BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 678
                                                                  Page  1

          Date of Hearing:   August 27, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                  SB 678 (Leno/Benoit) - As Amended:  June 25, 2009 

          Policy Committee:                              Public  
          SafetyVote:  7-0

          Urgency:     Yes                  State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill creates the California Community Corrections  
          Performance Incentives Act of 2009 to establish a system of  
          performance-based funding to support evidence-based local  
          probation community corrections practices for the supervision of  
          adult felony probationers.  

           FISCAL EFFECT

           1)Major annual GF savings, likely in the tens of millions, to  
            the extent this act successfully enhances probation services,  
            resulting in a reduction of probation revocations to state  
            prison. 

            A similar version of this proposal adopted by the Budget  
            Conference Committee has been scored by the Department of  
            Finance (DOF) as a $30 million savings for the 2009-10 budget  
            year. These savings should increase significantly in the  
            out-years.

          2)The 2009-10 Budget Act appropriates $45 million from federal  
            Byrne Justice Assistance grant funding to county probation  
            departments for grants consistent with the purposes of this  
            bill, including $424,000 to the Administrative Office of the  
            Courts (AOC), which would administer the grant program in this  
            bill, for administrative purposes. Proponents of this measure  
            view these funds as essentially seed money for the program,  
            which is projected to significantly increase in the out-years  
            as programs take effect and expand. 

          3)DOF notes that if half of the 20,000 felony probationers  








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            currently admitted into state institutions annually instead  
            remained on local probation caseloads with enhanced services  
            and review, the savings from reduced incarceration and parole  
            supervision would be about $255 million (GF). On the basis of  
            these figures, county community corrections programs could  
            receive about $127.3 million annually to enhance probation  
            staffing, practices, programs, etc. 

          4)DOF indicates its administrative workload required by this  
            measure is absorbable. 

           SUMMARY CONTINUED
           
          Specifically, this bill:

          1)Authorizes each county to establish a Community Corrections  
            Performance Incentive Fund (CCPIF), to receive funds allocated  
            from the State CCPIF, as created by this bill, to implement  
            this act.    

          2)Requires the community corrections program to be developed and  
            implemented by the probation department as advised by a local  
            Community Corrections chaired by the CPO and specified  
            members.   

          3)Requires funds provided to probation pursuant to this act to  
            provide supervision and rehabilitative services for adult  
            felony offenders subject to probation, including: 

            Evidence-based risk and needs assessments; intermediate  
            sanctions, including electronic monitoring, community service,  
            home detention, day reporting, work furlough programs, and  
            county jail; more intensive probation supervision;  
            rehabilitation programs such as drug and alcohol treatment,  
            mental health treatment, anger management; and job training  
            and employment services. 

          4)Gives the CPO discretion to spend grant funds on any practices  
            and programs consistent with this act, and requires a minimum  
            of 5% of all funding to be used to evaluate efficacy.      

          5)For purposes of establishing funding criteria and eligibility,  
            requires DOF to calculate a baseline probation failure rate  
            that equals the average number of adult felony probationers  
            sent to state prison during calendar years 2006 to 2008, as a  








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            percentage of the average adult felony probation population  
            during that period. The number of adult felony probationers  
            sent to prison shall include probation revocations, as well as  
            new felony offenses.  

          6)Requires DOF, at the conclusion of each calendar year, to  
            calculate:

             a)   The cost to the state to incarcerate probationers in  
               prison and supervise them on parole, including such factors  
               as average length of stay in prison and on parole for  
               probationers, as well as associated revocation costs.

             b)   The statewide probation failure rate. The statewide  
               probation failure rate shall be calculated as the total  
               number of adult felony probationers statewide sent to  
               prison in the previous year as a percentage of the  
               statewide adult felony probation population as of June 30  
               of that year.

             c)   A probation failure rate for each county, per (b). 

             d)   An estimate of the number of adult felony probationers  
               each county successfully prevented from being sent to  
               prison. This estimate shall be calculated based on the  
               annual reduction in the county's probation failure rate and  
               the county's baseline probation failure rate, accounting  
               for changes in adult felony probation caseload in the most  
               recent completed calendar year.   

          7)Requires, at the conclusion of each calendar year, DOF to  
            assign tier 1 or tier 2 status to each county based on  
            probation failure rates.   

             a)   A Tier 1 county has a probation failure rate no more  
               than 25% higher than the statewide probation failure rate.

             b)   A Tier 2 county has a probation failure rate more than  
               25% above the statewide probation failure rate.  

          8)Requires DOF to calculate a "probation failure reduction  
            incentive payment" for each eligible county, for the most  
            recently completed calendar year, as follows:

             a)   For Tier 1 counties, the payment shall equal the  








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               estimated number of probationers diverted from prison,  
               multiplied by 45% of the costs to the state to incarcerate  
               in prison and supervise on parole a probationer who was  
               sent to prison.

             b)   For Tier 2 counties, the payment shall equal the  
               estimated number of probationers diverted from prison,  
               multiplied by 45% of the costs to the state to incarcerate  
               in prison and supervise on parole a probationer who was  
               sent to prison.
              
             c)   Creates a high performance grant category for counties  
               documenting high success rates with adult felony  
               probationers - counties with adult probation failure rates  
               more than 50% below the statewide average in the most  
               recently completed calendar year. Requires DOF to calculate  
               5% of the savings to the state attributed to those counties  
               that reduce the number of adult felony probationers sent to  
               state prison and use these savings to provide grants to  
               probation departments for evidence-based practices designed  
               to reduce recidivism. The CPO of a county must choose  
               whether to receive a high performance grant or a probation  
               failure reduction payment.

          9)Requires the AOC to administer the grant program. The  
            Legislature may allocate up to 3% of funds annually deposited  
            into the State Community Corrections Performance Incentives  
            Fund to the AOC for administrative costs.  

          10)Specifies if sufficient data is not available, DOF shall use  
            the best available data to estimate probation failure  
            reduction incentive payments and high performance grants using  
            methodology consistent with that referenced in this act.  
           
          11)Prohibits funding awarded pursuant to this act from being  
            used to supplant existing appropriations for county probation.  


          12)Requires a series of evaluations and reports.

             a)   All community corrections programs funded pursuant to  
               this act must identify and track specified outcome-based  
               measures.   

             b)   The AOC must provide measurable performance outcomes,  








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               including the percentage of felony probationers supervised  
               in accordance with evidence-based practices, the percentage  
               of state funds spent for evidence-based programs, and the  
               percentage of felony probationers who successfully complete  
               probation.

             c)   Requires CPOs receiving funding to provide an annual  
               report to the AOC and the Department of Corrections and  
               Rehabilitation (CDCR) evaluating the effectiveness of the  
               community corrections program. 

             d)   Requires the AOC, in consultation with the CPO of each  
               county and the CDCR, to provide a quarterly statistical  
               report to the Department of Finance (DOF), as specified. 

             e)   Requires the AOC to submit to the governor and the  
               Legislature a comprehensive annual report on the  
               implementation of this act, as specified.  

          13)Sunsets January 1, 2015. 

            COMMENTS  

           1)Rationale  . The author's intent is to implement a  
            recommendation of the Legislative Analyst's Office (LAO) to  
            create a model of best probation practices designed to  
            increase public safety and lower state prison costs. 

            According to the author, "Adult probation is a ticking time  
            bomb.  Currently, there are large numbers - 200,000 or more -  
            of adult felons on probation.  Forty percent of new admissions  
            to state prison are offenders who have been sent to prison  
            because they failed on felony probation. That means 40% of  
            those headed to prison for new crimes were under community  
            supervision, but because probation is so sorely  
            under-resourced very little can be done to stop their cycle of  
            offending.  Many of these lower level offenders are prime  
            candidates for intensive intervention practices that can end  
            the cycle of offending, saving tax dollars, and making  
            communities safer."
           
          The author's intent is to reduce the felony probation failure  
            rate by investing in probation and achieving three key goals:

             Reduce crime through a community corrections strategy focused  








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             on increasing supervision and management of felony offenders  
             on probation.

            Reduce prison overcrowding, not by early release, but by  
            decreasing criminal activity of those on felony probation. The  
            bill makes offenders more accountable for their actions by  
            providing better supervision, monitoring and intermediate  
            sanctions.     

            Establish sustainable funding for enhanced adult felony  
            probation through performance incentive funding. As felony  
            probation supervision and management improves, measured by  
            fewer crimes and reduced revocation, communities experience  
            less crime and the state saves more money.  Under performance  
            incentive funding, a significant portion of these state  
            savings are shared with probation for further adult probation  
            services.

           2)LAO Model Program Proposal  . Maximizing fiscal incentives has  
            long been a staple of LAO recommendations. As the LAO notes in  
            its May 2009 report, "Achieving Better Outcomes for Adult  
            Probation," "Probation departments clearly have an interest in  
            the success of adult probationers because of their  
            responsibility to ensure public safety in the community.  
            However, the current funding structure for adult probation may  
            inadvertently provide a fiscal disincentive for counties to  
            successfully retain adult felon offenders on probation where  
            appropriate. When a probationer commits a violation or new  
            crime, probation officers must decide whether to recommend to  
            the court that the offender be retained on probation or sent  
            to state prison. Although we are advised that probation  
            officers frequently recommend retention, they sometimes  
            recommend state prison for those offenders who commit repeated  
            violations. 

            "Probation department officials indicate that this is  
            primarily because they often lack sufficient resources to  
            properly supervise and treat these repeat offenders. In  
            contrast, there is comparatively little cost to the county for  
            undertaking the process needed to send the offender to state  
            prison. In addition, sending violators to state prison allows  
            probation departments to prioritize their limited resources  
            for supervising those offenders who are more amenable to  
            supervision and treatment. The consequence of these fiscal  
            incentives is that some offenders who could be safely and  








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            successfully supervised at the local level, if more resources  
            were available for this purpose, are instead sent to state  
            prison at an even greater cost to taxpayers-about $49,000 per  
            year-plus additional parole costs."

            The LAO report concludes that its recommended model program,  
            proposed in SB 678, "would provide financial incentives for  
            county probation departments to (1) implement the best  
            practices identified by experts as critical for reducing  
            recidivism rates and (2) reduce their revocations to state  
            prison. This, in turn, would result in better public safety  
            outcomes for local communities. At the same time, our proposal  
            would help reduce state prison and parole expenditures, which  
            have increased significantly over the past 20 years and takes  
            up a greater portion of the state budget. In addition, by  
            reducing the number of probationers sent to prison, our  
            proposal could help alleviate the significant overcrowding in  
            the prison system. This could be particularly important given  
            the issuance of a tentative ruling on February 9, 2009, by a  
            federal three-judge panel that the state must reduce the  
            state's inmate population by tens of thousands of inmates."
           
          3)Proponents  include the Association for Los Angeles Deputy  
            Sheriffs, the California Probation, Parole and Correctional  
            Association, the California State Association of Counties,  
            L.A. County, the California State Sheriffs' Association, the  
            California Peace Officers Association, and the the Chief  
            Probation Officers of California. 

           4)Amendments  . The author has technical amendments to add a  
            county supervisor or a county chief administrative officer, as  
            well as a victims' advocate to each local Community  
            Corrections Partnership advisory group. 

           
           Analysis Prepared by  :    Geoff Long / APPR. / (916) 319-2081