Legislature(2009 - 2010)BUTROVICH 205

02/02/2009 01:30 PM Senate JUDICIARY


Download Mp3. <- Right click and save file as

Audio Topic
01:33:28 PM Start
01:33:52 PM Iser Research Summary
02:30:16 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Institute of Social and Economic Research TELECONFERENCED
Presentation: "The Cost of Crime: Could
the State Reduce Crime & Save Money by
Expanding Education & Treatment
Programs?"
-- Steve Colt & Stephanie Martin, ISER
-- Testimony <Invitation Only> --
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE JUDICIARY STANDING COMMITTEE                                                                             
                        February 2, 2009                                                                                        
                           1:33 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Hollis French, Chair                                                                                                    
Senator Bill Wielechowski, Vice Chair                                                                                           
Senator Kim Elton                                                                                                               
Senator Lesil McGuire                                                                                                           
Senator Gene Therriault                                                                                                         
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
Institute of Social & Economic Research: "The Cost of Crime:                                                                    
Could the State Reduce Crime & Save Money by Expanding Education                                                                
& Treatment Programs?"                                                                                                          
     HEARD                                                                                                                      
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record.                                                                                                   
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
STEVE COLT, Associate Professor of Economics and                                                                                
Director of ISER                                                                                                                
University of Alaska, Anchorage                                                                                                 
Anchorage, AK                                                                                                                   
POSITION STATEMENT:  Delivered the ISER research summary on                                                                   
expanding education and treatment programs and reducing the cost                                                                
of crime.                                                                                                                       
                                                                                                                                
STEPHANIE MARTIN, Assistant Professor                                                                                           
Economics & Public Policy and                                                                                                   
ISER Faculty Member                                                                                                             
University of Alaska, Anchorage                                                                                                 
Anchorage, AK                                                                                                                   
POSITION STATEMENT:  Delivered the ISER research summary on                                                                   
expanding education and treatment programs and reducing the cost                                                                
of crime.                                                                                                                       
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:33:28 PM                                                                                                                    
CHAIR  HOLLIS   FRENCH  called  the  Senate   Judiciary  Standing                                                             
Committee meeting  to order at 1:33  p.m. Present at the  call to                                                               
order  were  Senators  Elton,  Therriault  and  French.  Senators                                                               
Wielechowski and McGuire joined the meeting soon thereafter.                                                                    
                                                                                                                                
                     ^ISER Research Summary                                                                                 
                                                                                                                                
1:33:52 PM                                                                                                                    
CHAIR FRENCH announced that Steve  Colt and Stephanie Martin from                                                               
the  Institute  of  Social  and  Economic  Research  (ISER)  will                                                               
present a  study that  came out  of the  2008 Crime  Summit. Last                                                               
year  Mr. Steve  Aos from  Washington state  was invited  to talk                                                               
about his  efforts to  use an economist's  perspective to  get an                                                               
idea of the payback to society  for having invested a dollar in a                                                               
rehabilitation  program.   His  work   was  an  eye   opener;  my                                                               
colleagues and  I were able to  get $50,000 and we  asked ISER to                                                               
conduct a "Steve Aos style"  evidence-based research inquiry into                                                               
the Alaska rehabilitation program.                                                                                              
                                                                                                                                
1:35:18 PM                                                                                                                    
STEVE  COLT,   Associate  Professor  of  Economics   and  Interim                                                               
Director  of ISER,  University of  Alaska, Anchorage,  introduced                                                               
himself.  He said  that he  received his  doctorate in  economics                                                               
from  MIT and  has been  working in  Alaska for  about 25  years.                                                               
Stephanie  Martin,  Assistant  Professor of  Economics  &  Public                                                               
Policy, and  ISER faculty, University of  Alaska, Anchorage, also                                                               
introduced herself.                                                                                                             
                                                                                                                                
MR.  COLT presented  the  research report  titled:  "The Cost  of                                                               
Crime:  Could the  State Reduce  Future Crime  and Save  Money by                                                               
Expanding Education  and Treatment  Programs?" and  restated that                                                               
it stems  from Mr.  Aos' visit  about a year  ago. The  report is                                                               
also available on the ISER web site at www.iser.uaa.alaska.edu.                                                                 
                                                                                                                                
CHAIR FRENCH  held up a sign  showing the address and  added that                                                               
it can also be found by "Googling" ISER.                                                                                        
                                                                                                                                
MR. COLT  said the goal of  the analysis was to  see if expanding                                                               
effective  intervention  programs  might reduce  crime  and  save                                                               
money. The study  was based on work done in  Washington state and                                                               
pioneered by  Mr. Aos.  He will summarize  the study  process and                                                               
the  major conclusions.  He thanked  the Alaska  Criminal Justice                                                               
Working  Group for  its work  and cooperation.  It is  chaired by                                                               
Lieutenant  Governor Parnell  and Supreme  Justice Carpeneti  and                                                               
includes  members  from  departments   that  deal  with  criminal                                                               
justice. They  would particularly  like to  thank staff  from the                                                               
Department of  Corrections, the Department  of Health  and Social                                                               
Services, Juvenile Justice, and the Alaska Mental Health Trust.                                                                 
                                                                                                                                
1:38:24 PM                                                                                                                    
CHAIR  FRENCH  recognized that  Senator  McGuire  had joined  the                                                               
committee.                                                                                                                      
                                                                                                                                
MR. COLT  explained that evidence-based policy  analysis was used                                                               
to perform  the study. It  is roughly similar to  clinical trials                                                               
in medicine and  means that they generally used  only the results                                                               
of studies  where there was  a random  assignment of people  to a                                                               
program  or  control group.  Some  studies  were used  where  the                                                               
control  group   was  created   by  carefully   matching  program                                                               
participants with  non-participants after  the fact.  That method                                                               
is used in medical epidemiology, but  it isn't quite as good as a                                                               
randomized clinical  trial. For the  most part they  used studies                                                               
that  mimicked the  medical clinical  trial approach  of randomly                                                               
assigning people.                                                                                                               
                                                                                                                                
He next outlined  the step-by-step approach taken  to conduct the                                                               
study.                                                                                                                          
   1. They made a base-line projection of prison inmates from now                                                               
     thru 2030.                                                                                                                 
   2. They worked closely with the Alaska Criminal Justice                                                                      
     Working Group to identify programs that are currently                                                                      
     offered in Alaska.                                                                                                         
   3. They screened the list of programs and eliminated a few                                                                   
     because adequate rigorous analysis wasn't available upon                                                                   
     which to make a judgment. "We're trying to remain true to                                                                  
     the ideals of this idea of evidenced based analysis."                                                                      
   4. They applied the Steve Aos model-and the empirical results                                                                
     he gathered from a review of hundreds of studies                                                                           
     nationwide-to the Alaska data on the eligible populations                                                                  
     and inmate populations.                                                                                                    
   5. They shared the results with the Criminal Justice Working                                                                 
     Group, listened to their feedback and made adjustments to                                                                  
     the analysis accordingly.                                                                                                  
                                                                                                                                
1:41:49 PM                                                                                                                    
MR. COLT  set forth the findings  and conclusions from page  1 of                                                               
the report as follows:                                                                                                          
   · With no change in policies, the number of Alaska inmates                                                                   
     likely will double by 2030-from 5,300 to 10,500.                                                                           
        · If the state spent an additional $4 million a                                                                         
          year to expand programs it already has, ISER                                                                          
          estimates  that  the  prison  population  in  2030                                                                    
          might be  10 percent smaller  than projected-about                                                                    
          1,050 fewer inmates.                                                                                                  
        · Finding three extends the analysis through time                                                                       
          and  tallies  the  costs and  benefits  in  dollar                                                                    
          terms. That finding is that  the state would spend                                                                    
          about $124  million for expanded  programs through                                                                    
          2030. By doing so it  could avoid $445 million for                                                                    
          a  net  savings of  $321  million.  It would  save                                                                    
          money  by   incarcerating  fewer  people   and  by                                                                    
          delaying prison  construction costs.  Fewer people                                                                    
          would   be  incarcerated   because  fewer   people                                                                    
         because they would be committing fewer crimes.                                                                         
        · The fourth major finding is that education and                                                                        
          substance-abuse  treatment   programs  in  prison,                                                                    
          after  prison, and  instead of  prison would  save                                                                    
          the state  two to  five times  what they  cost and                                                                    
          would reach the most  people. They also found that                                                                    
          programs for  teenagers are effective  at reducing                                                                    
          crime  and  saving  money, but  they  reach  fewer                                                                    
          people.                                                                                                               
                                                                                                                                
1:43:49 PM                                                                                                                    
CHAIR FRENCH recognized that Senator  Wielechowski had joined the                                                               
committee. He  summarized what  had been  covered and  noted that                                                               
today this report was released to the public for the first time.                                                                
                                                                                                                                
MR. COATS agreed.                                                                                                               
                                                                                                                                
CHAIR  FRENCH added  that this  is the  first opportunity  to see                                                               
that  investing a  few dollars  today  can save  thousands a  few                                                               
years out.                                                                                                                      
                                                                                                                                
MR. COATS agreed that the analysis does show that.                                                                              
                                                                                                                                
SENATOR ELTON noted the report focuses  on the state and asked if                                                               
there had been any analysis  to suggest that municipalities would                                                               
see comparable reductions.                                                                                                      
                                                                                                                                
MS. MARTIN clarified that the  study specifically looked at state                                                               
spending, but  just as trooper  costs would go down  she believes                                                               
that police costs also would go down.                                                                                           
                                                                                                                                
SENATOR ELTON  said that in  addition to saving $321  million, he                                                               
would  assume  that  additional  cost  savings  would  accrue  to                                                               
municipalities, which are a taxing authority in the state.                                                                      
                                                                                                                                
MS. MARTIN nodded.                                                                                                              
                                                                                                                                
SENATOR ELTON asked  how they settled on $4 million  and did they                                                               
run  numbers  on  whether  or   not  spending  more  would  bring                                                               
additional benefits.                                                                                                            
                                                                                                                                
MS.  MARTIN explained  that cost  was  not the  first thing  they                                                               
looked  at. Initially  they looked  at the  number of  people the                                                               
programs could serve  and the amount by which  each program could                                                               
be expanded. After  that they tallied the numbers  and arrived at                                                               
$4 million.                                                                                                                     
                                                                                                                                
SENATOR  ELTON   characterized  the   $4  million  as   a  policy                                                               
suggestion to the Legislature.                                                                                                  
                                                                                                                                
MR. COLT  said he  would strongly  hesitate to  call it  a policy                                                               
suggestion, but  that does anticipate several  points he intended                                                               
to make.  One point  is whether  $4 million  is a  high or  a low                                                               
number. For several  reasons it could be either high  or low, but                                                               
he  believes the  estimates are  on the  low side  of what  would                                                               
accrue.  First,  they  did  not   do  an  exhaustive  catalog  of                                                               
downstream  savings   to  other   law  enforcement   agencies  or                                                               
governmental  entities. The  second  reason relates  to how  they                                                               
arrived at the $4 million  figure and the program expansions that                                                               
drive that  number. "You'll have  to make your own  judgment, but                                                               
after  you hear  a  little bit  more about  how  that number  was                                                               
arrived at  you'd probably  conclude that yes  there is  room for                                                               
additional expansion beyond  what we've plugged in to  get the $4                                                               
million."  Diminishing  returns  is  one  reason  they  used  the                                                               
relatively  conservative   number  for   the  scope   of  program                                                               
expansion. Although  it's not in  the report, the third  thing he                                                               
wants to  emphasize is that no  attempt was made to  quantify the                                                               
cost savings to  the victims themselves. In part  that is because                                                               
it is  very difficult to monetize  those costs, but in  any event                                                               
that cost  is zero in  this analysis.  "We believe that  lends an                                                               
additional element of conservatism to the analysis," he said.                                                                   
                                                                                                                                
1:49:40 PM                                                                                                                    
MR. COLT asked Ms. Martin to expand on the list of programs.                                                                    
                                                                                                                                
MS.  MARTIN explained  that they  looked  at education  programs,                                                               
substance abuse programs and transition  programs. The latter are                                                               
for  people who  are leaving  an institution  and reentering  the                                                               
community.  The  various  programs serve  different  populations.                                                               
Prison-based education  programs include: adult  basic education,                                                               
GED, vocational,  and job training. Prison-based  substance abuse                                                               
programs   in   Alaska   include  residential   programs   within                                                               
institutions as  well as out-patient  programs. They  also looked                                                               
at  sex-offender treatment  and found  that it  is effective  but                                                               
it's necessary  to have both  a community component,  which there                                                               
is, and a prison component, which  does not exist in Alaska. That                                                               
was added  to the list  of programs. As  an aside she  noted that                                                               
sex offender  programs reduce  recidivism but  they are  not cost                                                               
effective. That  is clearly demonstrated  in Figure 6  chart that                                                               
ranks programs in terms of how  much money they save and how much                                                               
they reduce crime.  Sex offender programs show up  just above the                                                               
bottom axis indicating there is no savings.                                                                                     
                                                                                                                                
1:51:45 PM                                                                                                                    
MS.  MARTIN  said that  the  education  programs they  looked  at                                                               
included  Head Start  preschool programs,  which serve  three and                                                               
four-year-olds.  Those  have  an unbelievable  effect  on  future                                                               
crime, but  the effects are  not apparent until years  later. "In                                                               
general the  programs that are  directed at young people  are way                                                               
more effective than [those that are] directed at adults."                                                                       
                                                                                                                                
CHAIR FRENCH said he assumes that  they build in the time-cost of                                                               
money and the delay in the reduced crime rate.                                                                                  
                                                                                                                                
MS. MARTIN said that's correct.                                                                                                 
                                                                                                                                
SENATOR  THERRIAULT  asked if  they  used  data from  Head  Start                                                               
research  since  it's   probably  the  oldest  early-intervention                                                               
program.                                                                                                                        
                                                                                                                                
MS. MARTIN  replied they  used Mr. Aos's  evaluation of  the Head                                                               
Start  Program  to determine  how  effective  it is  in  reducing                                                               
crime.  His  data  came  from about  a  dozen  nationwide  random                                                               
assignment studies of  Head Start. She added that a  lot of early                                                               
education programs do not look at  crime as an outcome. Most look                                                               
at outcomes like high school graduation and teen pregnancy.                                                                     
                                                                                                                                
Under  transition  programs  they  looked  at  the  Institutional                                                               
Discharge Project Plus (IDP Plus).  It has a very good recidivism                                                               
reduction  rate but  it only  serves about  70 people  statewide.                                                               
Alaska has a  prison population of about  5,000 and approximately                                                               
40 percent  are mental health  trustees. We  did not put  a large                                                               
expansion in their model simply because it's so small, she said.                                                                
                                                                                                                                
MS.  MARTIN said  they looked  at  alternatives to  incarceration                                                               
including  therapeutic  courts,  mental health  courts  and  drug                                                               
courts. Those are  very effective and have  an immediate benefit.                                                               
Rather than  adding to  the cost  of being  in prison,  they're a                                                               
dramatically less  costly alternative than the  $44,000/year cost                                                               
of  incarcerating  a person.  "With  those  programs you  get  an                                                               
immediate payoff." They also looked  at electronic monitoring. It                                                               
does not  affect crime  rates, but  it is  cost-effective because                                                               
people aren't  put in  prison. "The most  expensive way  to treat                                                               
people  is  to  incarcerate  them." It  costs  about  $44,000  to                                                               
incarcerate an adult and nearly $90,000 for a juvenile.                                                                         
                                                                                                                                
For  juvenile offenders  they  looked  at aggression  replacement                                                               
training, which has  been implemented in the  institutions and is                                                               
starting  in  schools.  Also,  they   looked  at  family  therapy                                                               
programs and transition programs.  For young children they looked                                                               
at Head Start.                                                                                                                  
                                                                                                                                
1:55:22 PM                                                                                                                    
MS. MARTIN  directed attention  to Figure 6  and said  you really                                                               
can't  say which  program is  best because  each one  has a  cost                                                               
dimension, an eligible pool dimension and a time dimension.                                                                     
                                                                                                                                
CHAIR FRENCH  focused on adult education  and said that as  a lay                                                               
person  he  wouldn't  generally  associate  getting  a  GED  with                                                               
reducing the  crime rate. He asked  her to walk through  how much                                                               
crime might  be reduced and  why that  produces a savings  to the                                                               
state.                                                                                                                          
                                                                                                                                
MS. MARTIN explained  that without any programs  about 68 percent                                                               
of  people who  are  incarcerated will  return  to prison  within                                                               
three years of their release. Typically they return soon.                                                                       
                                                                                                                                
SENATOR WIELECHOWSKI  asked what  the average education  level is                                                               
in the correction system.                                                                                                       
                                                                                                                                
MS. MARTIN  said she didn't  know, but  most inmates do  not have                                                               
high  school   diplomas  or  GEDs.  Continuing,   she  said  that                                                               
recidivism  is reduced  by about  70  percent, which  is about  5                                                               
percent lower. "These are small  small effects but over time they                                                               
become big numbers."                                                                                                            
                                                                                                                                
CHAIR FRENCH  mused that  when you spend  $44,000 per  person per                                                               
year on  5,000 inmates, a  4 or  5 percent reduction  can produce                                                               
dramatic  results over  time. "You  can't look  for a  'Hail Mary                                                               
touchdown  pass;' you've  got to  just get  a few  yards on  each                                                               
program and it adds up."                                                                                                        
                                                                                                                                
SENATOR MCGUIRE asked if they  considered what reinstituting some                                                               
community-based  mental  health  programs  could  do  to  address                                                               
issues prior to an event that leads to incarceration.                                                                           
                                                                                                                                
MS. MARTIN said  no; they talked about that around  the table but                                                               
that's all.                                                                                                                     
                                                                                                                                
SENATOR MCGUIRE asked why.                                                                                                      
                                                                                                                                
MS.  MARTIN explained  that the  Criminal  Justice Working  Group                                                               
developed the list and she  believes that they were programs that                                                               
were coming  off of federal  grant funding onto state  funding or                                                               
they were  programs that departments  were thinking  about asking                                                               
for more money for.  There had to be a limit  and the first thing                                                               
was to  look at  transition programs  and evaluate  how effective                                                               
they were. The next step would be to look at community programs.                                                                
                                                                                                                                
CHAIR  FRENCH asked  for more  information  about the  transition                                                               
program they looked  at and whether they were  targeted at mental                                                               
health trust beneficiaries or all  inmates including the mentally                                                               
ill.                                                                                                                            
                                                                                                                                
MS. MARTIN said  it was trust beneficiaries but  Mr. Jessee could                                                               
probably provide a more thorough answer.                                                                                        
                                                                                                                                
1:59:47 PM                                                                                                                    
JEFF JESSEE, Chief Executive Officer,  Alaska Mental Health Trust                                                               
Authority, said the IDP Plus program  is for people coming out of                                                               
corrections who  have a serious  mental illness.  Everyone coming                                                               
out  of corrections  isn't eligible,  but  a sizeable  percentage                                                               
are.                                                                                                                            
                                                                                                                                
CHAIR  FRENCH   observed  that  although  they   didn't  look  at                                                               
treatment  for the  mentally ill,  they did  focus on  transition                                                               
programs for that population.                                                                                                   
                                                                                                                                
MR.  JESSEE  said  yes;  the working  group's  direction  was  to                                                               
identify a  discrete number of  programs for expansion.  His view                                                               
is  that it  wasn't a  comprehensive view  of what  might be  put                                                               
together as a  coordinated strategic effort over time.  It was to                                                               
build a basic understanding of  the connection between recidivism                                                               
and having or not having some of these alternative programs.                                                                    
                                                                                                                                
SENATOR  MCGUIRE  observed  that  there  seems  to  be  a  direct                                                               
correlation between budget cuts  in community-based mental health                                                               
treatment  programs  and  a  rising   prison  population  of  the                                                               
mentally ill. She encouraged continuing  focus on that connection                                                               
and  what  the Legislature  can  do  to  address that  issue.  "I                                                               
certainly don't  think it's  the intention  of Alaskans  to house                                                               
our mentally ill in our prisons," she said.                                                                                     
                                                                                                                                
MR.  JESSEE   replied  there  are   efforts  underway   that  are                                                               
independent of  this. For example, there's  been discussion about                                                               
a  housing  trust  because  it's   critical  to  connect  support                                                               
services to housing. The governor's  budget has a $10 million set                                                               
of increments that  are directed toward implementing  year one of                                                               
the Council on the Homeless  ten-year plan. He believes that this                                                               
study  presents  a baseline  understanding  that  you can  impact                                                               
recidivism and the  corrections population over time  if there is                                                               
a  strategic action  plan  that is  monitored  and managed.  "Any                                                               
initiative like this  has to be actively managed,"  he said. That                                                               
became clear in the Bring  the Kids Home initiative. A particular                                                               
group has  to oversee implementation of  the strategy, constantly                                                               
reevaluate the data and make adjustments over time.                                                                             
                                                                                                                                
2:03:57 PM                                                                                                                    
SENATOR  ELTON said  the challenge  goes beyond  just identifying                                                               
the exact amount  of money that's put into the  programs. Part of                                                               
the  challenge also  is  to coordinate  who  will prioritize  the                                                               
programs and  decide what  entity can  best deliver  the service.                                                               
For example,  if you look  at transitional  housing he can  see a                                                               
role for  the Mental Health  Trust, tribes and  community groups.                                                               
He  asked Mr.  Jessee if  he could  discuss whether  the Criminal                                                               
Justice  Working  Group or  some  other  structure would  be  the                                                               
coordinator. "If  you buy  in to  the notion  that some  of these                                                               
programs are effective,  how do you create the  structure to make                                                               
sure that you  have the right people delivering  the services and                                                               
you have the right kind of  mileposts to make sure that the money                                                               
is being spent as best it can be?"                                                                                              
                                                                                                                                
MR.  JESSEE  referenced  the  successful   Bring  the  Kids  Home                                                               
initiative and said the key stakeholders  have to be at the table                                                               
and  take  responsibility  for  the  outcomes.  Tribal  entities,                                                               
providers,  family  members  and  others   have  to  be  part  of                                                               
developing  the strategies  and  monitoring implementation.  With                                                               
respect to  implementing, monitoring and revising  the initiative                                                               
he noted that  the Criminal Justice Working Group  is weighted in                                                               
the  criminal justice  area yet  many of  the programs  come from                                                               
health and  social services and  education. Some  modification of                                                               
the working group certainly could  provide oversight but the main                                                               
point is that  funding a one time $4 million  increment and doing                                                               
nothing to  manage a  strategic plan  could be  disappointing and                                                               
not translate  into expected  savings. "Again,  if you  set those                                                               
outcomes  and  you manage  towards  them,  I  think you  can  get                                                               
there." Understand  that the  charge was  only to  establish what                                                               
works. "Translated into a specific  strategic plan and vision for                                                               
Alaska and implementing it…is taking the next step."                                                                            
                                                                                                                                
2:07:50 PM                                                                                                                    
SENATOR ELTON said  he appreciates the answer because  one of the                                                               
challenges is the  "silo effect," which is  that corrections does                                                               
this, education  does this  and health  and social  services does                                                               
this. He  suggested that  the next  step might  be to  charge the                                                               
working group  or some  other entity with  figuring out  who will                                                               
make things work across those boundaries.                                                                                       
                                                                                                                                
CHAIR  FRENCH asked  Ms.  Martin  to discuss  the  line graph  in                                                               
Figure 1.                                                                                                                       
                                                                                                                                
MS.  MARTIN  explained   that  Figure  1  has   three  pieces  of                                                               
information.  The top  line represents  the inmate  population in                                                               
Alaska; it  shows a 500  percent increase between 1981  and 2007.                                                               
The  second line  shows the  inflation-adjusted state  operations                                                               
spending for  criminal justice,  which includes  corrections, the                                                               
courts, the troopers  and juvenile justice. Those  numbers are up                                                               
[192 percent].  Line three shows  a 30 percent decrease  in crime                                                               
rates. The graph demonstrates that  there is crime reduction with                                                               
increased spending  but you have  to spend  a lot of  money. Over                                                               
time as more  bad guys are put in jail  it becomes more difficult                                                               
to show reduced crime numbers by increased spending, she said.                                                                  
                                                                                                                                
Figure 2  is a pie chart  of 2002-2007 release data.  During that                                                               
six-year period about 82,000 people  were released from prison or                                                               
jail; 78 percent had been  incarcerated for misdemeanor offenses.                                                               
Alaska  has  a strict  sentencing  system  and the  most  serious                                                               
violent offenders are incarcerated for a long time.                                                                             
                                                                                                                                
CHAIR FRENCH  added that  those crimes  include murder,  rape and                                                               
kidnapping.                                                                                                                     
                                                                                                                                
MS. MARTIN agreed.                                                                                                              
                                                                                                                                
CHAIR  FRENCH  recognized  that  Senator  Davis  had  joined  the                                                               
meeting.                                                                                                                        
                                                                                                                                
2:11:32 PM                                                                                                                    
MS.  MARTIN  continued. Figure  3  is  titled Potential  Effects,                                                               
Costs of,  and Savings from  Expanded Prevention  or Intervention                                                               
Programs. Information  on the left  side of the chart  shows that                                                               
the state is  currently spending $17 million on  programs. To get                                                               
the results  that we  estimated the state  must spend  $4 million                                                               
[every year to expand programs].                                                                                                
                                                                                                                                
CHAIR  FRENCH summarized  that the  state is  spending about  $17                                                               
million now and  your study assumed a $4  million increase, which                                                               
is approximately a 25 percent increase.                                                                                         
                                                                                                                                
MS.  MARTIN agreed.  She  continued to  explain  that the  middle                                                               
figure shows that  for every ten people who return  to prison one                                                               
will  not  be re-incarcerated  if  these  programs are  expanded.                                                               
"These  are not  big numbers,  but over  time they  add up."  The                                                               
figures on  the right show  that inflation proofing  the expanded                                                               
programs would cost  $124 million between 2009  and 2030. Avoided                                                               
inmate costs would amount to about  $45 million for a net savings                                                               
of  over $300  million. Most  of  the savings  come from  delayed                                                               
prison construction.                                                                                                            
                                                                                                                                
SENATOR ELTON said he assumes that  most of the savings accrue in                                                               
later years.                                                                                                                    
                                                                                                                                
MS. MARTIN  agreed; in the  early years  you spend more  than you                                                               
save. There's about  a two-year lag between the  time the program                                                               
starts and when you'd see recidivism.                                                                                           
                                                                                                                                
CHAIR FRENCH commented that if you  spend the $4 million it's not                                                               
as though there  won't be any more crime. "You're  just not going                                                               
to see that  except for the slow accumulation of  the savings and                                                               
the reduced crime from that one out of ten."                                                                                    
                                                                                                                                
MS. MARTIN agreed.                                                                                                              
                                                                                                                                
2:13:32 PM                                                                                                                    
CHAIR  FRENCH  recognized  that Senator  Thomas  had  joined  the                                                               
meeting.                                                                                                                        
                                                                                                                                
MS.  MARTIN said  that  Figure 4  on page  2  shows annual  state                                                               
spending  per  inmate  from  1981 to  2008.  Currently  it  costs                                                               
$44,000  per  inmate  per  year.   Adjusting  for  inflation  the                                                               
spending was higher in the 1980s when the state had more money.                                                                 
                                                                                                                                
MR.  COLT clarified  that they  aren't  certain that  all of  the                                                               
capital costs for the prison  system are included in that number.                                                               
$44,000 might  be a little  low; it's somewhat dependent  on when                                                               
prisons were  built, how they  were paid  for and how  it's being                                                               
done now.                                                                                                                       
                                                                                                                                
MS. MARTIN continued. Figure 5 is  a pie chart that shows that 60                                                               
percent of Alaska inmates have  substance abuse issues, 6 percent                                                               
have  mental health  disorders,  30 percent  have both  substance                                                               
abuse  issues and  mental  health disorders  and  4 percent  have                                                               
neither.  Clearly,  a lot  of  people  could benefit  from  these                                                               
programs, she said.                                                                                                             
                                                                                                                                
SENATOR WIELECHOWSKI asked if she  has a further breakdown on the                                                               
percentage of  people who  have alcohol  abuse issues  versus the                                                               
percentage  that  have  drug,   narcotic  or  prescription  abuse                                                               
issues.                                                                                                                         
                                                                                                                                
MS. MARTIN  suggested Mr. Jessee  might have that  information in                                                               
his head.                                                                                                                       
                                                                                                                                
MR.  JESSEE said  he doesn't  have  the breakdown,  but the  vast                                                               
majority substance abuse issues relate to alcohol.                                                                              
                                                                                                                                
2:15:59 PM                                                                                                                    
MS. MARTIN  continued. Table 1  lists the programs  they reviewed                                                               
and  shows  the  population currently  being  served,  reasonable                                                               
expansion of the programs and the eligible pool.                                                                                
                                                                                                                                
CHAIR  FRENCH  said  that  for  example  the  education  programs                                                               
include  adult  basic  education   and  vocational.  About  1,000                                                               
inmates are  currently taking advantage  of one or both  of those                                                               
and the suggested expansion would be 500 inmates.                                                                               
                                                                                                                                
MS. MARTIN  said yes; they  put those  numbers into the  model to                                                               
generate the estimates.                                                                                                         
                                                                                                                                
CHAIR FRENCH  said he would  guess that education isn't  the most                                                               
expensive program.                                                                                                              
                                                                                                                                
MS. MARTIN  said that's  right; the  most expensive  programs are                                                               
residential   treatment   but   they're   less   expensive   than                                                               
incarceration.  "They save  more money  even though  the up-front                                                               
costs are higher."                                                                                                              
                                                                                                                                
Figure 6 is  a chart that demonstrates how  effective the various                                                               
programs are  at saving  money and  reducing crime.  The vertical                                                               
axis shows a multiple of how  much the state could expect to save                                                               
for  each dollar  it spends  and  the horizontal  axis shows  the                                                               
percentage points  that the programs  reduce crime.  For example,                                                               
electronic monitoring yields a huge 22  to 1 payoff, but there is                                                               
no associated crime reduction.                                                                                                  
                                                                                                                                
CHAIR  FRENCH noted  that electronic  monitoring saves  the state                                                               
money because  someone who is  wearing an ankle bracelet  at home                                                               
isn't in a $44,000/year prison cell,  but no study says that they                                                               
don't go out and reoffend once their sentence is up.                                                                            
                                                                                                                                
MS. MARTIN  clarified that there is  a study that tests  that and                                                               
it has no effect on crime.                                                                                                      
                                                                                                                                
CHAIR FRENCH  said so  there is no  difference in  the recidivism                                                               
rate between  a person who is  home and wearing an  ankle monitor                                                               
and a person who  is in a prison cell. There  is no difference in                                                               
later behavior based on their previous experience.                                                                              
                                                                                                                                
MR. COLT  clarified that is  based on  the evidence and  he would                                                               
defer to  anyone who knows  more. It  could be that  the evidence                                                               
base in inadequate and that the  conclusion is more of an unknown                                                               
than zero.                                                                                                                      
                                                                                                                                
CHAIR  FRENCH suggested  that needs  further testing  because you                                                               
could reach  the conclusion that  everyone should be on  an ankle                                                               
monitor.                                                                                                                        
                                                                                                                                
MS. MARTIN responded "unless you wanted to reduce future crime."                                                                
                                                                                                                                
2:19:05 PM                                                                                                                    
CHAIR  FRENCH  recognized  that  Senator  Ellis  had  joined  the                                                               
meeting.                                                                                                                        
                                                                                                                                
SENATOR MCGUIRE  asked if there  have been any studies  that look                                                               
at  the  population  that  doesn't  reoffend  and  ask  what  the                                                               
significant events were  that kept them from  reoffending. Was it                                                               
treatment,  ankle  monitoring,  transitional housing,  family  or                                                               
church support or something else?                                                                                               
                                                                                                                                
MS. MARTIN said she doesn't know the answer to that question.                                                                   
                                                                                                                                
SENATOR MCGUIRE said that's something  to keep in mind because it                                                               
might be a way to get at that question.                                                                                         
                                                                                                                                
SENATOR ELTON said he was  surprised to see electronic monitoring                                                               
lumped  in   with  education   treatments  because   he's  always                                                               
considered it to be another  form of incarceration. Lumping it in                                                               
with  treatment  would  assume that  they're  incarcerated  in  a                                                               
different  way,  but  those   individuals  aren't  receiving  any                                                               
treatment at all to help reduce recidivism.                                                                                     
                                                                                                                                
MS.  MARTIN explained  that  they  tried to  make  the groups  as                                                               
concise as  possible. Ankle monitoring  was placed in  that group                                                               
because it doesn't incur the  cost of incarceration, but it could                                                               
have been  split out  differently because  it's not  a treatment.                                                               
"But it is a way to save the state money," she added.                                                                           
                                                                                                                                
CHAIR FRENCH  referred to Figure  6 and observed that  Head Start                                                               
is the most effective program they  looked at. It saves six times                                                               
more than  it costs and  reduces future crime  among participants                                                               
by about 16 percentage points.                                                                                                  
                                                                                                                                
MS. MARTIN said that's correct.                                                                                                 
                                                                                                                                
SENATOR WIELECHOWSKI calculated that the  actual drop would be 40                                                               
some percent.                                                                                                                   
                                                                                                                                
MS. MARTIN agreed it's about 42 percent.                                                                                        
                                                                                                                                
2:22:11 PM                                                                                                                    
MS. MARTIN  explained that  Figure 6 shows  that the  farther you                                                               
are  to the  right  on the  bottom axis  the  more effective  the                                                               
programs are at  reducing crime. The higher on  the vertical axis                                                               
the larger the cost savings "so there's a lot of trade offs."                                                                   
                                                                                                                                
Figure  7 is  a bar  graph that  projects how  expansion of  each                                                               
program  type  contributes  to   reduced  growth  in  numbers  of                                                               
inmates.  The entire  triangle  shows that  by  2030 1,049  fewer                                                               
inmates  are projected.  Each bar  is color-coded  and shows  the                                                               
reduction that is  expected from each program  type. The programs                                                               
don't  all have  the same  effect  on the  prison population;  it                                                               
depends  on  the  number  of  people served  and  the  effect  on                                                               
recidivism. The cost  benefit of each program  type is described.                                                               
For example, pre-school programs cost  about $1,000 per child and                                                               
saves about six times that much,  but the effects of that program                                                               
aren't seen until  about 2025 when those  pre-schoolers are about                                                               
18 years old.                                                                                                                   
                                                                                                                                
For  comparison,  the  bottom   segments  include  programs  like                                                               
therapeutic courts.  Those divert  people from the  prison system                                                               
so they show an immediate reduction in the number of inmates.                                                                   
                                                                                                                                
CHAIR FRENCH asked her to describe the largest, red segments.                                                                   
                                                                                                                                
MS.  MARTIN  explained that  those  represent  education and  job                                                               
training programs in the prisons.  They have a big impact because                                                               
they  reach  the  most  people.   ["Education  and  job  training                                                               
programs in  prison add  about $1,000 to  inmate costs,  but they                                                               
reach the  most people and save  about four times more  than they                                                               
cost."] She  added that they're  not most effective  programs but                                                               
they're the easiest to expand.                                                                                                  
                                                                                                                                
SENATOR WIELECHOWSKI  recalled that  Mr. Aos had  statistics that                                                               
showed  that one  of  the most  cost-effective  ways of  reducing                                                               
crime is to  fund foster care. "I  think it was $73  for every $1                                                               
spent." He asked if ISER looked at that.                                                                                        
                                                                                                                                
MS. MARTIN  said that  program wasn't on  the list;  she believes                                                               
there are  some impediments  to implementing  it here  in Alaska.                                                               
Another program  that has  an unbelievable  effect is  the nurse-                                                               
family  partnership.   Nurses  go   into  houses   of  low-income                                                               
expectant  or  new mothers.  "The  group  decided that  it's  not                                                               
practical or  possible to  implement it  in Alaska."  She doesn't                                                               
know what the constraint was.                                                                                                   
                                                                                                                                
2:25:41 PM                                                                                                                    
Figure 8  is a line  graph showing  the average number  of Alaska                                                               
Inmates from 1971  to 2007 and the projected number  from 2008 to                                                               
2030.  In 2007  there were  5,327 inmates  in prisons,  jails and                                                               
halfway houses. The  dotted blue line projects  10,513 inmates by                                                               
2030 at the  current program level. The dotted  red line projects                                                               
9,464 inmates in  2030 if the programs are  expanded as proposed,                                                               
which is a 10 percent  fewer inmates. The financial benefit comes                                                               
from  delaying prison  construction.  Currently a  new prison  is                                                               
built  every six  or seven  years and  that can  be stretched  to                                                               
every nine or  10 years if these programs are  expanded. "At $300                                                               
million per facility that's a lot of money," she said.                                                                          
                                                                                                                                
CHAIR FRENCH noted  that he just received an  email invitation to                                                               
the  signing of  the contract  to  build the  new Point  McKinsey                                                               
Correctional  Facility   so  it's  timely  to   hear  about  some                                                               
alternatives.                                                                                                                   
                                                                                                                                
MS. MARTIN  added that the MatSu  prison is scheduled to  open in                                                               
2012 and part  of the program there is to  bring home the inmates                                                               
who are incarcerated in Arizona.  Those 900 inmates combined with                                                               
the expected  increase of  600 inmates will  fill that  prison as                                                               
soon as it opens so we're already behind the curve, she said.                                                                   
                                                                                                                                
MR. JESSEE  referred to the  visiting nurses program  for at-risk                                                               
families and explained  that Alaska had a  similar program called                                                               
Healthy  Families.   The  Mental  Health  Trust   invested  about                                                               
$500,000  over  five  years  to   have  John  Hopkins  University                                                               
evaluate the  outcomes and the  data demonstrated that  it didn't                                                               
work.  Again he  emphasized that  investing money  in a  strategy                                                               
that  is effective  on paper  and  expecting it  to get  intended                                                               
results doesn't  necessarily get  you there. He  recalled telling                                                               
the  Legislature it  either needed  to  fix the  program or  stop                                                               
funding  it and  the  decision was  to stop  funding  it. But  it                                                               
doesn't mean that  the model wasn't good, he said.  "It's just if                                                               
you're going  to invest in  it you  have to have  somebody paying                                                               
attention to whether it's being  implemented with fidelity to the                                                               
model and  whether it's getting  the results that  you intended."                                                               
Another failed  program was called  the Alaska  Youth initiative.                                                               
It provided wraparound services to  kids to keep them instate and                                                               
in their homes, but over time  it degenerated. The Bring the Kids                                                               
Home  initiative  is  basically  recreating  that  program.  "The                                                               
difference is  we learned  from the  last time  that you  have to                                                               
keep tripwires in place to  identify when these programs cease to                                                               
be functioning as they intend."                                                                                                 
                                                                                                                                
2:30:16 PM                                                                                                                    
CHAIR FRENCH  thanked Mr. Colt  and Ms. Martin and  adjourned the                                                               
Senate Judiciary Standing Committee meeting at 2:30 pm.                                                                         
                                                                                                                                

Document Name Date/Time Subjects
ISERcostofcrime_final090127.pdf SJUD 2/2/2009 1:30:00 PM