HF3223-0-House Offenders in Nonpublicly Owned 2015-2016 Legislative SessionPage 1 of 4
Fiscal Note2015-2016 Legislative SessionHF3223 - 0 - "House Offenders in Nonpublicly Owned "
Chief Author:
Tim Miller
Commitee:
Public Safety and Crime Prevention Policy and Finance
Date Completed:
03/31/2016
Agency:Corrections Dept
SPACESPACE
State Fiscal ImpactYesNo
ExpendituresYESXFee/DepartmentalEarningsNOXTax RevenueNOXInformation TechnologyYESX
-
Local Fiscal ImpactYESX
This table shows direct impact to state government only. Local government impact. if any, is discussed in the narrative.Reductions shown in the parentheses.
State Cost (Savings)
BienniumBiennium
Dollars in Thousands
FY2015FY2016FY2017FY2018FY2019SpaceGeneral Fund
--21,87319,95023,028
Total--21,87319,95023,028Biennial Total21,87342,978
-
Full Time Equivalent Positions (FTE)BienniumBienniumSpaceFY2015FY2016FY2017FY2018FY2019
SpaceGeneral Fund--180204228
Total--180204228Executive Budget Officer's Comment
I have reviewed this fiscal note for reasonableness of content and consistency with MMB's Fiscal Note policies.EBO Signature:Jim King----Date:3/31/2016 5:23:26 PMPhone:651 201-8033----Emailjim.king@state.mn.us
HF3223-0-House Offenders in Nonpublicly Owned 2015-2016 Legislative SessionPage 2 of 4
State Cost (Savings) Calculation Details
This table shows direct impact to state government only. Local government impact, if any, is discussed in the narrative.Reductions are shown in parentheses.*Transfers In/Out and Absorbed Costs are only displayed when reported.
State Cost (Savings) = 1-2
BienniumBiennium
Dollars in Thousands
FY2015FY2016FY2017FY2018FY2019
SpaceGeneral Fund--21,87319,95023,028
Total--21,87319,95023,028Biennial Total21,87342,9781 - Expenditures, Absorbed Costs*, Transfers Out*
SpaceGeneral Fund--21,87319,95023,028
Total--21,87319,95023,028Biennial Total21,87342,9782 - Revenues, Transfers In*SpaceSpaceSpaceSpaceSpace
SpaceGeneral Fund-----
Total-----Biennial Total--Bill Description
The proposed legislation would require the commissioner of the Department of Corrections (DOC) to enter into a contractto lease and operate an existing prison facility with a capacity of at least 1,500 beds located in Appleton, Minnesota, inorder 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 andconfiguration 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, healthservices, and behavioral health.The estimate for the prison operations component is based on the average per diem for that component for the threecurrent level 3 facilities (MCFs-Faribault, Lino Lakes and Moose Lake), as adjusted for management services, physicalplant 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 plantcosts would be built into a negotiated lease price, so for the purposes of this fiscal note the estimated physical plant costsare 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 onthe 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.
HF3223-0-House Offenders in Nonpublicly Owned 2015-2016 Legislative SessionPage 3 of 4
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, asdetermined 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; $37.397million 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 $6million 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 isassumed 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-dateaverage of the number of offenders in county jails for FY2016 is 469. Assuming a rental per diem of $55, savings areestimated 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 PCFat 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 asidentified above.If the DOC were to lease and operate PCF, offenders may be relocated to alleviate security concerns at other correctionalfacilities. That cost is not included in the estimates provided. A greater emphasis on behavioral health services (i.e. chemical dependency treatment, sex offender treatement) wouldincrease 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 1,100offenders, 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.
Expenditure and/or Revenue Formula