Date: 1/12/09
Board of Corrections

Distribution of the $1.5 million 

I. Issue:  	The Corrections Working Group (CWG) has been tasked by the Board of Corrections (BOC) with recommending potential options for distributing the $1.5 million General Fund appropriation in the Board of Corrections Investment Fund. This funding is currently included in the Governor’s Emergency Supplemental Budget, LD 45.

II. Background:

A major component of PL 2007, Chapter 653  section A-37requires “the Commissioner of Corrections to submit a plan to the Governor and the Commissioner of Administrative and Financial Services for the inclusion of a $1,500,000 appropriation to the operating reserve account of the State Board of Corrections Investment Fund in a supplemental or biennial budget bill authorizing appropriations and allocations for the 2009-10 fiscal year.”

Included in the Governor’s Emergency Supplemental Budget, LD 45, is the General Fund appropriation of $1.5 million to the Board of Corrections operating reserve account as outlined in PL 2007, chapter 653, section A-37.

The Budget Focus Group, the Corrections Working Group and the Board of Corrections have held extensive discussions on the topic of developing a plan to distribute $1.5 million to county and regional jails.

Issues resulting from these discussions are:

•	Whether a county or regional jail should be excluded from receiving any distribution based on a sense of non justified transitional fiscal year need or any other reason;

•	Whether a county or regional jail should receive a distribution based on a documented and defined “need”;

•	Whether a county or regional jail should receive a distribution based on a uniform percentage increase; or 

•	Whether this distribution should include reserving a portion of the $1.5 million for emergency or catastrophic funding requests;

III 	Discussion and Recommendations from the Corrections Working Group

There were three options that were analyzed in depth by the Corrections Working Group. These are outlined below. 

However, after a careful analysis, the CWG would recommend the first option as the optimal approach for the BOC to take in addressing the distribution of the $1.5 million Investment Fund. This approach has the benefit of both acknowledging the individual jail needs as presented in the budget requests, as well as taking a larger systems approach to look at the essential components of the system that we need to maintain. 

1.	In order to approach this distribution in a systematic and strategic manner, the Corrections Working Group recommends that the Board of Corrections establish a “three tier” jail system based on:
•	Inmate capacity (number and percentage of the whole):
•	Geographic location (remote location and impacts); and
•	Connection to social service programs or  proposed transportation hubs;

This three tier system can then be used as a basis for further refinement by the BOC to begin a new systems design for jails and prisons. By refining the tiers, the BOC can designate which jails are essential to be maintained and which may see a change of use in the near future.  

The CWG also recommends that $200,000 be reserved as an undesignated fund balance for unknown capital needs that may arise in the six month period. 

For the purpose of the distribution of the $1.5 million the Tier 1 Jails are established as the key jails, housing the largest number of inmates.  Tier 2 Jails are noted as having a significant inmate capacity or having an essential geographic location, and supporting Tier 1 Jails.  Tier 3 Jails are initially identified as warranting further study regarding their utility to the system. (See below for initial Tier system concept).

The CWG recommends that the Board of Corrections distribute:
•	$1.2 million to Tier 1 Jails; 
•	$100,000 to Tier 2 Jails; 
•	Nothing at this time to Tier 3 Jails; and then  
•	Reserve $200,000 for emergency or catastrophic capital funding requests that may occur within the six-month period.

2.	The Board of Corrections can elect to distribute the $1.5 million based on a uniform percentage increase, a simple distribution based on the current cap percentage so that all benefit.

3.	The Board of Corrections can elect to distribute the $1.5 million based on need as established in the amount by which a jail’s six-month budget exceeds its six-month CAP. (See attached chart) 

Recommended Tier System and Funding:

Tier One Jails:
(Fund approx 90% of request)

Androscoggin
Cumberland
Kennebec
Penobscot
Somerset
Two Bridges
York

Tier Two Jails:
(Fund 50% of request)

Aroostook
Hancock
Washington

Tier Three Jails:
(No funding at this time)

Franklin
Knox
Oxford
Piscataquis
Waldo

Request

$113,295
$516,242
$251,447
$176,999
$0
$250,000
$0

$107,309
$95,020
$7,999

$4,482
$13,365
$91,953
$114,922
$28,345

Recommendation

$103,942
$473,622
$230,689
$162,386
$0
$229,361
$0

Equals $1.2 million

$53,000
$47,000
$0

Equals $100,000

$0
$0
$0
$0
$0

J/Tim/BOC OPTION PAPER MS edits – 1-12-09.doc