FISCAL NOTE

Date Requested: February 10, 2017
Time Requested: 03:17 PM
Agency: Regional Jail and Correctional Facility Authority, WV
CBD Number: Version: Bill Number: Resolution Number:
1319 Introduced HB2023
CBD Subject: Corrections


FUND(S):



Sources of Revenue:

General Fund

Legislation creates:

A New Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


Summary: It is the Regional Jail Authority’s (RJA) interpretation that this Bill will create a new General Revenue Fund to cover all of the RJA’s Central Office expenses and 10% of the RJA jail facilities operation expenses for FY 2018, which will increase 10% each year until FY 2022, at which time 50% of the RJA jail facilities operation expenses will be paid from this General Revenue Fund. The total of these expenses for FY 2018 will be $14,243,843, based on the current RJA FY 2018 proposed budget (see attached documentation for the breakdown by expense line item). The total of these expenses for FY 2022 will be $49,899,454 (see attached documentation for the breakdown by expense line item). This figure does not take into consideration any budget increases in the RJA budget for the next 5 years. Any increases in the RJA budget would increase this figure. The intent of this Bill is to relieve some of the financial burden that is currently on the WV Counties and Municipalities for the payment of incarceration of inmates in RJA facilities. Currently WV Counties and Municipalities pay RJA approximately $50 million a year. This Bill would alleviate 10% of that amount every year, starting in FY 2018, until 50% is alleviated in FY 2022. At this time, the Counties and Municipalities would be paying only 50% of the RJA facility costs each year going forward. This will alleviate financial burden from the WV Counties and Municipalities, but will put that burden on the 02200State to cover the expenses.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 14,243,843 49,899,454
Personal Services 0 7,683,169 27,902,467
Current Expenses 0 3,738,984 15,967,320
Repairs and Alterations 0 494,650 2,457,250
Assets 0 64,243 314,243
Other 0 2,262,796 3,258,174
2. Estimated Total Revenues 0 -305,350 -305,350


Explanation of above estimates (including long-range effect):


1. Estimated Total Costs – These costs are based on the proposed FY 2018 RJA budget figures. The FY 2018 increase total includes all of Central Office expenses and 10% of the facilities expenses. The FY “for year of full implementation” increase total includes all of Central Office expenses and 50% of the facilities expenses. The full implementation year figure does not take into consideration any increases in the RJA budget for the next 5 years. 2. Estimated Total Revenues – These decreases show the amount of revenue RJA would lose if the per diem rate for inmates that were incarcerated for less than 24 hours was cut in half. These figures were based on the list of FY 2016 inmates that were incarcerated for less than 24 hours.



Memorandum


Memorandum: RJA is unsure on the breakdown for this proposed Bill. Currently RJA’s Central Office expenses are not paid by the per diem revenue from the various jurisdictions that pay RJA. All the per diem revenue is used to pay the RJA facilities expenses. Therefore, moving the Central Office expenses would not alleviate any of the burden from the WV Counties and Municipalities. RJA currently gets per diem revenue from Department of Corrections and various Federal Agencies as well as the Counties and Municipalities, and this revenue stream is not addressed in the proposed Bill. This Bill also suggests lowering the per diem by half for inmates that are incarcerated for less than 24 hours. RJA had 12,657 inmates in FY 2016 that were incarcerated for less than 24 hours. If theses inmates were billed to the Counties at half the per diem rate ($24.125), the RJA would have lost $305,350 in per diem revenue. The RJA currently does not capture the municipality an arrest is made in, this makes data to estimate a 5% cost to municipalities unavailable.



    Person submitting Fiscal Note: Roger Townsend - CFO for RJA
    Email Address: Roger.L.Townsend@wv.gov