FY 2008-09 CORRECTIONS BUDGET S.B. 1095 (CR-1): CONFERENCE SUMMARY


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Amount Over/(Under) GF/GP Target: $ 0
Changes from FY 2007-08 Year-to-Date:
  Items Included by the Senate and House
1. Beds. Governor included $10,802,900 for 800 additional beds. House/Senate did not include. 0
2. Health Care. Governor, Senate, and House included prisoner health care savings. (4,000,000)
3. Economic Adjustments. 7,838,500
4. Other Changes. Senate and House included other changes, resulting in a net increase. 19,900
Conference Agreement on Items of Difference
5. Training. House and Conference included $615,100 more for correctional officer training than the Senate. 1,875,400
6. HMO Savings. Conference included statewide HMO contract savings. (2,767,000)
7. Telephone Fees and Commissions. Senate replaced $10.8 million in phone fees and commissions with GF/GP, and appropriated $10.8 million in phone fees to provide refunds. The remaining $1,884,300 phone fees were removed to correspond to historical revenue. House replaced $11,350,100 in phone fees with GF/GP, and removed $1,334,200 to correspond with historical revenue. House also cut Field Operations by $905,900, which removed all phone fees from that line item. Conference concurred with House. (3,863,000)
8. Public Works. Senate halved public works user fees and replaced the $1,286,900 with GF/GP, and also replaced $1.5 million in FY 2007-08 public works savings. Conference halved public works user fees, and cut an additional $2,516,900 from the program. (2,516,900)
9. Community Corrections and Treatment. Senate provided $1.1 million increases to both substance abuse treatment and community corrections comprehensive plans and services, Conf. provided $225,000 increases. Senate also provided $723,600 for additional residential beds, Conf. provided $150,000. 600,000
10. Intensive Probation. Senate and Conference provided an IDG to the Judiciary to administer an intensive probation pilot program. The probation officer supervising the caseload of the pilot site would report to the Circuit Judge but remain a DOC employee. 980,000
11. County Jail Reimbursement Program. Senate and Conference did not concur with Governor to move $6.9 million in CJRP funds to a new Local Jail Program. House created a new County Reentry Program with $9,204,100 in CJRP funds, leaving three months of funding for CJRP. 0
12. Corrections Reform. Senate saved $6.3 million savings through classification level revisions and facility repurposing, and $3.0 million in overtime through the creation secure units in three hospitals. House and Conference did not concur. 0
13. Central Office. Senate reduced central office operations in Lansing by 22.0%, or $9,490,500. House reduced central office operations by $400,000. Conference reduced by $800,000. (800,000)
14. Regionalization. Senate/House included $4,995,300 through regionalizing business offices. Senate included $893,200 in additional savings. Conference saved $4,995,300 through business office efficiencies. Senate, House, & Conf. saved $5,871,200 ($1,205,400 GF/GP) through centralizing prison stores and warehouses. House/Conference included $3,231,900 in operational savings through regionalizing warehouses. House included $6,400,000 in operational savings through consolidating facility operations. (14,098,400)
Total Changes ($39,032,900)
  FY 2008-09 Conference Report Gross Appropriation $2,040,648,200
FY 2008-09 CORRECTIONS BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2007-08 Year to Date:
  Items Included by the Senate and House
1. Female Technical Rule Violator Pilot Program. Senate and House included a pilot program to reduce criminal behavior and returns to prison for female parole violators and a report on the program. (Sec. 423)
2. Prisoner Education. Senate and House required the DOC work with DOE to evaluate the feasibility of local school districts providing education programs to prisoners under the age of 20. (Sec. 923)
3. Mentally Ill Prisoners. Senate and House required the DOC to train custody officers to handle mentally ill prisoners; evaluate all prisoners at intake for mental illness, developmental disorders, and substance abuse disorders; that prisoners with serious mental illness not be placed in segregation; and a report on the number and length of stay of prisoners with mental illness or developmental disorders in segregation. (Sec. 505, 924, and 925)
Conference Agreement on Items of Difference
4. Privatization. Gov./Senate deleted the evaluation of any privatization effort. House/Conference retained. (Sec. 207 & 207a)
5. Displaced Employees. House/Conference required that the DOC try to place displaced employees in other MDOC positions, and expressed intent that employees not placed be given priority in State job training or education programs. (Sec. 225)
6. Reforms to Reduce the Prison Population. House appropriated $25,369,600 to open beds and keep Scott open if statute changes sufficient to eliminate the need for 1,680 beds by the end of FY 2008-09 are not enacted by January 1. Conference did not include. (Sec. 226)
7. Workgroups. House/Conference suspended any reductions in prison storekeepers and the regionalization of business offices until workgroups are convened to report whether alternative changes exist that would result in savings (Sec. 228 & 229).
8. Staff Savings Initiative. House required the DOC to develop a staff savings initiative where employees submit ideas for savings, and 10.0% of any savings realized from an idea be reallocated to the office where that employee works. Conference required the DOC to develop a staff savings initiative and a report on the ideas submitted. (Sec. 304)
9. Intensive Substance Abuse Services. House and Conference intend that the DOC work with DCH and substance abuse coordinating agencies to refer offenders to substance abuse services provided in Sec. 484 of S.B. 1094. (Sec. 405a)
10. County Jail Reimbursement Program. Governor modified eligibility criteria for CJRP. Senate did not concur. House restricted funding for the program to the first quarter of the fiscal year. (Sec. 414)
11. County Reentry Program. House stated that criteria for reimbursement rates for the program is to be determined by a workgroup including the Legislature, counties, county sheriffs, MDOC, and local courts. Criteria shall identify offenders who otherwise likely would be sentenced to prison and ensure a prison bed space impact of at least 2,200 beds annually. If criteria are not determined by Jan. 1, funding shall be used for diversion programs, as determined by the DOC, and consistent with MPRI and PA 511 of 1988. (Sec. 414a)
12. Medicaid. Senate required that Medicaid benefits be suspended for offenders entering prison, that DOC assist prisoners with Medicaid enrollment process before release, and that DOC work with DCH on analyzing the impact of suspending the Medicaid status of offenders with mental illness. House and Conference intend that DOC provide DHS with a monthly list of new prisoners, DHS provide a list of prisoners eligible for Medicaid benefits, DOC assist prisoners with the enrollment process, and required DOC to provide the Legislature with updates on Medicaid utilization for prisoners. (Sec. 424/812)
13. Field Agent Caseloads. Senate required field agent supervisors to carry a caseload. Conference required the DOC conduct a workload study to determine whether the supervisors could carry a caseload. (Sec. 607)
14. Public Works User Fees. Requires development of a reimbursement rate for public work services provided by prisoners. Also includes intent that works projects be continued at the level included in the FY 2006-07 appropriations bill, user fees be doubled, and prisoner pay increased by 10.0%. Governor included only the reimbursement rate requirement. Senate and Conference halved fees and required DOC to maintain a list of the number of prisoners available for crews, and the number needed for current contracts. House maintained FY 2007-08 rates. (Sec. 906)
15. Value-based Programming. Intent that the DOC start an evidence-based pilot program that changes offenders' attitudes toward victims and the community. Governor and House deleted. Senate removed intent and allocated $100,000 for the program. Conference removed intent and stated that sufficient funding be allocated. (Sec. 917)
16. Prisoner Employment and Programming. Senate and Conference required prisoners to be employed or be in training full-time, and allowed prisoners to be in school for at least half-time instead of employment. (Sec. 922)
17. Surcharge. House put a 20.0% surcharge on nonessential prison store items, with 55.0% of the revenue for trooper schools. Conference included a 10.0% surcharge, with all revenue going to trooper schools. (Sec. 926)
18. Maxey Training School. House/Conf. intend that DOC and DHS examine housing youth prisoners at Maxey. (Sec. 927)

Date Completed: 6-27-08 Fiscal Analyst: Lindsay Hollander Bill Analysis @ http://www.senate.michigan.gov/sfa This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. hicor_cr.doc