Professional Documents
Culture Documents
Chief Author:
Commitee:
Date Completed:
Agency:
Tim Miller
Public Safety and Crime Prevention Policy and Finance
03/31/2016
Corrections Dept
SPACE
SPACE
Yes
Expenditures
YES
X
No
Fee/Departmental
Earnings
NO
X
Tax Revenue
NO
X
Information Technology
YES
X
YES
X
This table shows direct impact to state government only. Local government impact. if any, is discussed in the narrative.
Reductions shown in the parentheses.
Biennium
Biennium
FY2015
FY2016
FY2017
FY2018
FY2019
21,873
19,950
23,028
Total
Biennial Total
21,873
21,873
19,950
23,028
42,978
Dollars in Thousands
SpaceGeneral Fund
FY2015
Total
Biennium
FY2016
FY2017
180
180
Biennium
FY2018
FY2019
204
228
204
Page 1 of 4
228
Biennium
FY2016
FY2017
FY2018
FY2019
21,873
19,950
23,028
Total
Biennial Total
21,873
21,873
19,950
23,028
42,978
21,873
19,950
SpaceGeneral Fund
Biennium
FY2015
Dollars in Thousands
Total
Biennial Total
Space
Space
-
Total
Biennial Total
23,028
21,873
19,950
23,028
21,873
42,978
Space
Space
Space
-
Bill Description
The proposed legislation would require the commissioner of the Department of Corrections (DOC) to enter into a contract
to lease and operate an existing prison facility with a capacity of at least 1,500 beds located in Appleton, Minnesota, in
order to address bed capacity shortfalls.
Assumptions
It is assumed this bill would require the DOC to lease and operate Prairie Correctional Facility (PCF), located in Appleton,
Minnesota, to address bed capacity shortfalls.
PCF has a bed capacity of 1,660 beds.
More time would be needed to conduct a thorough analysis of departmental needs and the space, condition and
configuration of PCF; and to develop a more accurate spending pattern and budget.
It is assumed the DOC would lease and operate PCF as a level 3 facility.
The adult operational per diem calculated by the DOC includes costs for three components: prison operations, health
services, and behavioral health.
The estimate for the prison operations component is based on the average per diem for that component for the three
current level 3 facilities (MCFs-Faribault, Lino Lakes and Moose Lake), as adjusted for management services, physical
plant and utilities. Estimates for management services are based on facilities of a similar size; utilities are based on similar
costs at the MCF-Rush City since it's physical plant is most comparable to that of PCF. It's assumed most physical plant
costs would be built into a negotiated lease price, so for the purposes of this fiscal note the estimated physical plant costs
are based on a percentage of the physical plant budget at the MCF-Rush City (20% - 30%).
The estimates for the health services and behavioral health components of the adult operational per diem are based on
the department-wide adult average per diem for those components.
The estimated adult operational per diem to operate PCF, excluding lease costs, would be $90.73 for 550 offenders;
$82.81 for 1,100 offenders; and $80.78 for 1,650 offenders.
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There would be additional costs for centralized services that are not part of a correctional facility's operating budget,
including offender transportation, office of special investigations, offender records, staff training, information technology,
legal services, human resources and financial services. Those costs are estimated based on a per diem cost of $10.33, as
determined by the most recent offender population forecast adjustment calculation.
The estimated annual cost to operate the PCF, excluding lease costs, would be $20.288 million for 550 offenders; $37.397
million for 1,100 offenders; and $54.874 million for 1,650 offenders.
It is unknown how much an annual lease cost would be. For the purposes of this fiscal note an annual lease cost of $6
million is assumed, which would increase the total annual cost for each scenario.
Opening a facility that has not been operational for several years and preparing it for immediate occupancy of
approximately 500 offenders would require a significant investment in startup costs, including but not limited to:
infrastructure needs related to information technology, security systems, cameras, communication equipment, etc.;
repair and betterment projects, and space modifications that may not be negotiated into a lease agreement;
clothing, mattresses, linens, storage bins and other furnishings and supplies for offenders;
telephones, kiosks and other equipment for use by offenders in living units and common areas;
housekeeping/maintenance supplies and paper products;
medical supplies, equipment and furniture;
food service supplies, equipment and furniture;
staff uniforms, radios and security equipment;
perimeter and fleet vehicles;
office supplies, equipment and furniture.
The amount needed for startup costs is difficult to determine without further review. A conservative estimate of $5 million is
assumed for the purposes of this fiscal note, and would be needed in the first year.
Total costs would be offset by savings the DOC is currently paying to house offenders in county jails. The year-to-date
average of the number of offenders in county jails for FY2016 is 469. Assuming a rental per diem of $55, savings are
estimated to be approximately $9.415 million.
Based on the most recent population projections, and based on current law, it is assumed the DOC would operate the PCF
at a capacity of 550 offenders in the first year, and the capacity would increase each subsequent year. For the purposes of
this fiscal note an increase of 100 offenders per year is assumed, with estimated costs calculated in the same manner as
identified above.
If the DOC were to lease and operate PCF, offenders may be relocated to alleviate security concerns at other correctional
facilities. That cost is not included in the estimates provided.
A greater emphasis on behavioral health services (i.e. chemical dependency treatment, sex offender treatement) would
increase the total cost.
Without a comprehensive staffing analysis, a staffing pattern cannot be completed with total accuracy. For the purposes of
this fiscal note an increase of 180 full-time equivalent positions (FTEs) is estimated for 550 offenders, 300 FTEs for 1,100
offenders, and 420 FTEs for 1,650 offenders.
An effective date is not specified, but it is assumed this bill would be effective July 1, 2016.
Page 3 of 4
Estimated Annual Costs for Prison Beds by Capacity - Prairie Correctional Facility Lease
($ in 000s)
Capacity
Prison Costs
Centralized Costs
SUBTOTAL
Add: Lease Costs
550 beds
1,100 beds
1,650 beds
18,214
33,249
48,653
2,074
4,148
6,221
20,288
37,397
54,874
6,000
6,000
6,000
GROSS Expenditures
26,288
43,397
60,874
(9,415)
(9,415)
(9,415)
NET Costs
16,873
33,982
51,459
Estimated Costs for Prison Beds by Fiscal Year - Prairie Correctional Facility Lease
($ in 000s)
Fiscal Year
2016
2017
2018
550
650
2019
750
20,288
23,365
26,443
6,000
6,000
6,000
5,000
(9,415)
(9,415)
(9,415)
21,873
19,950
23,028
FTEs
180.0
204.0
228.0
Email: Chris.Dodge@state.mn.us
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