NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to appropriation in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Corrections Department (CD)

Attorney General (AG)

SUMMARY

Synopsis of Bill

SB537/SJCS appropriates $80,000 from the general fund to CD for expenditure in FY 2002 and 2003 to develop options and assess relative advantages and disadvantages of public or private financing construction, ownership and operation of correctional facilities in the State.

The study conducted would address the following factors:

(1) whether there is a need for more correctional facilities in the State and how many;

(2) the timetable for the need;

(3) the configuration of the prospective facility or facilities in terms of custody or classification levels;

(4) the location of the prospective facility or facilities, including an assessment of the labor market and wage rates of the location;

(5) the support services available for a prospective facility; and

(6) the programs envisioned within the prospective facility.

The bill further mandates that two separate assessments shall be done, one to assess the issues of public ownership of the prospective facility or facilities and one to address the issues of private ownership. The assessment would need to be done by December 31, 2002 for presentation to the Governor, the Secretary of Corrections, the President pro tempore of the Senate, the Speaker of the House of Representatives. A report shall be presented to an appropriate legislative interim committee at their November 2002 meeting.

Any unexpended balances of the appropriation remaining at the end of FY 2003 will revert to the general fund. The effective date of the provision of the act is July 1, 2001.

Significant Issues

According to CD, this bill seems to provide the flexibility for the department to carefully analyze its long-term needs, consider its overall bed plan/capacity, philosophies, and factor in cost containment considerations. This is the type of strategic correctional planning that was recommended by the Independent Board of Inquiry (IBI) Report. Considering the fact that CD and its private correctional partners have almost used all new bed capacity, it is essentially needed for future capacity decisions.

The result of the studies could permit CD to actively engage with the Legislature in developing comprehensive, thoughtful recommendations for future facilities in terms of the design, financing, ownership and operation in light of legislative aspirations, the department's particular expertise, as well as the observations and recommendations tendered by the IBI and Corrections Oversight Committee. This could in turn assure the building of humane, safe and economical corrections complexes.

PERFORMANCE IMPLICATIONS

CD reports there would be minimal performance impact upon the department. However, in the long term, the bill could indirectly result in a significant improvement in the department's prison programs.

FISCAL IMPLICATIONS

The appropriation of $80.0 contained in this bill is a non-recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2003 shall revert to the general fund.

ADMINISTRATIVE IMPLICATIONS

CD reports there will be an increase in the administrative burden on several department employees who would be responsible for coordinating with the contractor and providing information for the study.

TECHNICAL ISSUES

The AG reports Section 1 (c) omits a third option: public ownership with private operation.

LAT/njw:ar