Budget Briefing:Corrections
Robin R. Risko, Senior Fiscal Analyst
January 2019
Briefing Topics
o Funding Sources
o Appropriation Areas
o Major Budget Topics
• Offender Population
• Recent Budget Growth
• Prison Operations: Correctional Facilities
• Field Operations: Parole and Probation
• Offender Success: Programs and Services
January 2019House Fiscal Agency 2
Department of Corrections
o The Department of Corrections (MDOC) administers the state’s adult prison, parole, and probation systems
o Major departmental functions include:
• Operation of all state correctional institutions housing adults who are convicted of felonies and are sentenced to prison; operation includes provision of physical and mental health care, food service, programming, and transportation
• Monitoring and supervising all parolees and probationers who are under the department’s jurisdiction; convicted felons who are not sentenced to prison are either sentenced to county jail or are supervised in the community through the probation system
• Oversight over community corrections programs, offender success programs (including education, job training, and career readiness programming for prisoners while they are incarcerated), and grant programs designed to encourage alternatives to prison placement for appropriate offenders
January 2019House Fiscal Agency 3
Key Budget Terms
Fiscal Year: The state’s fiscal year (FY) runs from October to September. FY 2018-19 is October 1, 2018 through September 30, 2019.
Appropriation: Authority to expend funds. An appropriation is not a mandate to spend. Constitutionally, state funds cannot be expended without an appropriation by the legislature.
Line Item: Specific appropriation amount in a budget bill which establishes spending authorization for a particular program or function.
Boilerplate: Specific language sections in a budget bill which direct, limit, or restrict line item expenditures, express legislative intent, and/or require reports.
Lapse: Appropriated amounts that are unspent or unobligated at the end of a fiscal year. Appropriations are automatically terminated at the end of a fiscal year unless designated as a multi-year work project under a statutory process. Lapsed funds are available for expenditure in the subsequent fiscal year.
Note: Unless otherwise indicated, historical budget figures in this presentation have not been adjusted for inflation.
January 2019House Fiscal Agency 4
Funding Sources
January 2019House Fiscal Agency 5
FY 2018-19 MDOC Budget
Fund Source Funding Description
Gross Appropriations $2,019,056,200 Total spending authority from all revenue sources
Interdepartmental
Grants (IDG) Revenue
0 Funds received by one state department from another state
department, usually for services provided
Adjusted Gross
Appropriations
$2,019,056,200 Gross appropriations excluding IDGs; avoids double counting
when adding appropriation amounts across budget areas
Federal Revenue 5,315,200 Federal grant or matching revenue; generally dedicated to
specific programs or purposes
Local Revenue 8,960,100 Revenue received from local units of government for state
services
Private Revenue 0 Revenue from individuals and private entities, including
payments for services, grants, and other contributions
State Restricted
Revenue
40,939,600 State revenue restricted by the State Constitution, state
statute, or outside restriction that is available only for
specified purposes; includes most fee revenue
State General
Fund/General Purpose
(GF/GP) Revenue
$1,963,841,300 Unrestricted revenue from taxes and other sources available
to fund basic state programs and other purposes determined
by the Legislature
January 2019House Fiscal Agency 6
FY 2018-19 Fund Sources
Federal$5,315,200
0%
State GF/GP$1,963,841,300
97%
State Restricted$40,939,600
2%
Local$8,960,100
1%
January 2019
The Corrections budget is financed with 97% general fund/general purpose revenue.
House Fiscal Agency 7
MDOC Share of Total State Budget
Health and Human Services
$25,488,432,700 45%
School Aid$14,844,588,800
26% Transportation$5,009,788,300
9%
Higher Education/ Community Colleges
$2,077,948,100 4%
Corrections$2,019,056,200
3%
Revenue Sharing$1,314,405,300
2%
Talent & Economic Development
$1,260,746,100 2%
Other Areas$5,215,052,600
9%
January 2019
The MDOC budget represents 3% of the $57.2 billion state budget (adjusted gross) for
FY 2018-19.
House Fiscal Agency 8
MDOC Share of Total GF/GP Budget
Health and Human Services
$4,439,614,400 42%
Corrections$1,963,841,300
19%
Higher Education$1,046,017,900
10%
State Police$493,173,800
5%
Debt Service/SBA Rent
$353,650,600 3%
School Aid/ Dept of Education
$179,423,600 2%
Other Areas$1,951,203,300
19%
January 2019
The MDOC budget represents 19% of the state’s $10.4 billion GF/GP budget for FY
2018-19.
House Fiscal Agency 9
MDOC Funding History
January 2019
Funding for the MDOC has increased by 14.1% since FY 2004-05, driven mainly by
increased costs for physical and mental health care for prisoners, and fringe benefit,
retirement, and overtime costs for employees.
$0
$500
$1,000
$1,500
$2,000
$2,500
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
FY2017
FY2018
FY2019
Mill
ion
s
GF/GP Restricted IDGs/Local/Private Federal
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Appropriation Areas
January 2019House Fiscal Agency 11
MDOC Appropriation Areas
The Corrections budget is allocated into the following major spending areas:
o Prison Operations: operations of the state’s correctional facilities, including physical and mental health care for prisoners, prisoner food service, prisoner behavioral programming, prisoner transportation, and staff training
o Parole and Probation Services: supervision and monitoring of parolees and probationers
o Offender Success Services: prisoner reintegration programs aimed at reducing recidivism through prisoner assessment, case management, and delivery of services; programming includes education, job training, and career readiness programming for prisoners while they are incarcerated
o Community Programs: programs to provide alternatives to incarceration including community corrections programs, residential services, residential probation diversions, Public Safety Initiative, Goodwill Flip the Script, and Felony Drunk Driver Jail Reduction program
o Departmental Administration and Support: general administrative functions (e.g., Executive office, finance and accounting, information technology, legal affairs)
January 2019House Fiscal Agency 12
FY 2018-19 Gross Appropriations
January 2019
Roughly 76% of the Corrections $2 billion budget is allocated to prison operations,
including physical and mental health care for prisoners.
Prison Operations$1,207,794,900
60%
Parole/Probation Services
$268,113,700 13%
Prisoner Health Care$251,579,700
13%
Departmental Administration and
Support$86,080,400
4%
Offender Success Services
$87,579,200 4%
Prisoner Mental Health Care
$61,019,100 3%
Community Programs$56,889,200
3%
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Major Budget Topics
January 2019House Fiscal Agency 14
Offender Population
January 2019House Fiscal Agency 15
The Offender Population
o Prisoners:
• Felony offenders committed to the jurisdiction of the MDOC
• Housed in prisons and special alternative incarceration
o Parolees:
• Prisoners who have served at least their minimum sentence and who have
been released to a period of supervision in the community
• Supervised by MDOC field agents
o Probationers:
• Felony offenders sentenced to a probationary term of supervision in the
community
• Supervised by MDOC field agents
January 2019House Fiscal Agency 16
MDOC Supervised Population
January 2019
As of January 1, 2019, the total offender population under MDOC supervision was
95,964.
Probationers43,098 45%
Prisoners38,789 40%
Parolees14,077 15%
House Fiscal Agency 17
Growth in MDOC GF/GP Spending and the Prisoner Population
January 2019
0
10,000
20,000
30,000
40,000
50,000
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Sp
en
din
g (
in m
illi
on
s)
Prison Population*
MDOC GF/GP Expenditures*
*2018 data is as of January 10, 2019; 2019 figures are based on year-to-date GF/GP appropriations and budgeted prisoner counts
House Fiscal Agency 18
Prison Population Changes
o Changes in the prison population are a function of the movement of offenders into
and out of the system
o Entering the system:
• New court commitments: felony offenders sentenced to prison
• Parole/probation violators: sent to prison due to new sentences or technical
violations
• Court returns: prisoner returns from court (sometimes with additional sentences
imposed)
• Other returns: from community placement, from county jail, from mental health
hospital, from escape of MDOC custody
o Exiting the system:
• Parolees: granted parole by the Michigan Parole Board
• Released to court: for new trial or appeal
• Community Residential Program: community supervision prior to truth-in-
sentencing
• Discharged at maximum sentence
• Other exit: death, temporary county jail stay, release to mental health hospital,
escape
January 2019House Fiscal Agency 19
Parole and Probation Populations
January 2019
8,6
71
11,1
07
11,9
13
12,2
69
12,2
99
11,3
91
11,7
56
12,0
91
12
,29
4
13,1
15
12,8
25
13,1
98
13,9
58
14,2
76
16,3
67
17,4
02
17,1
89
16,0
18
17,8
64
17,4
35
20,3
65
20,3
12
18,1
34
15,8
17
14,5
21
13,8
35
13,4
72
15,2
34
15,1
47
14,0
77
39,4
91
43,1
61
44,9
39
48,2
10
50,9
44
51,1
17
49,8
82
48,5
29
48,8
77
52,4
56
51,6
06
50,6
40
52,7
88
55,7
01
55,9
37
55,9
37
55,1
99
53,3
32
53,4
13
57,5
21
57,8
99
59,4
72
53,3
75
49,4
58
47,5
26
49,6
43
45,1
35
44,9
91
44,0
89
43,0
98
Parolees
Probationers
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Recent Budget Growth
January 2019House Fiscal Agency 21
Corrections Spending Growth by Program
January 2019
From FY 2003-04 to FY 2017-18, Corrections spending increased at an average annual rate
of 1.2%. Spending on prisoner reentry services increased at an average annual rate of 6.6%
and spending on field operations (probation and parole) increased at an average annual rate
of 4.2%.
$1,645 $1,637
$1,746
$1,862 $1,927
$2,039 $2,013 $1,976 $1,948 $1,949 $1,960
$1,998 $1,983 $1,949 $1,975 $1,943
FY2003
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
FY2017
FY2018
Sp
en
din
g (
in m
illi
on
s)
Prison Operations Health/Mental Health Field Operations Community Prg Department Admin Reentry
*2018 data is as of January 10, 2019
House Fiscal Agency 22
MDOC Share of Active Classified Employees
January 2019
As of December 29, 2018, the total number of active classified employees in the state’s
workforce was 48,072. Of those, 25% were employed by the MDOC.
Corrections11,94125%
Rest of State Government
36,13175%
House Fiscal Agency 23
Corrections Personnel Costs
January 2019
Since FY 2003-04, personnel costs for the MDOC have risen by an average of 1.2% annually.
The largest drivers behind these cost increases have been retirement and overtime costs. In
FY 2017-18, these costs accounted for 32.7% of all personnel costs compared to 18.3% in FY
2003-04.
$1,172
$1,302
$1,385 $1,400
$1,500 $1,452
$1,396 $1,405
$1,448 $1,446 $1,454 $1,438 $1,391 $1,391 $1,415
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
FY2017
FY2018
Sp
en
din
g (
in m
illi
on
s)
Regular Salaries Overtime Fringe Benefits Retirement/OPEB FICA/Medicare
*2018 data is as of January 10, 2019
House Fiscal Agency 24
Corrections Personnel Costs Per Employee
January 2019
Personnel costs on a per employee basis for the department have risen by an average of
3.8% annually since FY 2003-04. Again, retirement and overtime costs have played the
largest role, with average annual per-employee increases of 8.0% across the period. Regular
salary costs increased by an average of 2.2% annually.
$69,853
$78,718
$84,205 $85,584
$94,086 $92,137 $93,414
$98,757
$106,914 $109,022
$113,873 $114,545 $110,415
$113,093 $115,008
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
FY2017
FY2018
Ave
rag
e C
os
ts P
er
Em
plo
ye
e
Regular Salaries Overtime Fringe Benefits Retirement FICA/Medicare
*2018 data is as of January 10, 2019
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Prison Operations: Correctional Facilities
January 2019House Fiscal Agency 26
Prison Operations
o The MDOC currently operates 29 correctional facilities located in 19 counties
across the state, including the Detroit Reentry Center and Special Alternative
Incarceration Program (appropriation for Detroit Reentry Center is included in Field
Operations)
o In addition, the MDOC operates the City of Detroit Detention Center at the site of
the former Mound Correctional Facility, which closed in December 2011
(appropriation for the City of Detroit Detention Center is included in Field
Operations, and is paid for by the City of Detroit)
o About $1.5 billion, or roughly 76%, of the FY 2018-19 Corrections budget is
devoted to costs pertaining to prisoner custody (e.g., housing, physical and mental
health care, food, transportation, and treatment programs)
o Academic and vocation programming costs, $41.5 million in FY 2017-18, are
included in costs for offender success services, instead of in costs for prisoner
custody
January 2019House Fiscal Agency 27
Prisoner Custody, Care, and Programs
January 2019
FY 2018-19 appropriation for prisoner custody, care, and programs is $1,522,793,700.
Facilities$1,067,887,700
70%
Physical Health Care$251,579,700
17%
Food Service$70,392,800
5%
Mental Health Care$61,019,100
4%
Admin/Maintenance$45,146,400
3%
Transportation$26,768,000
2%
House Fiscal Agency 28
Costs Per Prisoner by Security Level
January 2019
FY 2017
Actual
Level I
$29,580
Level II
$34,482
Level IV
$43,315
Multi-Level
$37,329
Reception
$53,057
SAI
$56,057
Average Per Capita
$36,106
FY 2018
Appropriated
Level I
$29,529
Level II
$33,894
Level IV
$41,132
Multi-Level
$37,705
Reception
$43,753
SAI
$45,224
Average Per Capita
$36,011
FY 2019
Appropriated
Level I
$30,138
Level II
$35,909
Level IV
$44,913
Multi-Level
$38,646
Reception
$45,585
SAI
$47,023
Average Per Capita
$37,080
House Fiscal Agency 29
Prison Operations - Average Cost Per Prisoner
January 2019
This chart reviews total prison operations spending excluding health care and direct
mental health care costs. Per-prisoner costs grew by an average of 2.3% per year over
this period.
$1,117.0 $1,105.2
$1,213.5
$1,283.4$1,308.1
$1,375.1
$1,313.1
$1,243.7$1,216.5 $1,217.3
$1,189.4
$1,234.9 $1,223.9$1,190.0 $1,205.9 $1,210.2
$22,848 $22,761
$24,576 $24,942$26,055
$28,244 $28,874$28,194 $28,355 $27,923
$27,216$28,480 $28,710 $28,937
$30,401$31,222
FY2003
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
FY2017
FY2018
Pri
so
n O
pe
rati
on
s S
pe
nd
ing
(in
mil
lio
ns
)
Average Cost Per Prisoner
*2018 data is as of January 10, 2019
House Fiscal Agency 30
Health Care - Average Cost Per Prisoner
January 2019
Spending for prisoner physical and mental health care services, including substance abuse
treatment services, increased significantly over the FY 2003-04 to FY 2017-18 time period.
Per-prisoner costs for health care increased by an average of 4.1% annually during this time.
$248.4$237.1
$262.3
$294.5$306.2
$327.5 $323.0 $320.6$312.5
$326.6$314.7 $309.4
$326.5
$312.2 $307.0
$5,115$4,802
$5,097
$5,867$6,290
$7,202 $7,322 $7,473$7,169
$7,472$7,259 $7,258
$7,941 $7,871 $7,920
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
FY2017
FY2018
Hea
lth
Care
Sp
en
din
g (
in m
illi
on
s)
Physical Health Care Mental Health Care Substance Abuse
Average Cost Per Prisoner
*2018 data is as of January 10, 2019
House Fiscal Agency 31
Prisoner Age Distribution and Health Care
January 2019
One major factor in the rise of per-prisoner health care costs is the aging of the prison
population. In 2003, 35.5% of prisoners were over age 40 and 11.8% were over age 50. By
2017, those percentages increased to 44.8% over age 40 and 23.2% over age 50.
2.1% 1.9% 2.2% 2.2% 2.2% 2.0% 1.8% 1.3%
30.9% 29.9% 28.9% 27.5% 28.0% 27.9% 27.9% 26.5%
31.5%30.0% 28.8%
28.2% 27.7% 27.1% 27.1%27.4%
23.7%24.6%
24.8%24.7% 23.8% 23.0% 21.6%
21.6%
9.0% 10.4% 11.3% 12.7% 13.2% 14.1% 14.6% 15.1%
2.8% 3.2% 4.0% 4.6% 5.1% 5.9% 7.0% 8.1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dec 2003 Dec 2005 Dec 2007 Dec 2009 Dec 2011 Dec 2013 Dec 2015 Dec 2017
60+
50-59
40-49
30-39
20-29
<20
Prisoners
by Age
Group
House Fiscal Agency 32
Field Operations: Parole and Probation
January 2019House Fiscal Agency 33
Field Operations
o Field Operations Administration is responsible for state parole and probation supervision, as well as for other methods of specialized supervision
o The largest component of Field Operations is parole and probation; as of January 1, 2019, the MDOC employed 1,136 active parole and probation agents responsible for supervising 57,175 offenders
o Appropriations for the City of Detroit Detention Center and the Detroit Reentry Center are included in the Field Operations unit
o Community reentry centers provide structured housing for parolees placed in the program as a condition of their parole, or placed in the program as a sanction for violating their parole (non-compliance violations or new misdemeanor or non-assaultive felony charges)
o Electronic tether, substance abuse testing and treatment services, residential services, and the Residential Alternative to Prison and Felony Drunk Driver Jail Reduction and Community Treatment programs are all programs available to offenders who meet certain eligibility requirements as alternatives to incarceration
January 2019House Fiscal Agency 34
Field Operations
January 2019
FY 2018-19 appropriation for Field Operations is $266,262,600.
Field Operations$215,083,300
81%
Community Programs$37,073,600
14%
Other Parole/Probation Services/Programs
$10,378,400 4%
Parole Board Operations$3,727,300
1%
House Fiscal Agency 35
Parole/Probation - Average Cost Per Offender
January 2019
Spending for parole and probation has increased by an average of 3.9% annually since FY
2003-04. The cost per offender increased by an average of 5.8% per year over this period.
The use of electronic monitoring techniques significantly increased starting in 2010.
$124.5
$136.0 $139.3 $141.3
$154.6
$165.6
$180.9$186.6
$199.0 $199.8
$209.0 $206.5 $208.6$213.4 $213.8
$1,698 $1,878 $2,008 $1,982 $2,063 $2,116 $2,267$2,609
$3,048 $3,220 $3,292 $3,523 $3,464 $3,603 $3,740
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
FY2017
FY2018
Pa
role
/Pro
ba
tio
n S
pe
nd
ing
(in
mil
lio
ns
)
Average Cost Per Offender
*2018 data is as of January 10, 2019
House Fiscal Agency 36
Offender Success:Programs and Services
January 2019House Fiscal Agency 37
Offender Success Programs and Serviceso Aim to reduce recidivism through prisoner assessment, case planning and
management, and coordinated services from the time of entry into prison through
aftercare in the community
o Involve interagency and state/local collaboration: state departments, local law
enforcement, crime victims’ advocates, faith-based organizations, community
business partners
o $87.6 million appropriation in FY 2018-19, includes roughly $55.5 million for
education, job training, and career readiness programming for prisoners while they
are incarcerated
o Offender Success funding supports:
• Community-based and prison-based offender success planning, case
management, and community in-reach to paroling prisoners
• Employment services and job training, education programs, transitional housing,
day reporting, other planning and support services
• Demonstration projects to develop strategies for improving success of parolees
with mental illness
• Specialized programming for prisoners with mental health issues and other
special needs
• Local offender success planning administrative costs and program evaluation
January 2019House Fiscal Agency 38
Offender Success Spending
January 2019
The Michigan Prisoner Reentry Initiative was implemented statewide in FY 2007-08. In FY 2013-14,
appropriations for community-based reentry programs were reduced and funding reallocated to
correctional facilities for more reentry-related programming to occur before inmates were released from
prison. In FY 2015-16, all reentry-related staff positions and funding throughout the budget were
reorganized into one area, leading to the appearance of a major increase in reentry funding. In FY
2018-19, “prisoner reentry” was renamed “offender success”.
$31.2 $32.6
$44.1$46.4
$65.0
$78.5
$84.7
$78.6
$70.6$67.3
$57.0 $56.4
$72.3$74.6
$67.8
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
FY2017
FY2018
Fu
nd
ing (
in m
illio
ns)
*2018 data is as of January 10, 2019
House Fiscal Agency 39
For more information about theCorrections budget:
January 2019
HFA Resources
http://www.house.mi.gov/hfa/Corrections.asp
Contact Information
Robin R. Risko
Senior Fiscal Analyst
(517) 373-8080
House Fiscal Agency 40