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MICROCOPY RESOLUTION TEST CHART NATIONAL BUREAU OF STANDARDS-1963-A

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U.S. DEPARTMENT OF JUSTICE LAW, ENFORCEMENT ASSISTANCE ADMINISTRAtiON NATIONAL CRIMINAL JUSTitE REFERENCE SERVICE WASHIMGTON t D:C. 20531

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STATE OF HAWAII

DEPARTMENT OF SOCIAL SERVICES AND HOUSING CORRECTIONS RESEARCH AND STATISTICS 8UREAU .

1149 BETHEL. STREET, ROOM 416

HON0L.UL.U, HAWAII 96StS

RESEARCH P~PORT NO. 10'

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A COST-BENEFIT STUDY OF AN

ALTERl~ATIVE TO INCARCERATION

DECEHBER 1974

(LEAA PROJECT NO. 73A-10.1)

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If you have issues viewing or accessing this file contact us at NCJRS.gov.

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TABLE OF CONTENTS

Page Fore\vord .... It .1 ...... 0> ........................ " ............ II ......................... 1

Abstract ... 0 ..... I» e ...... ' ..... "' ....... 11 ............................... " ...... " ..... 2 ·1 I

Introduction •••••••••••••••••••••••••••••••••••••••••• 3

.. , Methodology ......... It. 8> ............................. II .. II lit ........................ ". 1lI.4

. Find i ng s .0" .................................. II e ......................... D> It .............. ill .... 5

Limitations of Analysis •••••••••••••••••••••••••••••• 13

Discussion ................................ ,. ............................... " .... ' ..... .,. .15

Appendix A . Statement of purpose of HSP and CRC ••••••••••••••• 19

Appendix B . Time Period Calculations •••••••••••••••••••••••••• 21

Appendix C Cost Calculations. o •••••• " •••••••••••••••••••••••• 33

References -.......................... " " .. 5 " ................................................ 40

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Fore\'/'ord

Tnis study is but an initial - and only one - attempt at estimatip,g

the social value of an offender's correctional eA-perience. I t is an es t:iJnate,­

·at best, and a~ such'is in no way int~nded to advocat~ policy.

, The principal :inves~igator in this proJect was Mr. Francis Okano, R(~search

Associate, who was assisted by :Mr. Dave Hamamura'" Research StatisticialL.

Extensive data ~ollection ~V'as undertaken du~ing the months of July and1\ugust

·1974 by summer aides Harumi Hatchie, Ronalda Jay, Arm Kaminishi, Hmlfard Ivlaetani,

Wesley Nish:iJnoto, Roxanne Onouye, Patricia O'Toole, and Pauline Ouchi.

Acknowl~dgemellts are fully an~ gratefully extended to all members; of

the Corrections Division and the Board of Paroles .and Pardons ,> DSSH" ·for their

unstint~g cooperation and assistance in the provision of data.

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ABSTRACT

Asa means of handli?g committed felons, is in-COl1nllWlity treatment

economically efficient? Based on cost i terns est:imaL'.ed in this study) it has

been found -that those offenders who had gone thro~gh Conditional Release Center,

as part of tlleir correctional commitment, incurred less costs to society in

relation to benefits whan those who had not. The difference is due to lower

eRC operati?g costs, ~ages earned by CRC residents in the community, and slightly

better parole performance by CRC residents.

The overall benefit to cost ratio for those with CRC exposure 1.'las 1.067

while for those without, it 'was .610. The majority of the societal costs

(about 90%) concentrated duri.ng the individual's stay in corrections, while the'

majority of the societal benefits (about 70%) were incurred on par?le, during an

average case process.

Moreover, the benefit to cost ratio for correctional stay was .320 for

thsoe '''itll CRC experience and .18.4 for those without, while the ratio for parole

was 7.036 for those with and 4.721 for those without eRC exposure. Therefore,

although corrections appears to be relatively "expensive" in comparison 'with

parole, CRC experience tended to be relatively ~lore socially nbenefieial" than

traditional incarceration.

A major benefit of· the CRC experience ''las found to be the productivity of

residents in conununity jobs.

This study does not examine the causal relationship beu'leen CRC exposuTe

and its long-term effect, a problem that would require more controls on subject

characteristics.

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I. Im1~ODuCItION

. Consistent with the emphasis in the Correctional Naster Plan for more

in-community treatment and less in.carceration, it is worthwhile to examine the

relatively efficiency in. resource use of these two correctional methods.

l~ithin ~e Corrections Division, there are pre~ently U'lO community condi-

:tional release ~enters,' Laurnaka, started in 1968, and Kamehameha (formerly Adult

Furlough Center), started in 1973. Both p~ograms enable a small number of

residents to work and attend school in the community. This opportun:i.ty, combined

,-lith active group participation in facility operati.ons, provides convicted

felons with one means of readjustment 'into the cori'ununi ty to ,'lhich th~y will

eventually retulTI.

Hawaii State Prison, which holds about 70% of the total Corrections Division

custody population, is des,igned. primarily for incarceration. Residents participate

in''lork and educational activities within the prison compounds, bu~ are not

allowed the same privileges in .the outside community, as are eRC participants.

We have chosen Laumaka Conditional Release Center and Ha-t'laii State Prison

as focal points of our study.

Problem

In terms of overall impact on sos:iety, what are the relative social benefits

and costs of the alternative progr~'?

We can reasonably guess that LaLunaka is cheaper to run, if only for the

lack of extensive custody costs; but He do not 1:nmv by hmlJ much. In fact, if

protection of society from dangerous otfenders were considered, ,\'ould the cost

of security incurred at IJSP be justified? Or ''lOulcl the opportunity provided

eRC residents of competi.ng for jobs or education in the corrununity and earning

prevailing h'ages out\vcigh the risks of exposing the co;mllunity to the threat of

crime?

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tl 0LuestJ.· on:::: by" examl-n1n9.: tillo,' Q:roups of committed We at tempt to ans\'ler lese ... ~ ~ ~

folons) those 1'1ho participated in the CRC pr,ogram and those 'who did not. By

'enumerati:ng the major benefits and costs that have acc1lred to the tlvo groups)

'We obtain Cl; ,group benefit/cost ratio, an index of hm'" 'Well :resources 'Here used

from the poiDt of view of society" An alternative is economical~y efficient if

the benefits it generates exceed costs (B/C) 1).

II. Methodology

Model

What we measure is the mean social value accuri:ng to an average' offender

as he passes thr~ugh corrections and parole in approximately one case process.

This'invo1ves 1) calculating the aver.age time an individual spends. in CD

, facilities and parole, and 2) mul tiply~.ng it by the average cost and benefit

accnd:ng-to an individual in that time pe~iod. The generallnodel for total social costs or benefits per subject is,

p (S -) (T - xC·), J. ). , ).

where PCSi) = expect~d probab.ility that event/item i ,occurs per subject

T- = mean duration (in years) of event i per subject l.

Ci = mean value of event 'i per year pe~ subject, discounted or

pro j ected to FY 71- 7 2 present value_

Where T· and C- are computed on a base of all subjects in a group (e:;I.."perimental ). ).

or control), P(Sj) equals 1. Where Ti and Ci are based on only those subjects

''1ho have incurred that event, P(Si) becomes a \'leight, or e:x.-pected probability~ of

an avenlgo group subject incurri,ng that event, estimated as,

P(SJ.') :: number of individuals inoJrring event J.

number of individuals in group

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In calcllla.t~ng values for Tables 2 to 5) we have used P(Si) :: 1 for all

items except escCl;pe. Detailed derivations of values are presented in Appendix C.

Control

The 'e>-'''Pc::rimental'. group is composed of all who spent time in eRe from its

inception in 1968 to June 1972, combined. "{i th stays at other facilities. N=SS

after elimination of subjects with incomplete information. The 'control'

group consists of a random sample of those who were :in corrections at the same

timn as t~e experimentals but did not go through CR.C because either they did·

not meet CRC admission criteria or, if they did, space "las not availa~le. Thus)

controls are those without eRe. e..'<posure "lho were p,aroled duri!lg the period

July 1969 to July I, 1974, the cut-off date for data collection. CN=203)

The DiO, groups are not matched except fortuitously by the ~verage corrections

time served prior to parole. 111erefore , it is not correct to say' that what we

observe is the effect of CRC and HSP. Rather, what He observe is the estimated

'ave:r:age stream of costs and benefits that have accrued to U'lO, groups of conunitted.

fAlons 'who have undergone different combinations of CD facility programs.

- A refinement of this stLtdy sJlould incorporate stricter controls on subjects'

characteristics that may affect performance. On1y then "\dll it be possible to

make stronger statements about program differences.

. III. FINDINGS

Time Periods

Mean durations in corrections and parole of the two groups of offenders

are given in Table 1 ,md Figure 1. Total t:iJne period of our study \\as equalized

for the U'lO groups at 5.4 years. Mean dates of status change provide perspective

and were derived by computing mean parole dates for both groups ancl approximating

the ·rest through respective mean durations. For a fuller explruw,tion of tim~

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FIG. 1 . TIME FRAME

~I: ALL DATES USED ARE COMPUTED IvIEAN DATES. TOTAL Tnm OBSERVED FOR BOTH GROUPS = 5.4 YEARS.

ExpERI~mNTAL GROUP

8/22/68- - - -- -- - - - --- - -3 .17 year s • -- -- --- -- - -- - -10/ 2 3 / 71- - - -- -- - - - -2 . 23 yo a l' s - -- - - -- - -- -- - -1/16/74 i- . . / '---'-'-- -_. __ .-........ _._ .... / CD PAR~U~

CONTROL GROUP

12/2~/68-----------------3,Z8 years------~----------4/8~72M----l.78 years-----l/191,74--.34 lTs .--S/Z1/74 r I. r I

CD PAROLE CD

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lengths, including frequency charts and descriptive statistics) see .l\ppcndLx B.

Table 1

. Time Periods

, . Experimental Control .

A.verage :Mean dates Aver,age Mea.'1 dates stai of status stay of status (in years) change (in years) chanKe

Corrections pre- 3.17 8/22/68 3.28 12/27/68 parole

HSP 2.06 ,

2.82

CRC .92 -- . Other .19 .46 ,

Parole 2.23 10/23/71 1. 78 4/8/72'

Corrections post- -- .34 5/21/74 parole

~ . Total time

'1.5

.40 5.40

The aver,age experimental subject spent 3.17 years in corrections, of l~hich ~

.92 years was spent in CRC. He l'laS incarcerated on 8/22/68, paroled on 10/23/71, , "and spent 2.23 years (out of our total study'time of 5.4 years) on parole.

The average control subject spent a month l~nger in corrections (3.28 years),

about 5 months shorter on parole (1. 78 years) and the remaining .34 years

(out of our 5.4 years study time) back in corrections. He \'las imprisoned on

12/27/68) paroled on 4/8/72, ~llld re::-:incarcerated on 1/19/74. The absolute

difference between mean beginning dates of the two groups is 4 months) 5 days, \d th

the experimental group having the earlier case process starting date.

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Table 2 Cos t-]3cmefi t Anal ysis of Expel'imcntals

(Q 5%. growth/disc.ount Tate)

-COS T S

I I

Per Capita Q I Years Yearly \)

:5 TAT U S Cost Items In X Per = Distri-i . Status CaEita Per Status bution !

! i :Corrections i

I HSP HSP Accomodations 2.06 9,976 20,551 71~ I Wages for.egone 4,815 9~919 i I

4,198 10% I CRC eRe Accomodations .92 4,563 I

I CRC cs.::apes 70 64

I . .19 12,466 2,369 BO' Other KHC & OBC Accomodations '0

; Wa~es foregone 4,815 915 i

I 2.23 389 867 119J !Parole Parole supervision

I~ Community protection lost 1,743 3,887 . I TOTAL 5.40 42,770 100rs L . I

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1 BENEFITS

Per Capita ! !'J Distri-Is TAT U S !Benefit Itcms I Years Yearly ! bution in status X Per Capita ~ Pcr Status I .

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I Communi.ty protection 2.06 2,789 5,745 I 13% HSP I

I Corr~nuni ty protection 1,743 1,604 ! 13!;; CRC ! Wages e,amed .92 4,671 4,297 ! I

I Other !comrnunity protection .19 2,789 I 530 'I lr.; ,-.

d i CD accomodation lost 2.23 10,185 22,713 il 73~ fa:role Wages earned 4,815 10,737 II I

'il ! 5.40 4!.i,626 100% \ TOTAL h i .

Ratios B/C = 1. 067 B/C Corrections :; .320

B-C = $2,856 B/C Parole::: 7.036

B-C 6.7% eX 100 = i I

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Table 3 Cost-Benef.it Ana.lysis of Controls

(Q S!J. growfTl7d.lscount rate)

COS T S

Years Yearly Per Capita S TAT U S I Cos t Items in status X Per Capita = Per Status

Correctionsl

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II lprc-parole)1 ESP accomodations 9,976 28,132

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Wages foregone 2.82 4,815 13,578 -10' -28

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\6 Distri· bution

69% I-/SP escape II , !

Other KHC f, OBC accomodations 12,466 I 5,734 I

Wages fo~egone .46 4)815 I 2,215 13%

\Parole Parole supervision 1. 78 389 I 692

Icorrections

Community protection lost 2,789 I 4,964 9% - ,

(pre-parole) HSP accomodations 9,976 3,392 i

Wages foregone .34 4,815 1,637 9% !

TOTAL I II .

,I 5.40 60,316 100% I

. BENEFITS

,STATUS Years Yearly Per CapJ.ta 'I % Distri-

Benefit Items in status X Per Capita := Per Status i bution . Con'oct.ions I ~ IISP C:onuTlLmity protcction 2.82 2,789 I 7,865 - -.

Other CO~LU1i ty protection .46 2,789 II 1>283 I 4%

CD accomodation lost I ,

Parol0 '1..78 10~J.85 18,129 I -- Wagt1S eE!:rnod I 73% 4,815 i 8,571

Corrections I I

(post-p;r~io) I CommLUl i.ty protection .34 2,789 ! 948 2°' '0

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~TO'l'AL 5.40 I: 36,796 1\ 100~ I: -- -. Uatios . -

B/C ::: .610 B/C Corrections (pre-parole) ~ I

13-C =-$2:$) 520 .184

I BIC Parole a 4.721

B-C , I - X 100.:: ··39. O~ G

l'-'-'--'~'-=~~h -- ___ > -"-"'_~"'-.'r· ___ ' ..... ,~",.>-"*,- ... -"",,,,,,,,,._._,,,,_,,,.,,,~_.t ,.. ..• ___ , ______ •

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l'e-J[. -, COS T S

- ~ , Yoars Yearly

~TATUS I or tlPl. a l '0 lstrl~

. Cost Items in Status X Por. Capi ttl. :.:: Pcr Status 11 bution ~

I " I' Corrections !I

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HSP HSP Accomodation 9,976 ,;

20,551 I, I

2.06 II Wages for:egone 5)284 10,885 II 71%

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CRC CRC Accomodation .92 4,563 II 4,198 1\ CRC escape 75 II. 69 I 10%

-Other

11 I KHC & OHC accomodation .19 12,466

II 2)369 I

I 8&,

5,284 1,004 '\I

.":, II p'arole Parole supervision 42'7 952 2.23 ., '. j 11~o 1,867 I 4)16~

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TOTAL 5.40 44,191 100~.;

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BENEFITS I Yea.rs Yearly Per Capita :%Distri-

STATUS Benefit Items in status X POI' Capita. = Per Status I bution -

Corrections I HSP Community protection 2.06 2,D8'7 6,153 I 13%

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CRC Community protection .92 1)867 I 1,718 Wages earned , 5,010 4,609 13%

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I I r Other Community protection .19 2,987 568 1% I -I

CD accomoclation lost I I Parole 10,185 22,713 I

2.2.5 I Wages earned 5,284 I 11,783 i 73%

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TOTAL 5.40 I

47,544 100% ! . --

Ratios --BIC :: 1. 076 B/C Corrections ::: .334

B-C = $3,353 RIC Pm'ole ~ 0.144

B-C -c-- X 100 ~ 7.~8% ...... _ ... . _____ a_

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Table· 5

Cost-Benefit Analysis of Controls (@ 10% growth/discmmt rate)

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II COS T S

Years Yearly Per Capita !'%Distri-STATUS Cost Items in Status X Per Capita = Per Status I bution

, Corrections . (pre-parole) ESP accomoc1ation 9,976 28;132

HSP Wages foregone 2.82 5,284 14,901 69% HSP escape -9 -25

Other KHC & aBC accomodation I 12,466 5,734

! .46 Wages f01~egone 5,284 2,431 13%

Parole Parole supervision 427 760 10% Conm~ity protection lost 1. 78 2,987 5,317

Corrections (post-parole)

HSP accomodation 9,976 3,392 Wages fo~egone ~34 5,284 1,79~ 8%

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TOTAL 5.40 62,439 I 100% ,

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Years Yearly Pel' Capita 1%

Distl'i-STATUS I Benefit Items :in Status X . Per Capita ::: Per Status butior).

Con"ections

HSP Community protection 2.82 2,987 8,423 22%

Other I Community protection . 46 I 2,987 I 1,374 4% -I Parole CD accomodation lost 10,185. 18,129

Wages earned 1. 78 5,284 I 9,406 72%

Corrections I Corrnnuni ty protection (post-parole .34 2,987 1,016 2% ,

TOTAL I 5.4"0 II 38,348 II 100%

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Ratios BIC ::: .6JA B/C Corrections (pre-parole) ::;: .191 B-C::: -$'24,091 B/C Parole = 4.531

:::; -38.6% ~CC ;x: 100 .1, _______ ._ •. ____ • ___ ... _ • ...,. ___ '_' ____ "

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Benefits and Costs

Itemized costs and benefits are presented in tables 2 to 5. Detailed

derivations are sho\lln in Appendix C. Since relationships do not vary much using

either 5% or 10% as a discount/gro,\'th Tate, the discussion belm" will cOlTer

tables 2 and .3 which employ the 5% annual rate of ch~ge.

Overall benefits exceeded costs for those who ,,,ent through CRC> but the

reverse held true for those who did no~ go through CRC. BIC for experimentals

''las 1.067, for controls .610. As can be seen in tables 2 and 3, a l~rge part of

this ~ifference' is due to the eA"Per:imentals' longer parole time, shorter HSP

time, and the fact that those who underwent CRC maintained economic productivity . (earned connmmity wages) while at CRC.

While the individual ''las in corrections, the benefit. to cost ratio for

experimentals was ~ 320, for controls .184. While on parole, hml[ever; the offender

incurred more benefits ,than costs to society; benefit/cost ratio for experimentals

while on parole is 7.036, for controls 4.721.

All this would seem to imply that of the two groups of offenders, those with

eRC eA"perience were actually more productive to society (C.RC wages, longer parole)

than those 'wi thout CRC exposure (longer prison confinement 'I[i th foregone produc­

tivity, shoTter time on parole). 'The experimentals also incurred less correctional

facility accomoc1ation costs to the state, because CRC operating costs are 10weT

than those of HSP .

'Considering only those items used here, one can estimate the per year

difference in costs cmd benefits of CRC and HSP as fo11ml[s:

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13 Costs Benefits B/C

Accomodation 4563 Protection 1743 CRC:

Escape 70 lvages 4671, --.4633 6414 1.384

Accomodation 9976 Protection 2789 Escape -10 Wages lost 4815 2789 .• 189

HSP:

14781

By the above, CRC is socially lnore 'beneficia1'per individual per year by

approximately $10,148 in terms of costs and $3,6'25 in terms of benefits. Or) the

, social opportunity cost of maintaini,ng an offender in prison as opposed to CRC is

the difference in the benefit-cost ratios-or roughly $1..38-$0.19=$1.19 on

spent per year on an incarcerated offender.

A cunceptua1ly helpful way of look~ng at these differences might be to look at

Figure 2. In ~ig. 2(a), the benefit-cost ratios are plotted for pe~-year values of

CRC and HSP obtained above. Fig. 2(b) shows approximate case proc.ess benefit-

cost ratio lines for the e)"'Ferimenta1 and control groups from tables 2 and 3.

'111e dashed line at a 45'" angle to the Benefit C,ost CL"'Cis represents a benefi t­

cost ratio of 1. When correctional programs result in more efficient resource use

as possibly by the creation of more CRC's - the benefit-cost ratio lines ought to

move from the l~egion around line no to the higher ratio neighborhood of line AO. , ' ,

IV. Limitations of Analysis

Whnt this study measures are only those items shown in Tables 2 to 5 whose

values are computed in Appendix C.

There are many other items that could have been included were it desirable.

Among the values excluded from analysis are:

1) '111e per-resident value of correctional industries, which is financially

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$20 )000 --

$10,000

6414

2789

(eRC) A /

Fi&rure 2

(a) BIC = 1

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o 4,633 $10)JZ5J 14?81

$45,626

36,796

Costs

Costs

(b) B/c=l

(Experimenta~ _, _ A

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.. $20,000

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independent of the HSP opeTating b~dget.

2) Vocational cUld academic training at Hoomana School.

3) The impact of incarceration or CRG work e}..'"Perience on 'Welfare. . . PresurnablY prison incarceration 'would tend to increase, and CRC i~age

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earn~g tend to decrease, the offen4er's family's dependence on iielfare.

4) The value ~f, grounds maintenance and repair by both CRC and HSP residents. , ,

111is is a savi,ngs in custodial costs to the state, for i"hich inmates,

receive a small remuneration.

S) Resident crime in facilities which ~ght incur extra costs.

d 'ff' 14 to measure and m" some cases could be considered· The above items were ~ ~cu l.

'negligible. .. . . ,

Also, conclusions derived from com.J?ar~ng CRC and HSP facilit~es are:ba~ed.

on the assumption that the residents o£ both facilities are statis~~iCalIY

matched. Orily if we make the assumption that the exper?mental ~d control groups , ,

are comparable, can we make compa~isons about facilities as such.

Further> the measurement in this study is short~term, not 10,ng-term. Vie do , .c

not measure the long-tenn effect~ of p~ograms, but the short-r~n~e balance o~

costs to benefits. For example, it is intuitively plausible that incarcerat~on

tends to "criminalize" more than "decriminalize" a person in the 10~~ nm;

thus the immediate benefits of COTImlunity protection offered by imprisonment ma:~

be offset by the lo,ng r8;nge cost of repeated cymes ~y enhanced criminality.

HOI.;evci'; measurement of long-term effects is beyond the scope of this study.

V. Discussion

The reC'll interest of progrwn evaluation is the long-term vie\v of whether

or not eRe experience i.s a causal predictor variable in an o£fender' s beh:l,v~or

subsequent to release from cOl:recticms, that is, ,~hetheT or not eRC experience

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correlates negatively with future criminality. One approach to this problem

,';ould, be to run a multiple l~egression analysis o£ ci-.iminal behavior after correc­

tional release on several characteristic variables) one of ivhich iliOuld be eRC

exposure. "

In substance, this study does not allow us to say that CRC is more effective

tmvards rehabilitation in the long run than traditional incarceration; instead, , ,

in terms of immediate costs to society, it permits the weaker statement that

those ,vho did go thro,ugh CRC were SOCietally more "beneficial' r) during the period.

lll1.der correctional and parole custody:> than those i-lho did not. On the aver:age,

inclusion of eRC as part of correctional treatment was less costly' to, the

community by a factor of 1.067 to .610 in terms of benefits tO'costs per individual

for the same time period. "

, Whethe~ or not the ob~ainec1 benefit-to-cos't ratios would prevail if more CRC's

'~ere created would depend on several considerations. First, as mentioned earlier,

there is only indirect evidence (Shorter t:ime on parole for controls), that CRC

makes a difference in 10ng-tenn 'rehabilitation'. And we do' not knOtV' if this

evidence is due to selection' into CRC or treatment. Second, the obtained

ratios depend on the items considered in the analysis and the~T computation. If

more or felver items i'lere used, the results 1vould differ. If, for example, ,,,ages

"lere eliminated from the analysis,' the balance of facility accomodation costs to

community protection benefits would be comparable for both IISP and CRC.

CRC:

HSP:

Costs Accomoc1ation

Escape

Accomoclation

TIscRpe

4563

70 4633

9976

-10 , 9966

Benefits Protection

Protection

1743

2789

B/C 3'70

.280

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"

------:' • :1· • .~. l-

This would seem to· :imply ,that ~igh security costs at ESP are justified. l l ,

In fact, if furl0,ughs \\Tere eliminated from CRC, GRG accomodation costs r.tight we1:t

increase to provide for resident activities during the day, thereby miniilliz~g ,

co~t differen~es between HSP and eRG. ,Hm.,~ver, there "'lould be som~ psycho-socia~:

benefits to be had from smalle~ group environment~ at GRG~something not me~ured

here.

Third, the impact of inmate l~ages merits cormnent, sjnce employment contribut~

significantly to our analysis. )l~ages earned or foregone may be seen as an indivi~ I'

dual's value contribution, or lack of it, 'to society and to himself. The comnunit

as l'1ell as the individual, benefits from his productivity. One of the major

benefits of CRC is that resid,ent earnipgs partially support facility operations

through individual pa~ne~ts toward room and board and resident cook; in addition,

portio~ of earni:ngs, go toward family support, \'1hich may les-?en tfie tendency to

seek l'lelfare, and taxes. Moreover, the inta;ngible psychologicaJ. benefits of

employment are pointed out by a recent study of the Adult Furlo,ugh Center D ln

which it was fOWld tha.t,

••• the' ability to maintain employment on parole lvElS the single variable most predictive of parole success. The second most important variable "las performance in the Adult Furlough Center Program, in which one of the main goals Has to establish employment

. t' 1 11.2-prJ.or 0 gOJ.ng on paro e. . ' , .'

The ect'Homic consideration of conditional release versus incarceration

''lould seem to be that, given that the process of "treat~ng" an offender

through conditional release is societally more productivc) as shown here, is

the community subjectively '''.illing to regard the ,,,orth of immediate community

protection gained by imprisonment as bei,ng greater than the cost of sec.urity

and lost productivity? Though trcUlsgl'essions ought not to go unchecked, by incar­

cc.:rating the offender, society punishes itself as ,,,ell as the individual thr~Ltgh

2 The "<luI t furlollgh Center:' Variables Related to Successful PaTole) Social

Welfare and Development Research Center) Report ~o. 137.> September, 1974) p. iv.

I

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18

his lost productivity. If rehabilitation, of thosc ''''ho are willi!';'':]) J I) t:h~ goal , ' c;

of corrections, then conditional release - especially in its aspeCi: 'J1' dnployment -

has been shown to be, as a process" societally more !)eneficial tha:i. j;rtJirlsonment.

. Though the sLtfficien~ grounds of l~ng run effectiveness of condi tic;n;; 'J release

have not been established, there are neces.sary reasons for believ-L"1g tll:J.t if there

are yet m~y offenders who would benefit from conditional release.> tJ-J,t;H creation

of more GRe's Inerits consideration.

,"

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-I

AppendiX A

Statement of Purpose

19

Excerpted from Qperatin,g Costs, Program Budget Request Swmnary, Budget Period

1971-1973

CRG:

liThe Department of Social Services and Hous~ng established the first Conditional

Release Center on 6/17/68 in accordance i'lith Act 75, SLH 1967, Section 353.22,

Hawaii Revised Statutes, which authorized the establishment of conditional

release centers and the implementation of. work furlough programs in the state. , '

The ~egisJature in 1970 authorized the establishment of the Neiv Community Centers

BranCh of the Corrections DjYision, and the Adult Fur1o~gh Center, both to be

operational b,eginning Fl 1970-71. The role of the in-community residential

center without walls and fences is to provide links in the total reclirective

processes with the major concern~n the increase of parole success'and enllancing

the level of social functioning of the resident'-prisoners. The programs of the

Centers are designed to make the prisoners' period of commi Unent productive and , ,

meaningful to aid in the re-in~egration int? the community.

"Conditional Release Center Section: The Center, established in 1968, is, to

assist prisoners in in~egra'i::~g into the corronunity as an alte:q1ative to the,

traditional correctional trea'bnent, and to return to independent livi!lg as

quickly as feasible. The in-co:runun.i1.Y treatment program is limited to selected

setting while undergoing intensive group-oriented therapy and while still

r.laintaini,ng family and commlU1ity ties from the onset. Every resident is processed

and involvecl ill ,,,ork and/or educational furlough pl~ogrrun .. The Center is

located on state land on the fOlmer Superintendents' l'esiclences at 647 Laumaka

Street." (pRge G-93)

., ",

"

,f

, ~

20

HSP: -, to offer co~nittcd offenders those services "The HCl\.;~l.ii State Prison is mandated

are deemed necessary to assist him in becomi,ng a useful and pT.Qgrams that

h t:un' e the protection of the cOIIU11unity, both 1 ase At t e same I 1 ,

citizen on 1'0 ~ ~ . ., ' P • In conjunction . the primary, goal of. the Ha1'lall State rl.son.

immediate ultimate, is is to motivate the inmates in their own

,~th the above goal, our cuTren~ goal ,\.... '. d· from the

"'ri,d J·Jnprovement with maximtml assistance and: gUl ance self-development CU'

" entire correctional personnel',

and support _ The end T0sul t is

,. . f 11 o~~unity resources anel with the utlll za tlon 0 a c.

them fo~ adJ·ustment more adequately to prepar(~

inc;eased stre?gths and skills and; gre'ater \-lith greater a\'lareness "If themselves 1

self-de~ermin~tion upon their rele~se to the corrrnunity. ability for positive

. t of vocational and academic training, These services and progrruns conS1S' ,

dental and m,sdical services, individual Cholocrical and psychiatric services,

psy , (;> • th . b t "1· nl· ng in various skills and trades, 1· se'V"'lrlces on- e-)o r .... and: group counse l;ng ..... ) ,

sunnort and education." (page G~ 2) and re1:i gious r'J:"

~ ..

Appendix B

Time Periods

Sub j ects' l~ngths of stay in correctional facili ties cU1d parole were

derived from data gathered from prison records. The mean, median, an<i

standard deviation of lengths of stay are presented below.

Table B-1

Time Periods

Experimental Control . (N=55) (N=203)

mean mcln sd mean mdn " . Corrections, pre- 3.17 2.2 2.41 3.28 2.4 ~ole

HSP 2.06 1.2 1.52 2.82 2.0 CRC .92 .8 .44 - --

Parole 2.27 2.2 1.41 1. 78 1.4 Corrections, Eost-Earole (n=N) (n=N) (all subjects) .31 0 .73 .34 0

(subjects returned) (n=13) (n=66)

1.32 1.3 .96 1.01 .75 HSP: (n=N) (n=N) (all subjects) .30 0 .69 .31 0 (subjects returned)

(n=13) (n=66) 1.27 1.02 .90 .95 .70

21

'sd . 2.63

2.47

-1.31

.70

.89

.67

.87

, .' .

. .

The swn of mean durations dif.fered for the tw~ groups:

Corrections Parole Corrections

Total

Experimental

3.71 2.27

.31

5.75

Control

3.28 1. 78

.34

5.40

22

To control for time, the total period under study was fixed at the lesser

of the above totals - 5.4 years. Thus, the time periods for our study are

thso~ given in Table I and Figure 1.

Experimental Control

Corrections 3.17 3.28 Parole 2.23 1. 78 Corrections .34

Total 5.40 yrs 5.40 yrs

Frequency distributions of l~ngths of stay are charted on the f'ollOlving

pages. Some observations on these distributions and Table B-1:

-Nearly every distribution is positively skewed; there are proportionately

more shorter than l~nger stays. In every case the mean is larger than the

median. Thus, either the mean or the median could be used throughout to

estimate "ave-r:age" length of stay.

-The controls had higher variability in HSP stay than did experimentals

(note difference in standard deviations). The reason for this could be that

HSP holds extreme cases while those selected into CRC are smaller and more

homogeneous.

-Although we have not controlled for characteristics, there is a

,fortuitous control in that the mean stay in corrections prior to parole

is roughly equal for both groups - 3.17 yrs for c)..-pcrimental and 3.28 yrs

for control. Time s<"rvcd is at least controlled.

'.

\ I

I .

-------------- .--~------------

23

-Tho SOllrce o~ gl'oUp differences in parole performance (shorter mean time

on parole for cont:rols) is tmknO\qn. This mny refloct CRe treatment or tJ1C sclcc ...

tion process into eRG,

~There is ~ greater percen~age of the con.trol popul~ltion returning .to

corrections after parole (66/203 = 32.5%) than the experimental group

(13/S5 = 23.6%). This conicides 1'lith the longer mean pa.r'ole time of

eA~erimentals over controls.

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FREQUENCY DISTRIBlfI'ION ' 30

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FREQUENCY DISTRIBlITION OF TIME SPENT IN LAD CRC BEFORE PAROLE

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33 Appendix :C

Cost Calculations

, Table C:-l gives the actual values used in cost-benefit Tables 2 to 5 . . A.:ilOunts are converted to FY 71- 72 present value at the rates of 5% and 10% per annum, except for Corrections Division facility costs 1'lhich 'are taken to be mean FY 71-72 values.,

Table C -1

Per Capita', Cost Per Item

,- .. Grmvth/Discount Rate Values 'Converted to FY'71-72

Present Value 5% 10%

Parole wages 4,815 5,284 I

eRC wages 4,671 .' 5,010 I

Crime cost 3,669 3,935 Arrest cost 120 117 Trial cost 85 99 ,

Parole supervision cost 389 427 ;

Values derived from above~

CRC community protection 1,7n3 1,867 HSP community protection 2,789 2,987 CRC escape cost 70 75 rISP escape cost -10 -9

, ,

Mean FY n.-72 values:

HSP accomodation 9,976 CRC accomodation 4,563 KHC and OBC accomodation 12,466 Total CD accomodation 10,185

The conversion formula used ''las: value) year b Present value) year a = (1 -I- r) t

''lhere r = grol,(th/cliscount rate t ::: 'difference between year b and year a,

i. c. b-a.

• I

1. Corrections Division Facility Per Capita Costs

A three-year average yearly per capita 'was used as value at flY 71-72 present value.

the mea.1'l per capita

.Table C-2

Expenditure? for Corrections Division*

FY HSP

70-71 Expenditure 1,770,258 183 Daily Avg Pop

9,673.54 Yearly per capita 26.50 Daily per capita

1,978,235 71-72 Expenditure 181 Avg Daily Pop

10,929.47 Yearly per ca~ita 29.94 Daily per cap1ta

72-73 Expenditure 1,986,354 Daily avg Pop 213

9,325.60 .... · Yearly per capita Daily per capita 25.61

Avg (71-71) Yearly per capita 9,976.20

D(Ji1y per capita 27.33

'---

*Source: Corrections Division record i:*Est:iJnates obtained from CRC ~:~7:Inc1udes all CD facili 1;:ies

2. Parole Supervision Costs

LAU** KHC & OHC

55,800 647,280 11 57

5,072.73 11,355.78 13.90 31.11

57,800 721,279 14. 51

4,128.57 14,142.72 11.31 38.74

67,300 725,797 . 15 "61

4,486.67 11,898.31 "12.29 32.59

4,562.66 12,465.60 12.50 34.15 .

..

I CD*** f . 2,521,326

256 9,848.93

26.98 I .

2 853,3ll: , , 256

~1,145.75 30.54

2,867,724 300

9,559.08 26.18

10,184.58 27.90

. , 1 t the pr,o)' ected value Table C-3 ShONS the three-year mean year y cos , of ""hich appears in Table a-I.

Table B-3 1)er Capita Cost of Supervising a Parolee~: - .

~...!''ll Year Eel' Capita Cost 68-69 308.91 69-70 343.56 70-71 405.29

Avel'acre (oD-'lO) 352.58 i:SOUTCO: Charles T~ Araki, r.OillPl·chen~i\'e Plan of_tho noanl_ of Parolos Pardons State of }'Imofaii;, (!lonolulu, lIm·mil: JanuUl)' 5, 197.»), p. 163. ",-","-..-

and

, I

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3. Parole Wages

Table C-4 shml[s tnconverted average wages eanled by parolees. This estimate is also used for the estimate of I';ages foregone "'hile. subj ect is incarcerated.

Table C-4

Average Arumal Gross Earnings of Parolees~:

FY "

68-69 69-70 70-71

Mean (69-70)

i:Source: Araki p.164

4. eRC Wages

Average Gosss Earnings . ,

3,799 4,863 4,438

.4,366.66

35

lVages'earned at CRC is estimated by the sum of actual earnings by all CRC residents in our san~le divided by the number of subjects in our sa.mple.

~'wages sample size ~ 22,569~, 4345 per CRC subject stay

51' ,

This value, taken to be calendar year 1970 present value, is converted in Table C-l.

5. Crime Cost , ,

Crime cost is estiTJated by awards granted by the Criminal Injuries Compen­sation Commission to victims of person offenses. The ffil[ards cover medical expenses, funeral and burial expenses, loss of earning pml[er, perunicary losses; pain and suffering, and attorney I s fees. The data werc obtained from the Criminal Injuries Compensation Annual ~'port~ for calendar years 1969, 1970, 1971.

Since the average a~vard seems intuitively to underestimate the total social cost of crime, '\I[e use the mean a\l[ard for the more serious crimes: murder, manslaughter, rape, and aggravated assault and battery. The mean a\~'arcl is projected in Table C-I. A gross approximation of the value of crime is estimated

as fol1moJs:

Total Awards ::I $430,028.57 Nwnber of cases :: 126 Average award ~ $3,412.93 (moan year ~ 1970)

. " .j

36

6. Arrest Cost

'Th.o cos~ of appre~ending an offender, or escapee, is estimated by the total operatlng expendlture of the Honolulu Police Department divided by the total number of reports and complaints received.

Calendar Year

1971

1972

1973

Table C-5

Police Arrest Cost*

(a) Operating Expenditures* (b) Total Reports & Complaints* (c) Arrest Costs (a)/(b)

(a) Operating Expenditures:'::

((b) Total Reports & Complaints* c) Arrest Costs (a)/(b)

(a) Operating Expenditures* (b)Total Reports & Complaints* (c)Arrest Costs (a)/(b)

3~yr average (1972)

20,170,428.61 171,831.00

117.39

21,690,191. 72 170,391. 00

127.30

24,488,230.26 196.962.00

124.33

123.00

i:SourcC: STATISTICAL REPORT, Honolulu Police DepartJnent, 1973.

This est~at9 of ar~'est C?st ~sslune~ that all police work goes toward support of crnne report ~nvest~gat~ons; ~t Ineasures the process leadina to arr~1st more than the act of arrest itself. This may overestimate sin~e the

.. pollce engage in many non-crime activities, such as directincr traffic ceremonial duties, traffic accident investigations etc. Ne~ertheles~ the cstjJnate is us~:Eul, if w~ assume that at least a m~jor portion of poli~e time goes to\V'ard crltTle detectlOn, prevention, and apprehension.

7. Trial Cost

. ~'ria1 cost ~s. estimated as the total court and jury e)..'}Jenses of all state ClrClll t courts (h v:Lded by the total caseload terminated for FY 68- 69, as given bolo\V'. This value is converted in Table C-l.

..

" .

!I •

"

"

37

Table C-6

Circuit Court Trial Cost*

FY 68-69 Case10ad Termi~ated I Expenditure

1st Circuit Court ' 19,396 i 927 , 652 .~62-Jury Trial Expense 260,681.93

2nd Circuit Court

'\

1,649 129,031.52 Jury Trial E.'Cpense

. 22,919.66

3rd Circuit Court 1,756 '235,250.93 Jury Trial EA~ense 20,778.41

5th Circuit Court' 554 100,338.91 Jury Trial Expense 5,663.42

.. Total 23,355 1,702,317.40

Averaae = Expenditure 72.88 Terminated Caseload ,0

,

*Source: ANNUAL FINAl'JCIAL REPorT, STATE OF. HAWAII, DEPARTME1'lT OF ACCOUNTING AND GENERAL SERVICES, FY 68-69, and ANNUAL REPORT', TILE JUDICIARY, STATE OF HAWAII, FY 68-69. '

8. Community Protection . . .. The benefit of community protection derived from placing an individual

under correctional, custody for one year is estimated as the value of crime' costs that an offender might have ;incurred were he free, ,or), .

Community Protection = (Propensity to crime) x (crime cost + arrest cost + trial cost).

(a) Evidence for'an offender'S tendency to commit a crime if free is taken to be the parole time prior to reincarceration for those subjects l·,ho are returned to prison.

lix'}Jerbnental group mean parole 'time before reincarceration = 2.21 yrs. Control group lnean parole tbne before reincarccration = 1.38 yrs.

TIle propensity of an individual to commit a crime in one year if, free is, therefore, the inverse of parole time before reincarceration.

1 E2I.'}Jerimental ruIDual propensity to crime =-2:2.[' = .45 Control armual propensity to crnne = 1 .

1.38 = .72

• I # ...

• t " •

, ' 38

(b) With the converted values of Table C-l, the value of commLlIlity protection per year becomes:

(a) 5% projection/discount rate ~~erirnental: .45 (3669 + 120 + 85) = 1743 Control: .72 (3669 + 120 + 85) = 2789

(b) 10% projection/discount 'rate Experimental: .45 (3935 + 117 .,. 97) = 1867 Control" .72 (3935 ... 117 + 97) = 2987

(c) In cost-benefit tables 1 to 4, we' have assigned the experimental group community protection value to CRC and the control group value to HSP and KEC and OHC, to account for program differences.

9. Escape Cost

Ideally, ",e ought to measure the escape costs of D'lO groups, exper:imentel and control. But, since ,~e partially focused on CRC and HSP program differences, we measured escape costs for the two facilities"CRC and HSP.

Generally, escape cost per individual is estimated to be the probability that he will escape times the fixed cost of escape) plus the probability that he will commit a felony on escape times the variable cost of crime ,(attributed' . to crime), plus the probability of escape times the difference beu~een community protection foregone and facility accomodation cost foregone.

In notation,

Escape Cost=- peE) [FC]+P(EtlC) [VC]+P(E) [T(CP-AC)J,

peE)::: expected probability of escape . P(EnC)~ expected probability of felony on escape, a subset o~ P(~)

where

FC::: fixed cost of escape, namely, arrest cost VC= variable cost of escape, namely, crime cost and trial cost T= mean escape time per escapee . . CP= conmlmity protection foregone on escape' AC= facility accomoclation cost foregone 011 escape

'1110 above equation applies to HSP. For CRC, ,~e assume that a CRC escapee quits his cOlTUlluni ty job '''hi Ie on escape; so escape cost is increased by a weighted W ::: CRC wa.ges foregone.

ID..-perimental Escape Cost = peE) [FC] +P(EI\C) [VC]+P(E) [T(CP+W-AC)].

Derivations of expected probabilities and mean years on escape are given in Table C-7.

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Table C-7

CRG and HSP Escapes

CRG HSP FY 68-69 to 71-72

71 863 (1) Gross population

(total individuals processed) . 5 19

(2) Number of Escapes

(3) Numbe~: of lEscapes with felonies corrrrnitted 1 2

durl:ng ", escape 925*

Total numbe;r of days on escape . .119 ,,(4)

.0704 .022 ,

P(E) = rzr I

lIT .014 .00231 P(BlC) = (3)

, . , . ~ - (4' -!- .0652 .1334 .

365 , Mean years on escape ~ m .. ,

-. . 1 da s accounhng for more them half the

*One subject remained ?n escape f~r 5;SSlYYi~c~eaSingthe mean tDne on escape for total number of days Oil escape an gr , the HSP sample.

Computations of escape cos ts are shmm belm'!:

@5% ,~~~~ (.022) (120) + (.00231)· (3669+85) + (.022) ( •. 1334) (2789-9976) =2.64 + ~.67 - 21.06 . . = -9.75 . ' . CRC: (.0704) (120)+(.014) (3669"!"85)+(.0704) (.0652) (1743, +4671-4563) =8.448+52.556+8.496. . =69. SO

@10% t~~~e (.022) (117)+ (. 0023'1) (3935+97)+ (. 022) (.1331~) (2987 --:9976) =2.57+9.31-20.51 =-8.63 .

CRC: (.0704) (117)+(.014) (3935+97)+ (. 0704) (.652) (1867+5010-4563) , =8.237+56/448+10.622

=75.31

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References

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Baumol, Wil1imil J., "On the Discount Rate for Public Proj ects," Havem~ et,il, Public li~penditurcs and PoliSr Analysis, 273-290., ,

Cobern, Morris, "Some ]'lanpm'ier Aspects of the Criminal Justice System" Crime and Delinquency, April 1973, 19(2): 187-199.

Correctional Economics Center of the American Bar Association, Cost-Benefit Anal sis: Th'r€le A lications to Corrections ... Probation Subsidy, Diversion, TIiilplo}'!i\cnt. as lngton, D. '.: May, 19' I. •

Glaser, Daniel. Routizinmg Evaluation: Getting Feedback on Effectivenes·s of Crime and Delinquency Programs, National Institute of Mental Health Center xor Studies ~f Crime and ,Delinquency, DI-IEN Publi~ation No. (HSM) 73 -9123 (1973).

Hann, RQbcrt G., "Crime anc1 the Cost of Crime: M Economic Approach," .. roul'nal of Research in Crime and Delinquency, July 1972, 9(2): 12-30.

Haveman, Robert H. & JUlius MUl'golis, ed. Public E:x .. penditures and Policy hnalysis Markhrun Publish:i:ng Company, Chic:ago: 1970., .

Niskooen, William A., Arnold C. Harberger, Robert H. Haveman, Ralph Turvey', & Richard Zeckl~ausereditorsl Benefit-Cost and Polio/Analysis 1972, Aldine Publishing Co., Chicago: 1973. . .

, Ochs, JaCk, Discount ~~tes for Public Investment Decisions, Institute for Urban and Regional Studies, Washington University, St. Louis, Missouri, October 196~.

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Singer" Neil M." liTho Value of Adult Inmate :ManpOi'ler" Correct~onal Economic Analysis Series" Novehlber 1973.

Social Welfare Development and Research Center. The Adult Furlough Center: VurHlbles Related to Successful Parole. Report No. 137. September, 197ir.

Tl'opmnn, John E. & Karl H. Gohlke. ' "Cost/Benefit J\nalysis: TOivurd Co:nprehcnsive Plmming in the Cl'imlTial·a~t~tice System," Crime ~U1d Delinquency, July 1973 1!)(:~) : 315-322. 'd' .. ,,;' -:y " • t·,'

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