Cost Analysis of Housing State Inmates in Regional and Private Correctional Facilities
Executive Summary
Senate Bill 3123, Regular Session, 2001, mandated that the PEER Committee conduct a cost analysis of the necessary per diem, per inmate cost associated with housing state inmates at the state’s ten regional correctional facilities and two of the state’s five private correctional facilities. SB 3123 provided daily census guarantees that were to continue until the PEER Committee could determine whether a lower census would enable these facilities to meet necessary costs resulting from housing state inmates.
For the period reviewed, PEER found $696,364 in unnecessary costs at the regional facilities. PEER calculated $341,862 in excessive attorneys’ salaries and fees; $216,000 in excessive accreditation and program consultant fees; and, $138,502 in unnecessary payments to county sheriffs. If eliminated, these excessive costs would reduce the number of state inmates required to break even at six of the seven regional facilities open as of October 1, 2000.
With these unnecessary costs removed, all regional facilities open as of October 1, 2000, will break even at an average daily census of 188 state inmates, below the 230 state inmates provided for in SB 3123 and thereby making the guaranteed censuses inoperative. (Facilities’ inmate housing agreements with the Department of Corrections guarantee 200 state inmates.) With unnecessary costs removed, the average per diem rate for the operational costs of housing state inmates is $18.69. (The state’s share of debt service costs must be added to this figure to determine the total per diem rate.)
For the period reviewed, PEER found no unnecessary costs at the two private facilities reviewed. The breakeven point for the Delta Correctional Facility is 843 inmates and 871 inmates for the Marshall County Correctional Facility. Both facilities break even at levels below the 900 inmates provided for in SB 3123, thereby making the guaranteed censuses inoperative. PEER notes that these are for-profit facilities and that the computed breakeven points include no profit margin. The amount of profit allowed is a policy question beyond the scope of the review.
Recommendations
Designation of Chief Corrections Officer
The Legislature should amend MISS. CODE ANN. Section 47-5-935 to allow counties to designate a regional facility’s warden as Chief Corrections Officer, without additional compensation for performing these duties. The Legislature should amend the section to delete the requirement that sheriffs receive $15,000 compensation for duties as Chief Corrections Officer.
Cost Efficient Per Diem
The Legislature should amend MISS. CODE ANN. Section 47-5-933 to allow the Department of Corrections (MDOC) to negotiate a uniform per diem for regional correctional facilities based on efficient operation, elimination of excessive costs, and the state’s portion of individual debt service costs of each regional facility.
Funds Appropriated for Housing Inmates at Higher Levels
The Legislative Budget Committee should determine MDOC’s intentions regarding any additional funds appropriated to house inmates at the higher levels provided for in Senate Bill 3123.