Cost Benefit Analysis of Maine Prisons Investment

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1 Cost Benefit Analysis of Maine Prisons Investment Policy Analysis & Program Evaluation Professor: Devon Lynch By: Stephanie Rebelo Yolanda Dennis Jennifer Chaves Courtney Thraen 1

2 Similar to many other states, Maine operates two separate prison systems, one institution for adults and one for institution for juvenile offenders. As of today, Maine has six institutions for adult offenders and two institutions for juvenile offenders. Today, the adult system consists of the six following facilities: Central Maine Pre-Release Center Charleston Correctional Facility Downeast Correctional Facility Maine Correctional Center Maine State Prison Women s Re-entry Center The Central Maine Pre-Release Center was opened in Hallowell in 1979, on the grounds of Stevens School complex, which was under the jurisdiction of the Department of Mental Health and Corrections. Prisoners in this facility participate in public restitution work crews and a work release program. The public restitution program offered at this facility has provided approximately 22,000 man hours of free labor annually to citizens of the greater Kennebec County region. This facility is also the site for phase 2 of the Department s residential substance abuse treatment. The Central Maine Pre-Release Center has also developed a crime prevention program which has been presented in public schools. The prisoners message to all students is a simple one: learn to make better choices by being made aware of the consequences of our poor choices. The Charleston Correctional Facility is located on the site of the former Charleston Air Force Station. When this facility was opened it had about 30 prisoners under the administrative control of the Maine Correctional Center in Between 1981 and 1985, a second dorm was opened which brought the facility prisoner count to 62, and in 1985, a third dorm was built which increased prisoner count to 93 prisoners. In 2001, there was a major construction of the facility and it was downsized. Due to this, the female population was moved to new housing at the Maine Correctional Center in Windham, and the male population was brought down to 75. In 2007, the facility opened a second, 55 bed-dorm in order to help with the increasing number of prisoners entering the system. Today the facility holds about 145 prisoners. The Downeast Correctional Facility is located at the former Bucks Harbor Air Force Station and was established by the Legislature in September of This facility is a medium/minimum security and has a prisoner count of 148. This facility also holds many different types of programs such as: 2

3 Educational Programs: Geared for a high school diploma and/or G.E.D Vocational Programs: Staffed by degreed instructors in fields such as Upholstery, Welding, and Building Trades. Community Restitution Program: Provides other State Agencies, Local Municipalities, and non-profit organizations with assistance in maintaining their facilities. Treatment Program: Consists of psychological treatment with counselors in Substance Abuse Education, Relapse Prevention and Individual Substance Counseling, and Crisis Intervention groups. Maine State Prison is located in Warren, Maine and their mission is to provide safe, secure and humane correctional environment for the incarcerated offender. This state prison was opened in 1824, to serve as a penitentiary where convicts were sentenced to hard labor for life for any terms of time not less than one year. This prison has always been a maximum security facility for adult felons. The Women s Reentry Center was opened in November 2007 by the Maine Department of Corrections and is operated through contract by volunteers of America Northern New England. The Women s Reentry Center was designed to give women the skills and experience they need to successfully live as positive citizens and employees after they leave from the state correctional facilities and into their home communities. There is an emphasis placed on reducing risks of re-offending and increasing their positive outcomes. Such positive outcomes include: Employed in a high growth/high demand career. Reunifying with families Using effective parenting skills Remaining drug and alcohol free Being an active citizens Being able to make healthy choices for their lives. As of today, Maine has two institutions for juvenile offenders; Long Creek Youth Development Center and Mountain View Youth Development Center. Long Creek Youth Development Center houses both male and female offenders. Long Creek was originally called the Boys Training Center, and was established in 1853 by an Act of the Legislature. Long Creek continues to redefine many of its programs functions to enable a total multi-disciplined team approach in working with those committed and held within the facility. 3

4 The Mountain View Youth Development Center is located in Charleston, Maine and is a 133-bed; secure juvenile facility that detains male and female juvenile offenders and male committed offenders from 11 to 21 years of age, with most being years of age. Mountain View was open on January 5, 1998, with a 40-bed capacity. In 2002, the program and services were expanded and now can accommodate 133 beds, which include detention, shock sentences, and long-term committed resident s sentenced to indeterminate periods of confinement. The following is an analysis which demonstrates that closing Maine State Prison and the correctional facilities in Bucks Harbor, Hallowell, and Bangor is justified on economic grounds. In addition, repairing and rehabilitating the Maine Youth Center and creating another youth center out of the existing facility in Charleston improve quality of services to juveniles and are justified economically. Lastly, closing the juvenile and adult systems is justified according to the analysis and figures below. 4

5 Maine Prison Cost Benefit Analysis ****All figures in thousands of dollars, per capita and per inmate costs are real **** All per capita costs are applied to the 1998 Maine adult population of 1,274,923. Maine s Current System: Currently in 1998, Maine s six-prison system (the pre-release center is Hallowell is slated for closure, so that center will not affect the current system analysis) may be adjusted to reflect greater economic efficiency. Additionally, Maine s prison system does not incorporate an opportunity for probation or even parole. Furthermore, the prisoners are sentenced to a fixed term, not a range, as most states apply. Thus, Maine faced an expensive, overcrowded prison system in The table below depicts the projected operating costs combined with required maintenance and repair costs for the planned six-prison system. Current Planned System Capital Costs Only Capital Costs w/ Repair and Maintenance Warren $47,200 $47,200 Windham 6,400 21,540 Thomaston 4,800 31,000 Charleston 950 6,225 Bucks Harbor 630 2,700 Bangor Total $60,380 $109,065 Current Operating Costs Warren $17,030 Windham 11,400 Thomaston 12,760 Charleston 3,480 Bucks Harbor 3,340 Bangor 670 Total $48,680 Total Operating and Capital, Repair and Maintenance Costs $157,745 5

6 Analysis of this data will consider factors such as per capita cost, per prisoner cost, prison population and overall Maine population. Per the U.S. Census Bureau, in 1998, Maine s population was 1,274,923. Using the combined operating, capital, and projected repair and maintenance costs above, then the per capita cost is $ Furthermore, the prison population is 1998 was 1,523 prisoners, per the Maine Crime DataBook. Based on the figures here, each inmate s cost or worth is $103,575. The per capita cost and per inmate cost are baseline comparison numbers to compare future changes. Thus, several options are available to streamline and create a greater social net benefit for the Maine prison system. The first proposal is to close the Maine State Prison along with the correctional facilities at Bucks Harbor, Hallowell, and Bangor, which will be replaced by two prisons with improved services in Warren and Windham. Capital, Repair and Maintenance Costs for Warren and Windham: Capital Costs w/ Repair, Maintenance and Expansion Warren $111,100 Windham 62,540 Operating Costs with Improved Services at Warren and Windham: Proposed Operating Costs Warren $23,774 Windham 19,962 Total Capital, Maintenance and Operating and Expansion Warren: 134,874 Total Capital, Maintenance and Operating and Expansion Windham: 82,502 Total Capital, Maintenance, and Operating Maine: $217,376 As before, the proposed total operating cost with improved services, combined with the capital, repair and maintenance costs will be applied to calculate per capita cost and per inmate cost. Using the 1998 state population of 1,274,923 and prison population of 1523, per capita cost is $ and each inmate is worth $142,728. In comparison to the current situation, the per capita cost here is increased by $46.77 and individual inmate cost is increased by $39,153. Looking solely at cost, this plan increases cost to the state and its taxpayers. 6

7 However, the figures above reflect expansion costs, which is not a permanent, annual cost. Over time, the removed expansion costs of $41m and $63.9m of Windham and Warren, respectively, will change economics of the Maine Prison system. When expansion costs are complete and removed from the equation, then: Total Capital, Maintenance and Operating Warren: $70,974 Total Capital, Maintenance and Operating Windham: 41,502 Total Capital, Maintenance and Operating Maine: 112,476 Thus, the per capita cost with expansion removed is $88.22, each prisoner s cost is $73,852. Comparing these figures to the current baseline case is more expensive than the proposed two-prison system once expansion costs are removed. This analysis will assume that the expansion project will take a longer than shorter time period to pay off, which ensures the taxpayers are not slammed with a larger bill. With the long-term analysis that does not include expansion cost, and then this reduces per capita cost by $35.51 and reduces each inmate s cost by $29,723. The second option could include repairing the Maine Youth Center in South Portland while converting the Charleston facility into a Northern Youth Center. Per the Maine Crime DataBook, in 1998, there were 152 juveniles per 100,000 juveniles in Maine. Per the Census Bureau, there were 1,259,127 juveniles in Maine in Thus, in 1998 there were 1,914 juvenile inmates in Maine. Below, the projected costs for the new facility are depicted. Additionally, the operating and capital costs are depicted for transforming the Charleston Facility into a juvenile center, including projected slated repairs. In the table below, capital is also calculated for two years. Maine Youth Center Proposals CURRENT PROPOSED MYC (Portland) Capital* $20,000 *** $25,300 Operating** 15,130 9,606 7

8 North MYC Capital* $25,600 Operating** 9,204 * 2 yrs ** Annual Slated Charleston Repair 6,225 *** Required health and safety upgrades Total 35,130 75,935 Based on the table above, we can calculate per capita costs for Maine residents and cost of each juvenile s cost. Under the current system, for one year, the total is $25,130,000 (capital above is calculated for two years). Thus, the per capita cost of the current juvenile facility is $ Annually, each juvenile inmate incurs a cost of $13,130. These numbers are the current baseline, which can be used to compare future projects. Thus, the proposal for two centers would also cut the capital cost in half to determine annual value. Therefore, Portland Youth Facility has a capital cost of $12,650,000, and the North Maine Youth facility incur s an annual capital cost of $12,800,000. The overall annual cost of the two centers is $50,485,000. Thus, the annual per capita cost of both juvenile facilities above is $ Additionally, each juvenile inmate incurs a cost of $26,377. It is foreseeable that the two facilities would incur an expensive equal to twice the current system. However, for the second option of the two centers, if the Charleston facility repair expense of $6,225 is deducted from the equation, the ending result would still be well higher per capita and per inmate cost. No data was revealed if there was an overcrowding problem at the current Portland facility. 8

9 Finally, we must consider if the combined adult and juvenile program investments compared to the overall current system. First, the overall baseline for both adult and juvenile systems equal a total annual cost of $182,875,000 ($157,745,000 for the current adult system and $25,130,000 for the current juvenile facility). Using the overall cost, then per capita cost is $ and the individual cost for adult and juvenile inmates is $53,207. These figures will be compared against future investments. Therefore, when combining the streamlined prison system using only Windham and Warren facilities (including expansion costs), along with the two juvenile facilities, the total cost is $267,861,000 (adult $217,376,000 and juvenile $50,485,000). Per capita, the cost is $210. Furthermore, the cost per adult and juvenile inmates is $77,935. Yet, if expansion costs from Windham and Warren are excluded, which is applicable in the long-term, and then the total cost is $162,961,000 (adult $112,476,000 and juvenile $50,485,000). Using this total cost, then the per capita cost is $127, and the cost per adult and juvenile inmates is $47,414. In this case, the per capita cost is reduced by $16.44 and the individual adult and juvenile inmate cost is reduced by $5,793. It is clear the juvenile facility does not appear economically advantageous due to the double price resulting from an increase from one to two juvenile facilities. On the same note, the adult system of two prisons is not economically efficient due to the $104.9 million in expansion costs. However, the entire project is economically efficient when combining adult and juvenile project proposals and disregarding the initial brunt of the expansion costs. Parole, Probation and Probability Another way to determine a means of economic efficiency is to evaluate the cost of crime for Maine s residents. For adult index crimes, 30 percent of the cost of crime is incurred by 26 murders in The other 70 percent of crimes are incurred by forcible rape, burglary, and lesser crimes that may or may not be eligible for parole, probation or other rehabilitation mechanisms that decrease recidivism. The table below depicts crimes, their specific cost and overall cost percentage for Maine in 1998, which was taken from the 2008 Maine Crime DataBook. 9

10 Year 1998 ratio per 100K COST Sentence Type % of Overall Crime Cost Forcible Rape = $ Fixed or Parole 54% Murder =84.6m Fixed 30% Robbery = Parole/Probation 1% Aggravated Assault = Probation 4% Property Crime Summary Burglary = Probation 5% Larceny = Probation 4% Motor Vehicle Theft = Probation 0% Arson = Probation 3% TOTAL CRIMES $3,179,219, Probation In our study, Maine applies fixed sentences to incarcerated inmates, including no option for parole or changed sentence. However, using the data below from the Government Accountability Office s Cost Benefit Analysis of Cost-Savings to Incarceration, published in June 1993, Arizona probation and incarceration per capita data per its population was applied via ratio to Maine s population to determine per capita cost of incarceration versus probation or parole. Using comparison data from 1985 Pima County, AZ probation figures along with 1990 Fort Grant County, AZ incarceration figures, we can determine Maine s per capita probation and per capita incarceration cost. Additionally, we can use the Consumer Price Index to inflate prices to the 1998 standard. Population Pima Cty '85 $4.96 per capita probation Fort Grant ' per capita incarceration $2,222,871, apply parole and probation (70%) ME 98 per capita $ ,347, no parole (incarceration) (30%) ME 98 per capita Using the per capita ratio data (solely), we can make a probability equation for per capita cost..3(281.62) +.7(6.82) = $89.26 per capita. Moreover, to incorporate the crime cost data provided, we see that the incarceration cost of $956,347,826 cannot be adjusted to reflect savings from parole. The other 70 10

11 percent of crime costs can be reduced to reflect savings from parole and probation. Without adjusting for parole or probation, the per capita cost overall is $2, To adjust for parole and probation and using our per capita probability equation, the overall cost of crime should be $113,799,627 for Maine. If we subtract fixed incarceration costs, (.3 x $ x 1,274,923 pop = 107,713,145), then the cost of non-incarceration crimes should total $6,100,000 (rounded) to equate to $6.86 per capita for the 1998 Maine population. How do the probabilities using probation and parole compare to the actual crime data? Overall crime cost using parole and probation is $3,065,419,742 less than actual. Moreover, the per capita cost of $89.26 is $2,404 less than actual. Using probation and parole, the non-incarceration crimes are $2,216,771,543 less than actual of $2,222,871,543. Using probation and parole provides you a 99 percent reduction cost in non-incarceration crimes, demonstrating a huge economic gain. Furthermore, we can apply the same crime probability logic to juvenile index crimes. The equation above which results in $89.26 per capita is still applicable to adjust the juvenile index crime data below for reductions from parole and probation, which bring social benefit from reduced sentences and reduced recidivism. Juvenile Actual, not Forecast Index Crimes 1998 Crime Qty ratio per 100K % Murder 1 2.3=84.6m $ % Rape = % Robbery = % Aggravated Assault = % Property Crimes 4,085 (all) Burglary = % Larceny-Theft = % Motor Vehicle Theft = % Arson 45 45= % Total Index ,510, In the table above, index crimes that aren t normally up for parole or probation are murder crimes, which account for nearly 30 percent of the cost. The murder cost here is $36,782,609. If we subtract the fixed murder cost, we are left with $93,727,790 of crimes that can be reduced by probation or parole. 11

12 $93,727, apply parole and probation (70%) ME 98 per capita $ ,782, no parole (incarceration) (30%) ME 98 per capita Again, using our per capita probability equation, the overall cost of crime should be $113,799,627 for Maine. Also, If we subtract the fixed incarceration costs, (.3 x $ x 1,274,923 pop = 107,713,145), then the cost of non-incarceration crimes should total $6,100,000 (rounded) to equate to $6.86 per capita for the 1998 Maine population. As visible, even here, the actual probation/parole crimes are well over that cost. Even though the ACTUAL incarceration cost of $93.7 million is actually LESS than the possibility equation amount of $107.7 million, the leftover ACTUAL probability/parole cost of $93.7 million is well over the probability equation amount of $6.1 million. So, to compare, the overall juvenile crime cost per capita is actually $102.37, which is $13.11 more than the estimated per capita of $89.26, which reflects savings from probation, parole and increased recidivism. Finally, to combine the actual per capita cost for both adult and juvenile index crimes from 1998 Maine data, the amounts are $ (juvenile crime) and $2, (adult crime), which total $ per capita. In this study, the probation reduction equation was used for both adult and juvenile index crimes. The equation works for both adult and juvenile systems, because it is based on population, although the equation is more specifically targeted for the adult index crimes. Either way, even if the per capita of adult crimes is doubled ($89.26 x 2 = $178.52) because the probability equation was used twice, the amount is still well below the ACTUAL combined per capita cost of $ Based on the above analysis, one of the key elements in Maine s inmate population and cost structure is the rate of recidivism. Recidivism is likely to incur many future costs which makes it a very important part of the analysis. Its long term costs are priority for policy makers. Nearly 1,000 people are released from prison in Maine each year and many are at high-risk to re-offend. Most have very limited employment skills along with histories of substance abuse and mental issues as well. These problems along with enormous costs make it very important to rethink how and when we should incarcerate. Effects of Implementing Probation and Parole into the Maine Budget In 1998, the Maine Gross Domestic Project was $3.93 billion. Thus, the ACTUAL cost of adult crime in Maine equaled 84 % of Maine s GDP. Furthermore, the ACTUAL cost of Maine crime in 1998 was 80% of the Maine s $4.14 billion budget. In 1998, Maine s average per capita income was $23,529, making it the thirty-seventh richest state. Yet, the actual per capita cost of crime was 11% of per capita income. Yet, in Maine s state budget, prison expenses only accounted for six percent of the overall budget. 12

13 Next, if we combine the ACTUAL cost of both adult and juvenile crimes in 1998, then that sum is $3.31 million, which is 84 % Maine s GDP of $3.93 billion. Combined adult and juvenile crimes costs are also 80% of Maine s 1998 state budget of $4.14 billion. Finally, the combined sum of adult and juvenile crimes account for 11 % of the average per capita income. However, it s important to understand how the PROJECTED cost of crime in Maine changes when parole and probation options are implemented, per the calculations addressed earlier in this study. First, when parole and probation options are implemented, the total cost of crime for adults ($113,799,627) and juveniles ($113,799,627) equals $227,599,254. Thus, the per capita cost of crime would now be $89.26 for adult crimes and $89.26 for juvenile crimes to equal $ per Maine adult resident. In this case, the overall cost of adult and juvenile crimes would only equal 5.8% of Maine s GDP, 5.6% of Maine s state budget and 1% of Maine s per capita income. 13

14 Works Cited Beck, Allen J U.S. Department of Justice Bureau of Justice Statistics: Prisoners in Maine Department of Labor Maine Labor Market Digest: Aug Maine State Legislature, Office of Fiscal and Program Review Maine Statistical Analysis Center : USM Muskie School of Public Service Maine Crime and Justic DataBook Office of Juvenile Justice and Delinquency Prevention Easy Access to Juvenile Populations U.S Government Accountability Office Intensive Probation Supervision. Cost-Savings Relative to Incarceration. 14