SB 0781 - Fiscal Note

Fiscal Note - SB 0781 - Increase Prisoner Reimbursement Rates to Counties

L.R. NO.  2843-01
BILL NO.  Truly Agreed To and Finally Passed SB 781
SUBJECT:  Corrections: Local Jails
TYPE:     Original
DATE:     May 20, 1996



                              FISCAL SUMMARY

                    ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED               FY 1997         FY 1998         FY 1999

General Revenue                  $0   ($26,000,000)   ($27,600,000)

Total Estimated
Net Effect on All
State Funds *                    $0   ($26,000,000)   ($27,600,000)

                      *--SUBJECT TO APPROPRIATIONS--


                  ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED               FY 1997         FY 1998         FY 1999

None

Total Estimated
Net Effect on All
Federal Funds                    $0              $0              $0


                    ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED               FY 1997         FY 1998         FY 1999

Local Government                 $0     $26,000,000     $27,600,000


                              FISCAL ANALYSIS

ASSUMPTION

Officials from the Office of Administration-Division of Accounting (OA)
stated in response to a similar proposal that current law sets the prisoner
per diem at $17 until July 1, 1996, and increases it to $20 per day on and
after July 1, 1996.  This proposal would raise the prisoner per diem to
$37.50 per day on and after July 1, 1997, which is an 87.5% increase.  OA
officials assumed that most, if not all, counties and St. Louis City would be
able to establish an actual per diem cost of incarceration at least as high
as the proposed $37.50 and would therefore be able to receive the maximum
reimbursement.  OA officials noted that criminal bill of cost expenditures
for FY 96 have shown a dramatic increase from prior years.  OA officials
estimated that the total  FY96 expenditure could be around $25 million.
Also, OA officials assumed an annual increase in the crime rate of 6%.


FISCAL IMPACT - State Government     FY 1997        FY 1998        FY 1999
                                    (10 Mo.)

GENERAL REVENUE FUND

Cost-Office of Administration-OA
   Jail reimbursement to local
   political subdivisions                 $0  ($26,000,000)  ($27,600,000)

ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND                      $0  ($26,000,000)  ($27,600,000)

                                                    --SUBJECT TO
                                                   APPROPRIATIONS--


FISCAL IMPACT  - Local Government    FY 1997        FY 1998        FY 1999
                                    (10 Mo.)

Income to Local Political Subdivisions
   Reimbursement from state               $0    $26,000,000    $27,600,000

ESTIMATED NET EFFECT ON
LOCAL GOVERNMENT                          $0    $26,000,000    $27,600,000

                                                    --SUBJECT TO
                                                   APPROPRIATIONS--


DESCRIPTION

The proposed legislation would increase the per diem prisoner costs that a
county could charge the state for actual cost of incarceration from $20 per
day per prisoner to up to $37.50 per day per prisoner, but not less than the
amount appropriated in the previous fiscal year, subject to appropriations.
This increase would take effect on July 1, 1997.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.


SOURCES OF INFORMATION

Office of Administration-Division of Accounting