Tuscola (Caro) – closed October 2012 • Kinross Correctional Facility (Kincheloe) – closed November 2015; prisoners transferred to former Hiawatha facility, which was reopened and named Kinross Correctional Facility • Pugsley Correctional Facility (Kingsley) – closed September 2016 • West Shoreline Correctional Facility (Muskegon) – closed March 2018 • Ojibway Correctional Facility (Marenisco) – closed December 2018 • Special Alternative Incarceration Program (Cassidy Lake) – downsized February 2020; moved to Cooper Street Correctional Facility • Detroit Reentry Center – closed January 2021
House Fiscal Agency 29 January 2021 Prisoner Custody, Care, and Programs Total FY 2020-21 appropriation for prisoner custody, care, and programming is $1,569,697,300.
Physical Health Care $257,989,100 17%
Food Service $72,211,100 5%
Mental Health Care $52,410,700 3%
Admin/Maintenance $39,667,400 3%
Transportation $30,993,600 Facilities 2% $1,116,425,400 71%
House Fiscal Agency 30 January 2021 Costs Per Prisoner by Security Level
FY 2019 FY 2020 FY 2021 Actual Actual Appropriated
Level I Level I Level I $31,912 $34,067 $32,642
Level II Level II Level II $37,318 $40,575 $38,336
Level IV Level IV Level IV $45,384 $48,433 $47,968
Multi-Level Multi-Level Multi-Level $40,665 $43,550 $41,887
Reception Reception Reception $53,626 $56,240 $44,139 SAI SAI SAI $90,144 $91,478 $66,850
Average Per Average Per Average Per Capita Capita Capita $39,391 $42,123 $40,139
House Fiscal Agency 31 January 2021 Prison Operations - Average Cost Per Prisoner This chart reviews total prison operations spending excluding spending for physical and mental health care. Per-prisoner costs grew by an average of roughly 3% per year over this period. The increase in FY 2019-20 can be attributed to the COVID-19 pandemic.
$1,375.1 $1,308.1 $1,313.1 $1,283.4 $1,243.7 $1,234.9 $1,223.9 $1,216.5 $1,217.3 $1,205.9 $1,206.6 $1,201.2 $1,189.4 $1,190.0 $1,170.9
$35,730
$30,401 $31,128 $30,769 $28,244 $28,874 $28,194 $28,355 $28,480 $28,710 $28,937 $27,923 $27,216 $26,055 $24,942
Average Cost Per Prisoner Prison Operations Spending (in millions) (in OperationsSpendingPrison
FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
*2020 data is as of December 15, 2020 House Fiscal Agency 32 January 2021 Health Care - Average Cost Per Prisoner Spending for prisoner physical and mental health care services, including substance abuse treatment services inside facilities and in community programs, increased significantly over the FY 2005-06 to FY 2019-20 time period. Per-prisoner costs increased by an average of almost 7% annually during this time. (In FY 2019-20, costs for substance abuse were rolled in with costs for mental health care.) $327.5 $323.0 $320.6 $326.6 $326.5 $312.5 $314.7 $306.2 $309.4 $312.2 $307.9 $309.5 $294.5 $295.9
$262.3 $8,801 $8,135 $7,941 $7,871 $7,944 $7,473 $7,472 $7,202 $7,322 $7,169 $7,259 $7,258
$6,290 $5,867
$5,097 Average Cost Per Prisoner Health Caremillions) (in HealthSpending
FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Physical Health Care Mental Health Care Substance Abuse *2020 data is as of December 15, 2020 House Fiscal Agency 33 January 2021 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 2006, 39.1% of prisoners were over age 40 and 14.4% were over age 50. By 2020, those percentages increased significantly to 48.0% over age 40 and 25.6% over age 50.
100% 3.5% 4.8% 4.7% 5.5% 6.4% 8.0% 8.6% 9.6% 10.9% 90% 13.0% 12.8% 13.8% 14.5% 15.4% 16.0% Prisoners 16.0% 80% by Age Group 24.7% 70% 23.9% 25.2% 23.5% 22.1% 21.8% 21.9% 60+ 22.4% 60% 50-59
50% 40-49 29.7% 28.2% 28.8% 27.5% 26.9% 30-39 40% 27.5% 27.8% 28.9% 20-29 30% <20
20% 29.3% 27.9% 27.7% 28.1% 26.7% 26.3% 25.6% 22.2% 10%
0% 1.9% 1.5% 2.5% 2.0% 2.0% 1.0% 1.1% 0.9% Dec 2006 Dec 2008 Dec 2010 Dec 2012 Dec 2014 Dec 2016 Dec 2018 Dec 2020
House Fiscal Agency 34 January 2021 Field Operations: Parole and Probation
House Fiscal Agency 35 January 2021 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 December 26, 2020, the MDOC employed 1,145 active parole and probation agents responsible for supervising 45,259 offenders 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, criminal justice reinvestment programs, and the Residential Alternative to Prison program are programs available to offenders who meet certain eligibility requirements and serve as alternatives to incarceration
House Fiscal Agency 36 January 2021 Field Operations FY 2020-21 appropriation for Field Operations is $267,616,600. Field Operations includes parole and probation services and programs, community programs, and parole board operations.
Community Programs $35,023,600 13%
Other Parole/Probation Services/Programs $6,188,400 2%
Field Operations Parole Board $222,516,700 Operations 83% $3,887,900 2%
House Fiscal Agency 37 January 2021 Parole/Probation - Average Cost Per Offender Spending for parole and probation has increased by an average of a little over 3% annually since FY 2005-06. The cost per offender increased by an average of a little over 6% per year over this period. The use of electronic monitoring techniques significantly increased starting in 2010.
$222.0 $222.5 $213.4 $213.6 $209.0 $206.5 $208.6 $199.0 $199.8 $186.6 $180.9 $165.6 $154.6 $139.3 $141.3
$4,772 $3,901 $4,092 $3,556 $3,811 $3,220 $3,292 $3,523
Parole/Probation Spending (in millions) (in Spending Parole/Probation $3,048 $2,609 $2,008 $1,982 $2,063 $2,116 $2,267 Average Cost Per Offender
FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
*2020 data is as of December 15, 2020 House Fiscal Agency 38 January 2021 Offender Success: Programs and Services
House Fiscal Agency 39 January 2021 Offender Success Programs and Services o 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 $90.3 million appropriation in FY 2020-21, includes roughly $58.0 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
House Fiscal Agency 40 January 2021 Offender Success 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. In FY 2018-19, “prisoner reentry” was renamed “offender success”. $84.7
$78.5 $78.6 $74.6 $72.3 $70.6 $71.7 $70.7 $67.3 $67.8 $65.0
$57.0 $56.4
$46.4
$44.1 Funding (in millions) (in Funding
FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 *2020 data is as of December 15, 2020 House Fiscal Agency 41 January 2021 For more information about the Corrections budget:
HFA Resources http://www.house.mi.gov/hfa/Corrections.asp
Contact Information Robin R. Risko Associate Director [email protected] (517) 373-8080
House Fiscal Agency 42 January 2021