123rd MAINE LEGISLATURE
		LD 2080		LR 2952(03)
	An Act To Better Coordinate and Reduce the Cost of the Delivery of State and County Correctional Services
	Fiscal Note for Bill as Amended by Committee Amendment "     "
	Committee: Criminal Justice and Public Safety
	Fiscal Note Required: Yes
Fiscal Note
State Mandate - Funded
			2007-08	2008-09	Projections 2009-10	Projections 2010-11
Net Cost (Savings)
	General Fund		$0	$792,340	$1,500,000	$0
	Fund for a Healthy Maine		$0	$1,046,562	$1,046,562	$1,046,562
Appropriations/Allocations
	General Fund		$0	$792,340	$1,500,000	$0
	Fund for a Healthy Maine		$0	$1,046,562	$1,046,562	$1,046,562
State Mandates
	Required Activity				Unit Affected	Costs
	Modifies the operations of the county jails.  The established cap on county tax assessments for correctional expenditures will shift additional costs to the State and is intended to fund 90% of the additional local costs.				County	Unknown
Fiscal Detail and Notes
	This bill creates a unified correctional system and establishes a State Board of Corrections to manage both the county jails and state correctional facilities in cooperation with the county sheriffs and county commissioners and the Department of Corrections.
	This bill adds new requirements on counties and may significantly modify the operation of the county jails.  Some of these additional requirements and modifications may require additional county expenditures.  Because this bill establishes a cap on county tax assessments for correctional services with the State funding the remainder of the additional costs of this coordinated correctional system, the State is providing funding sufficient to fund more than 90% of the additional county costs associated with this mandate.
	This bill establishes a new enterprise fund within the Department of Corrections called the State Board of Corrections Investment Fund to compensate county governments and the department for approved costs and to credit the fund with specified efficiency savings.  The State Board of Corrections will establish growth limitations for correctional services expenditures.  Any net county jail assessments in excess of net county jail appropriations resulting from efficiencies or downsized facilities will accrue to the fund.
	The cap on county assessments, based on a 5% assumed growth rate of county jail costs, represents a shift of costs from the counties to the State.  The estimated additional state costs are approximately $3.1 million in fiscal year 2008-09, $6.4 million in fiscal year 2009-10 and $9.8 million in fiscal year 2010-11.  These additional costs are partially offset by a negotiated reduction of rates for boarding state prisoners at county jails.  Under the direction of the State Board of Corrections, efficiencies will generate net additional savings beginning in fiscal year 2009-10.  Based on estimates developed by the Department of Corrections and the State Planning Office, these savings are projected to be roughly $12.2 million in fiscal year 2009-10 and $13.3 million in fiscal year 2010-11.
	The actual amount of the revenue accruing to the State Board of Corrections Investment Fund and the expenditures from the fund can not be established at this time.
	Beginning in fiscal year 2009-10, revenue from a fine surcharge accruing as dedicated revenue to the Government Operations Surcharge Fund, currently budgeted at $262,016 per year, will accrue to the new enterprise fund.
	This bill requires the Commissioner of Corrections to submit a plan for the inclusion of a $1,500,000 General Fund appropriation to the operating reserve account of the State Board of Corrections Investment Fund for fiscal year 2009-10.
	The actual amount of the revenue accruing to the State Board of Corrections Investment Fund and the expenditures from the fund can not be established at this time and will vary depending on the plan adopted by the board for the unified state and county correctional system.
	This bill also includes General Fund appropriations for the following:
	1. $772,340 in fiscal year 2008-09 to the State Board of Corrections Investment Fund account within the Department of Corrections to provide funds to board approximately 100 inmates in various county jails.
	2. $20,000 in fiscal year 2008-09 to the State Board of Corrections Investment Fund account within the Department of Corrections to provide funds for expenses for the State Board of Corrections.
	This bill also includes an allocation from the Fund for a Healthy Maine of $1,046,562 in fiscal year 2008-09 to the County Jail Prisoner Support and Community Corrections Fund account within the Department of Corrections to restore the amount appropriated for this program up to the level provided in fiscal year 2007-08.