BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1266 (Liu)
          
          Hearing Date:  05/17/2010           Amended: 05/11/2010
          Consultant:  Jacqueline Wong-HernandezPolicy Vote: Public Safety  
          5-2
















































          _________________________________________________________________ 
          ____
          BILL SUMMARY: SB 1266 authorizes the Department of Corrections  
          and Rehabilitation (CDCR) to establish an "alternative custody"  
          program under which eligible female inmates and inmates who were  
          the primary caregivers of dependent children immediately  
          previous to incarceration would be allowed to participate in  
          lieu of their confinement in state prison, as specified. This  
          bill also provides that CDCR shall be allocated in its budget,  
          50 percent of the savings created by the alternative custody to  
          administer evidence-based recidivism reduction practices to  
          program participants.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions                 2010-11                  2011-12      
                       2012-13              Fund
           
          Alternative custody              Potentially substantial prison  
          cost reduction             General

          50% allocation to CDCR      Potentially significant cost  
          pressure                          General
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: This bill may meet the criteria for referral to  
          the Suspense File. 


          This bill would authorize the secretary of CDCR to create an  
          alternative custody arrangement for female inmates, pregnant  
          inmates, and inmates who were primary caregivers of dependent  
          children immediately prior to incarceration, as specified and  
          limited. The alternative custody arrangement would include  
          living in a residential home, and CDCR would be authorized to  
          determine exact conditions of confinement and treatment. CDCR  
          would also be allowed to determine participation within  
          prescribed eligibility guidelines; participation would not be  
          automatic, and CDCR would have the discretion to disallow  
          participation.



          This bill simply authorizes CDCR to develop and implement an  
          alternative custody program. There is no cost or savings to the  









          authorization provided by the bill but, to the extent that CDCR  
          implements an alternative custody program, the optional program  
          could result in substantial savings. The direct savings from  
          this bill would result from individuals living in the community,  
          rather than in secure custody. There would be some cost to  
          monitoring participants, but it would not be as expensive as  
          secure custody in a prison. Additionally, while CDCR would still  
          be responsible for participants' medical and mental health  
          services, it would no longer be responsible for otherwise  
          supporting the individual. This bill specifies that the  
          participant is allowed to work, and access available services in  
          the community for which he or she may be eligible. Even if there  
          is a cost to accessing services in the community, such as  
          CalWORKs or food stamps, the overall state cost for this aid  
          would be less than housing and securing an inmate in prison. 



          Page 2

          SB 1266 (Liu)



          Implementing an alternative custody program would also likely  
          result in savings to various child welfare services agencies.  
          This bill would provide that "primary caregivers of dependent  
          children" are those who were primarily responsible for the care  
          and upbringing of one or more children. The population eligible  
          for the program is inmates who were the primary parents or  
          guardians of children, as defined. To the extent that the  
          children who were cared for prior to the inmate's incarceration  
          would otherwise be in some form of foster care, this bill would  
          result in significant savings to local, state and federal foster  
          care funds. Savings would be most substantial for children who  
          were placed in group homes (which can cost thousands of dollars  
          per month) or with foster families (typically up to $900 per  
          month). There would still be significant savings for children  
          who were placed with other relatives (not including the child's  
          other parent), because of their eligibility for special foster  
          care funding and programs.



          This bill provides that "it is the intent of the Legislature  
          that the department shall be allocated in its budget 50 percent  
          of the savings created by the enactment of this section, once  









          savings are achieved." The bill does not, however, indicate how  
          savings will be proven, or who will determine the calculation  
          factors. It is unclear whether potential costs to other state or  
          local agencies incurred by serving this population will be  
          considered in determining CDCR's "savings".It is also unclear  
          how the cost of incarceration (as a comparative cost for  
          calculating savings) would be determined. The department often  
          indicates that the state incarceration cost is $49,000 per  
          inmate, but that is an average cost that does not account for  
          the vast differences in services required by individual inmates,  
          including a specific inmate's medical and mental health care  
          needs (which CDCR would continue to pay for in this program).  
          Additionally, removing from prison a small number of inmates,  
          would likely only result in a residual cost savings; residual  
          cost is approximately $23,000 per inmate. Even the residual cost  
          savings is an average not specific to the particular inmates  
          being moved. Many of the inmates likely to qualify for this  
          program will be women, and the cost figures identified are  
          primarily based on men's incarceration costs because men  
          comprise the vast majority of prison inmates. Many of those  
          eligible are also likely to be in lower security facilities, and  
          their incarceration currently costs less than the highest  
          security prisons.



          If the cost of the program is simply calculated as an average  
          cost per participating inmate and is compared to a prison-wide  
          average incarceration cost, the savings reflected might not be  
          accurate for the specific individuals being diverted to the  
          program. If the savings is overestimated, the 50% of that  
          calculated number would also be overestimated and allocated back  
          to CDCR. In that situation, the actual General Fund savings  
          would be substantially eroded. The inmate average cost is  
          $26,000 more than residual cost. In combination with potential  
          cost shifts to other state funded social services, the  
          possibility exists that the program could result in a net cost  
          to the state if the costs and savings factors are not accurately  
          assessed. Additionally, because this language provides  
          legislative intent, and not an appropriation, the actual  
          allocation of savings would have to be made in a future bill,  
          which further confuses the issue of how the ultimate savings  
          determination will be made. 



          Staff recommends that the savings allocation intent language be  









          removed from the bill.