Presentation to the Cr/rn/na/Justice Reform Subcommittee Apr// 2014

Fiscal Overview of Criminal justice System

Char/es Sallee, Deputy Director Er/c Chenier, Fisca/Analyst Legislative Finance Committee

Overview
~ One out of every 44 New Mexican adults are involved in the criminal justice system ~ Victims, inmate families, the economy, taxpayers and society pay the price Summary ~ Criminal Justice Appropriations ~ NM Corrections Department Costs ~ Cost Per Offender/Inmate ~ Cost of Recidivism ~ Cost Saving Opportunities

New Mexico Results First

Lifetime total benefits of selected outcomes in New Mexico
Ayjrrg ~ nVIcn$sII~,,aw Avoiding one;case of child ab~use or neglect Preventing a low-4incorne~chiId from getting involvetrn ~ori~me Preventing a case of drug dependence or abuse
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$ 1* ~9 1 Zt $99435
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$84i,$40 $45,91 7

Criminal Justice Costs

Total Tangible Costs of Crime by Crime Type (thousands) Murder $ 1,278.4 Rape $ 41.2 Aggravated Assault $ 19.5 Robbery $ 21.4 Arson $ 16.4 Vehicle Theft $ 10.5 Stolen Property $ 8.0 Household Burglary $ 6.1 Embezzlement $ 5.5 Forgery $ 5.3 Fraud $ 5.0 Vandalism $ 4.8 Larceny/Theft $ 3.5
Source: National Institutes of Health

Total Intangible Costs of Crime by Crime Type (thousands) Murder $ 8,442.0 Rape $ 199.6 Aggravated Assault $ 95.0 Robbery $ 22.6 Arson $ 5.1 Vehicle Theft $ 0.3 Stolen Property $ Household Burglary $ 0.3 Embezzlement $ Forgery $ Fraud $ Vandalism $ tarceny/Theft $
-

Source: National Institutes of Health

Criminal Justice Costs

Proportion of General Fund Criminal Justice Spending and Public Safety vs the Judiciary in FY15 (in millions)

Criminal Justice FYi 5 Appropriations

Total criminal justice general fund appropriations increased $25.4 million, a 4.1 percent increase in FYi 5, including:
$7.2 million, or 4.7 percent for judicial agencies, $2.5 million, or 4.2 percent for district attorneys, $6.8 million, or 2.5 percent for the New Mexico Corrections Department, $7.2 million, or 7.4 percent for the Department of Public Safety, and $8.8 million for criminal justice employee salary increases.

FYi 5 NMCD Overall Budget

~ The majority of NMCDs appropriations are allocated to incarceration. ~ FYi S appropriations include an additional $2.8 million for projected inmate population increases. The Legislature provided a total six percent salary increase for correctional officers and probation and parole officers. ~ Roughly S percent of the budget is allocated to recidivism reduction programs.
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Corrections Department FYi 4 Operating Budget

~ The New Mexico Corrections Department:
Appropriations: $292.6 million (all funds) Opened an $8.2 million private prison sexoffender unit in Otero County Consolidated the Community Offender Management Program and the Community Corrections Program Budget assumed $4 million in fines to private prisons per NMCD request.

NMCD FY14_Operating_Budget
FY14 Corrections Operating Budget $292.6 Million
Community Offender Man ag ement (COM) 9% / Recidivism / Reduction Programs Within COM

/~

1% Community Corrections 1% Program Support 5%

~Co rrections md ustries 1%

NMCD FY14 Operating Budget

FY14 Inmate Management and Control Budget $24t7 Million
Springer Co rrectional Center
30/ ~

Western New Mexico Correctional ~ Facility 5%

Southern _____New Mexico Correctional Facility 9%

10

History of NMCD General Fund Appropriations

NMCD General Fund Appropriations (FYO4-FYI 5)
$350.0 $300.0

$250.0

$200.0

$150.0

$100.0

$50.0

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014 2015

11

Inmate Population
Total New Mexico Inmate Population (1980-2012)

J~,s of l\/1 a rc h 3 1 2 0 1 4 : ~ ~ ~ ~ 6,195 Males 667 Females Total Inmates 6,862 System Bed capacity 7,542 ~ Excess Bed capacity 680

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

1980

1990

2000

2010
Source: Bureau of Juatice Statiscics

12

Inmate Population & Costs

In mate Population to Felony Case Filings
23,500 7,000

Average Cost Per Inmate (19992013)

$160.0 $140.0
6,500

23,000

22,500

$120.0 $100.0

22,000 6,000 21,500

$80.0 $60.0
5,500

21,000

20,500

$40.0 $20.0
$-

20,000

5,000

19,500

c~
19,000 2008 2009 2010 2011 2012 2013 4,500

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Total

Private

~State Run
Source: NMCD

Court Felony Filings

~~lnmate Population

13

Cost Per Inmate

Differences in public and private prison costs are due mostly to:
Private prisons house mostly inexpensive low to medium security inmates Public prisons house many expensive higher security inmates, geriatric inmates, and inmates with severe mental illnesses
Corrections Department Average Cost Per Inmate I Client-Slot FY01 and FY13 Comparison
FY01 Average FY13 Average Cost Annual Cost Annual Cost Per Per Innate! Per Innate! Day Client-Slot Client-Slot (In $s) $ 33,595 $ 40,931 $ 11214 $ 24,480 $ 29,528 $ 80.90 22,787 29,242 80.11 $ 29,333 $ 35,631 $ 97.62

Institution I Rogram Total Departoant Operated Facilities Private Pilsons (Ferrales) RivatePi1son(t~hles) Institution Totals Coniii~nity Correclions Residential Treatnent Center Rograna (Fermles) Albuquerque CC Residential Treatnent Center Prograna (~vtules) Los Lunas Robation&Parole (Less ~P) Intensive Supervision Program

10,746 $

1,539 $ 30,135 $ 22,197 $ 2,678 $ 7,206 $ 2,984 $

4.22 82.56 60.81 7.34 19.74 8.17

$ $ 1,381 $ 4,785 $
1,890 $

$ $ $

Probation & ParolelCom m unity Corrections Totals

14

Recidivism Costs
Costs of offenders who recidivate are substantial and result in general expenses to taxpayers and specific expenses to victims. ~ Ninetyfive percent of incarcerated offenders will be released back into the community. About 50 percent of offenders will return to prison within five years.

15

Recidivism Costs
Citizens of New Mexico pay costs of arresting, prosecuting, housing, rehabilitating and supervising offenders many times over.
~ A t least 52% (1720) will return to prison ~ 4196(706) will return once ~ 2896(490) will return twice ~ 1696(275) will return three times ~ 1496(249) will return four or more times

FYi 1 3,440 inmates released

16

FY11 Release Cohort Estimated Prison Costs Over 1 5 Years =$360 million

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Results First provides a national database of evidence on program effectiveness. ~ Tie state adds and analyzes their own state-specific population and cost data.

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The n, ode! calculates long-term costs and be~iefIts for each program. The model ranks programs according to their return on investment. Policymakers consider the information during the budget process.
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Results First Exam pies

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What Works?
Estimated Impact of In-Prison Drug Treatment
50% 45%

Estimated Impact of Intensive Supervision With Treatment

40% 35% 30% E U)
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25% 20%

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a) 15% 10% 5% 0% 1 3 4 Year Post Release Estimated Baseline Recidivism 2 5 6

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10% 5% 0% 1 3 4 Year Post Release Estimated Baseline Recidivism 2 5 6

4~Projected Recidivism For Program Participants

~~Projected Recidivism For Program Participants

20

Results First: Current Program Cost Effectiveness

-14%

El ectro nic mo nitoil ng Education in Prison rug

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ours

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Vocational Ed ucation -10%

CommunityDrug Treatment

+ Mental Health Courts

Drug Treatment in Prison

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IntensiveSupervision With Treatment

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-8% ~ CognitiveBehaviorai Therapy Corrections Industries

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2% Perp etrato rTreatment

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6%~$0 Source: LFC Files

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$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

Cost per Participant 21

Results First What Works? What is Cost Beneficial?

-

Total Benefit to Cost Ratio By Program

Correctional Education in Prison (basic or post-... Cognitive Behavioral Programs in Prison Correctional Industries in Prison Vocational Education in Prison Electronic monitoring* Drug Treatment in Community* Employment Training/Job Assistance in Comm unity* Mental Health Courts Drug Treatment in Prison Drug Courts (adults) Intensive Supervision: Treatm ent* Intensive Supervision: Surveillance Domestic Violence Perpetrator Treatment.. ($5) $0 $5 Taxpayer Benefit to Cost Ratio $10
C Non-Taxpayer

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$15 Benefit to Cost Ratio

$20

$25

$30

22

FYi 5 Expansion of What Works

~ $3 million was appropriated to expand recidivism reduction programming including:
$1 .5 million for inmate education, estimated to reduce recidivism by almost 1 2 percent, $750 thousand for behavioral health services, such as cognitive behavioral therapy, estimated to reduce recidivism by seven percent, and $750 thousand for community-based employment training and education.

~ $950 thousand was appropriated to the AOC expanding drug courts

23

FYi 5 Expansion of What Works

FY14 Drug Court Funding, Participation, and Performance Number of Cost Per General Type Programs Capacity Participants Recidivism Client Per Day Fund Budget Adult 17 531 427 21.2% $ 18.91 $ 3,282.8 Juvenile 15 285 190 23.7% $ 31.69 $ 3,284.2 Family Dependency 3 63 44 15.5% $ 34.88 $ 381.5 DWI 7 387 353 6.4% $ 11.84 $ 1,183.1 Mental Health 5 307 193 22.9% $ 15.61 $ 770.6 Total 47 1,573 1,207 17.3% $ 19.84 $ 8,902.2

24

FYi 5 Expansion of What Works

Drug Court Funding and Participant Levels FYO9-FY14
1262 12000 1247 1225 1200 $11,022 11000 1100 10000 975 1000 0 9000
LL

1300

900 $8,492 $8,030 $7,574 7000 700 8O0

a,
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8000

0 ~ a,

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6000 FY09 FY10 FY11 FY12 FY13 FY14

600

25

Cost Saving Opportu nities: ln-4-iouse Parole

~ Roughly 290 inmates are currently placed on in house parole (IHP) ~ IHP is estimated to cost the state $10.3 million in FY14 ~ IHP is due to:
Administrative issues causing parole hearings to be canceled A lack of community resources for parolees, and Inmates not participating in the parole process Reasons for In-House Parole
140 120 100

80 60

40 20

WaitingforParole Certification

Waiting for Community Resources

Inmatesnot Participating

26

IHP and Residential Treatment Centers

~ Lacking community based resources, caseworkers:
Are unable to develop adequate parole plans, and Are unable to release inmates ontime ~ IHP costs $99.31 per inmate per day Dismas House costs $30 per day per resident IHP money could be reallocated to develop and expand less costly communitybased resources

27

Opportunities for Savings From Medicaid Expansion

Medicaid will now pay for inmates inpatient hospital care after the first 24 hours of care:
New Hampshire projects savings of $22 million from 2014- 2020 Ohio projects savings of $273 million from 2014 2022; Michigan expects to save $250 million Over 10 years; and, New Mexico, with a smaller inmate population, could save as much as $1 5$30 million over 10 years.

28

Opportunities for Savings From Medicaid Expansion Cont.

~ Many behavioral health services provided by the probation and parole division with 1 00% state funds will now be covered by Medicaid which could save as much as $2 million per year. ~ Wraparound behavioral health services such as inpatient rehab will not be covered.

29

Alternative Recidivism Reduction

~ The 1 St District Attorney is implementing a Law Enforcement Assisted Diversion (LEAD) program in Santa Fe County. The LEAD is a harm-reduction program run and funded by the district attorney, city and county governments focused on opiate addicts. The program is expected to serve up to 1 00 clients and will reduce the number of inmate days at the Santa Fe County jail by 11 ,SOO over the next three years.

30

Conclusion
Prison population and costs continue to rise ~ Costs manageable in current fiscal environment in aggregate (about 10% of budget) Very high cost per offender Significant repeat costs per offender Compromised public safety ~ Opportunities to reduce costs and increase safety through results focused policies and budgeting
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Performance Report Card Corrections Department Second Quarter, Fiscal Year 2014 Performance Overview: To address elevated vacancy rates for FY15, the Legislature provided a 3 percent salary increase for all state employees and appropriated an additional $2.7 million to provide another 3 percent salary increase for correctional and probation and parole officers. All recidivism-related measures were off target and should remain an area of concem. In the future, if recidivism rates do not decrease the state will continue growing
the inmate population, incarceration expenses will continue to increase, and public safety will decrease. A partial explanation for increases is that the department has been conducting proactive probation supervision initiatives in communities and is arresting large numbers of parole violators. For FY15, the Legislature appropriated $3 million to begin reducing the rate of recidivism and to reduce exponential growth in the inmate population. For the remainder of the year, the department should continue to balance public safety with resource constraints by focusing on offenders that pose the greatest risks to the community. Inmate Management Budget: FTE: FY12 FY13 FY14 Q1 Q2 Q3 Rating and Control $241,764.8 1,870 Actual Actual Target
1 2 ~ ~ ~ 6

Percent of prisoners re-incarcerated within 36 months* Number of inmate on inmate assaults with senous mjury (cumulative)* Number of inmate on staff assaults with senous injury (cumulative) * Percent of inmates testing positive for drug use or refissmg to be tested in random monthly drug tests* Percent of female offenders successfully released in accordance with theft scheduled release dates* Percent of male offenders successfully released in accordance with theft scheduled release dates* Percent of sex offenders re-incarcerated within thirty-six months Recidivism rate of the success for offenders after release program by thirty-six months* Recidivism rate of offenders due to new charges or pending charges Recidivism rate of offenders due to technical parole violations*

47% 21

47% 16

44% 18 4

48% 3 2 1.8% 68% 83% 37% 34% 26% 20%

48%
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3 1.8% 63% 78% 37% 36% 26% 21%

1.7% 78% 82% 36% 37% 23%

2.2% 77% 81% 28% 28% 24%

<=2% 90% 90% 30% 32% 23% 20%

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8 ~ 10

Program Rating Y V Comments: The departments performance on inmate violence was mixed with inmate-on-staff assaults above target but inmate-on-inmate assaults below targeted levels. The department continues not to release inmates on time, which partially explains the recent surge in population at the New Mexico Womens Correctional Facility (NMWCF), which experienced a 3.6 percent population increase since the end of FY13. Additionally, all recidivism-related measures are above target, adding to the overall inmate population increase. The department stated that the uptick in recidivism is due to increased security threat intelligence unit offender apprehension efforts. The population of male offenders has increased by 3.3 percent yearover-year. Additionally, the percent of sex offenders recidivating was 11 percent above the FY13 rate and is a cause for concern, especially if the rate remains elevated for the rest of the year. Surges in the inmate population will cause department costs to rise dramatically. The department should continue focusing its offender apprehension efforts on offenders that pose the greatest risk to the community. FY14 Community Offender Budget: FTE: FY12 FY13 Management $33,218.5 392 Actual Actual
________ ________ ______

11

Average standard caseload per probation and parole officer

1 14

108

Program Rating Comments: Average standard caseload exceeds targeted levels, but the Legislature appropriated enough for an average percent salary increase which should start helping to reduce the 20 percent vacancy rate among probation and parole officers. Eventually, if recruitment and retention-related issues are managed effectively the department should begin slowly progressing towards making caseloads more manageable for parole officers. With the expansion of Medicaid eligibility in FY14, the COM program should leverage Medicaid to ensure parolees receive adequate services when released. Funding

tie

34

Performance Report Card Corrections Department Second Quarter, Fiscal Year 2014
should also be reprioritized to focus on high-risk offenders. Program Support
12 13

Budget: $14,274.5

FTE: 155

FY12 Actual
13.4% 10.6%

FY13 Actual
14.7% 8.1%

FY14 Target
12.0% 11.0%

Qi
3.4% 1.0%

Q2
2.8% 3.1%

Q3

Rating

Percenttumoverofprobationandparoleofficers Percent turnover of coffectional officers in public facilities

Program Rating Comments: Program support is performing well and should continue maintaining low turnover rates.
*

Denotes House Bill 2 measure

35