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The Economic Cost of Methamphetamine Use in Montana

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The Economic Cost of Methamphetamine Use in Montana REPORT The Economic Cost of Methamphetamine Use in Montana February 2009 A Report Prepared for the Office of the Attorney General MONTANA DEPARTMENT OF JUSTICE Contents Page Introduction 1 Executive Summary 3 Section I. Crime and Criminal Justice 5 Section II. Treatment Costs 17 Section III. Child and Family Services 23 Section IV. Healthcare 29 Section V. Productivity 35 Section VI. Meth Lab Cleanup Costs 41 “The Economic Cost of Methamphetamine Use in Montana” was prepared by the Montana Department of Justice and the Montana Meth Project. The report is based on an analysis of a wide range of information from state and local government agencies. It relies heavily on the methods and findings of the RAND Drug Policy Research Center report, “The Economic Cost of Methamphetamine Use in the United States, 2005.” The research for the latter was funded by the Meth Project Foundation and the National Institute on Drug Abuse. The RAND Drug Policy Research Center’s work is supported by the Ford Foundation, other foundations, government agencies, corporations and individuals. Introduction Methamphetamine Addiction and Availability Methamphetamine use is associated with a host of negative physical and psychological consequences contributing to societal problems, fracturing family units and overburdening law enforcement and social services. Methamphetamine is a powerfully addictive stimulant that dramatically affects the central nervous system. It is a white or off-white, odorless, bitter-tasting powder or a hard, crystal-like substance. It is either taken orally, intra-nasally (snorting the powder), by needle injection or smoking. Methamphetamine releases high levels of the neurotransmitter dopamine, which stimulates brain cells, enhancing mood and body movement and greatly increasing the experience of pleasure. It also appears to have a neurotoxic effect, damaging the area of the brain associated with emotion and memory. Users may become addicted quickly and use it with increasing frequency and in increasing dosages. With chronic use, tolerance for methamphetamine can develop. Long-term users may experience extreme weight loss, severe dental problems, anxiety, confusion, insomnia, mood disturbances and aggression. Chronic abuse can lead to psychotic behavior, characterized by intense paranoia, visual and auditory hallucinations, and out-of-control rages that can be coupled with extremely violent behavior. According to the 2008 National Drug Threat Assessment, the domestic production of methamphetamine has decreased dramatically since 2004. That decrease is offset by the increasing availability of high-purity crystal ice methamphetamine trafficked by Mexican and Asian networks, and by large-scale production in Canada.1 Ice methamphetamine is a more pure form of meth that is usually smoked. Smoking meth results in a more rapid onset of addiction to the drug than does snorting or ingesting. National RAND Cost Study In February 2009, the RAND Drug Policy Research Center published “The Economic Cost of Methamphetamine Use in the United States, 2005.” The research was funded by the Meth Project Foundation and the National Institute on Drug Abuse. The RAND Drug Policy Research Center’s work is supported by the Ford Foundation, other foundations, government agencies, corporations and individuals. The RAND study aimed to estimate the annual economic burden of methamphetamine in the United States. The report estimated that the quantifiable cost in 2005 was roughly $23.4 billion. While there is a substantial range of uncertainty in that estimate, it is based on an analysis of the costs of drug treatment, other health care costs, lost productivity, crime, child endangerment and meth production. While these areas do not cover all of the costs associated with meth addiction, the RAND Report 1 National Drug Intelligence Center. (2008). National Drug Threat Assessment (2007-Q0317-003). Washington, DC: U.S. Government Printing Office. 1 believed they represent the components for which “reasonably good data are available and for which a preliminary national estimate could be built.” Meth Costs in Montana Like the national cost report, this Montana report attempts to place a dollar value on the economic burden methamphetamine places on the state. Given the broad scope of this undertaking and the availability of reliable information, the Montana report focused on estimating the costs in five areas used by the RAND report: 1. crimes attributable to meth use as well as criminal justice costs associated with enforcing meth laws; 2. meth treatment that is delivered in general, short-stay hospitals and the specialty treatment sector; 3. meth-related child endangerment; 4. health services used in the treatment of medical conditions attributed to meth use; and 5. lost productivity due to absenteeism, unemployment and premature death. Where specific costs were known, such as the actual cost of meth addiction treatment and lab cleanup, it was possible to calculate exact dollar amounts. In other areas, such as the costs of investigating and prosecuting meth crimes or the cost of lost productivity to Montana businesses that employ meth addicts, estimates were based on the 2005 National Study on Drug Use and Health (NSDUH) issued by the U.S. Public Health Service. This survey provides yearly national and state-level estimates of drug usage, including the prevalence of meth abuse in the general population. The Montana report includes data from a number of years. Where possible, 2005 and 2007 data were used to indicate trends. In some instances, such as estimating the cost of placing children in out- of-home care because of their parents' drug addiction, more recent data was used. In September 2006, the Child and Family Services Division began collecting statistics on the type of drug involved in drug-related out-of-home placements, information that allowed more accurate cost estimates for subsequent years. Acknowledgments A number of agencies provided the program and financial information on which this report is based, especially: • Montana Board of Crime Control • Department of Public Health and Human Services, Addictive & Mental Disorders Division, Chemical Dependency Bureau • Department of Public Health and Human Services, Child and Family Services Division • Department of Corrections • Department of Justice, Division of Criminal Investigation, Narcotics Bureau 2 Executive Summary Costs associated with the methamphetamine problem in Montana, which peaked at more than $300 million in 2005, have been decreasing steadily over the past three years. However, at an estimated cost of slightly more than $200 million in 2008, meth continues to place a significant economic burden on our state. Methamphetamine-related crime cost the state of Montana an estimated $80 million in 2008. While the expense of putting a meth addict in prison can be readily calculated, it is much more difficult to determine the costs incurred at every level of our criminal justice system. Even so, meth-related crime has a budget impact on a wide range of government agencies and the public costs considered in this report fall into five categories: • all drug offenses reported by local law enforcement agencies where methamphetamine was seized in 2005 and 2007; • county jails and sheriffs' departments in 2007; • state criminal investigations and forensic science divisions; • state and local drug task forces; and • correctional cost for offenders with meth-related crimes. It’s important to note that these components do not encompass all potential costs. This report does not consider the effect of methamphetamine use on every type of offense or community corrections violation. Nor does it consider all the costs associated with meth-related convictions and re-arrests. Even Montana’s economy is not immune to meth’s negative impacts. Each year, work-related productivity losses associated with meth use costs Montana nearly $65 million. To estimate the cost of meth use on work productivity in Montana, the report utilizes an approach that focuses on four areas: • lost earnings associated with reduced employment; • absenteeism from work; • lost productivity associated with incarceration; and • other employer expenses such as the costs of drug testing and the number of sick days meth users take. Montana’s methamphetamine problem is also taking a major toll on our healthcare system. Meth addiction is a chronic, relapsing disease, characterized by compulsive drug-seeking and drug use, which is accompanied by functional and molecular changes in the brain and numerous health and behavioral problems. The cumulative effect of these meth-related health problems has proven costly to our state. The health- related expenses associated with methamphetamine use and addiction cost Montana an estimated $48.8 million in 2008 alone. These costs include meth-involved inpatient stays, suicide attempts, emergency room visits and health administration. This report also uses the RAND Report’s model to measure the intangible costs associated with methamphetamine addiction in Montana, namely, reduced quality of life. 3 In addition to the expenses it places upon our economy, criminal justice system, and health care systems, Montana spends significant resources on meth-related chemical dependency treatment. The unique problems surrounding meth addiction often result in difficulty completing treatment and an increase in the length of stay for individuals in treatment. Consequently, it cost the state of Montana nearly $6 million in
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