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Public Safety &
Corrections
Corrections Services ![](images/appropriation-cs.gif)
Administration
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$39,123,471
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Phelps
Correctional Center
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$16,297,542
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Louisiana
State Penitentiary
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$97,084,505
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Avoyelles
Correctional Center
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$19,179,862
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La.
Correctional Institute for Women
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$16,263,166
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Winn
Correctional Center
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$16,248,509
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Allen
Correctional Center
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$16,272,312
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Dixon
Correctional Institute
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$27,896,559
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Work
Training Facility — North
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$7,309,340
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Hunt
Correctional Center
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$40,665,569
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Wade
Correctional Center
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$29,313,744
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Washington
Correctional Institute
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$20,861,549
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Adult
Probation and Parole1
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$29,906,483
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Office
of Youth Development
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$127,671,308
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Adult
Community-Based Rehabilitation
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$2,692,996
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1Plus
$11,949,000 tied to issuance of Louisiana Correctional
Facilities Corporation Lease Revenue Refunding Bonds, Series
2002.
Corrections Bond Refinancing
- As mentioned above, $11.9 million in funding for 259
positions in Probation and Parole will be realized due to a
reduction in debt service if the Louisiana Correctional
Facilities Corporation can complete a sale of Corporation
Lease Revenue Refunding Bonds in FY03.
- The bond sale was approved by the State Bond Commission on
June 20, 2002.
- As of the August meeting of the Joint Legislative Committee
on the Budget, Corrections indicated the Department was having
trouble obtaining insurance for the bonds. Thus, they have not
yet been issued.
- When the bonds are finally issued, a BA-7 will be submitted
to the Joint Legislative Committee on the Budget for approval
of the funds and associated T.O. of 259 positions for
Probation and Parole.
- The situation creating the need to issue this bond sale is a
complex one.
- The Department liquidated two unused parcels of land
belonging to the Louisiana Correctional Facilities Corporation
for the purpose of using the funds to match federal grant
money for prison construction and maintenance. These two
parcels of land are part of an original bond issuance in 1986
(refinanced in 1993), which included a total of five parcels
of land. Correctional facilities were built on three of the
five parcels, which has left the two parcels in question.
Corrections currently leases these parcels, (one in Union
Parish, one in East Carroll Parish), for agricultural purposes
and uses the proceeds to offset lease payments made to the
Correctional Facilities Corporation.
- The Louisiana Correctional Facilities Corporation sought to
issue revenue refunding bonds not to exceed $45 million for
the purposes of defeasing the bonds issued in 1993, thus
allowing the two vacant parcels of land to be freed from their
current status as security for the bonds. This refunding
allowed for the defeasance of the 1993 bonds by paying the
costs of issuance of the bonds and funding an escrow fund, and
including any bond insurance policy premium and any debt
service reserve policy. This refunding increased debt service
for Corrections because the 1993 bonds cannot be prepaid. The
additional debt service time period has been set at five years
beyond the original term of the 1993 bonds, to 2008.
Corrections will repay the debt service on the refunded bonds
from rental payments made to the Louisiana Correctional
Facilities Corporation. This action will effectively reduce
the annual debt service payments from $17 million to $5
million, thus freeing up approximately $12 million to be used
to fund the Probation and Parole positions mentioned above.
- Corrections anticipates the sale of the two vacant parcels
of land will bring approximately $3 million. This money will
be used to match federal funds at approximately a 10:1 rate,
thus bringing in about $30 million in federal grant money.
This money will be used for a variety of Corrections projects,
particularly the skilled nursing component at Elayn Hunt
Correctional Center. It should be noted that the federal
VOITIS (Violent Offender Incarceration Truth In Sentencing)
funds Corrections seeks to match will expire in two years,
thus the necessity of the Department obtaining liquid funds as
soon as possible.
Inmate Population
- As of April 2002, Louisiana had approximately 35,840
adult inmates. Of this total, 19,964 were being held in state
facilities and 15,873 were being held in local jails.
- Sheriffs' Housing of State Inmates will no longer be in
the Department of Corrections budget from FY03 onward (It has
been moved to Schedule 20 - Other Requirements by the Division
of Administration). The program was appropriated $144,921,284
in HB1 for FY03. This amount is approximately $8.7 million
under-funded due to the fact that projected population
decreases from sentencing reform legislation passed during the
2001 Regular Legislative Session has yet to be realized. This
funding was not restored during deliberation on HB1, although
$472,949 extra was appropriated for 71 work-release beds at
the Lafayette Community Correctional Center.
Correctional Officers' Pay
- Approximately $16.8 million was provided in FY02 for a
pay raise for prison guards and probation and parole officers.
This pay raise has been annualized for FY03, plus additional
money for merit increases for FY03.
The Tallulah Situation
Background on Swanson Correctional Center for Youth -
Madison Parish Unit (formerly Tallulah Correctional Center for
Youth)
- The Louisiana Department of Corrections took over
operation of Swanson-Madison on Sept. 25, 1999, after several
years of allegedly incompetent management by the private
management company, investigations by the U.S. Department of
Justice, and negative public outcry about conditions at the
institution. The facility had first opened its doors in 1994.
- In FY 01, the Legislature reduced the appropriation for
Swanson-Madison by $400,000, which eliminated funding for
inflation on debt service payments (Total FY 01 budget - $20
m.). In FY 02, the Legislature reduced the appropriation for
Swanson-Madison by $1 million. For FY 03, the budget for
Swanson-Madison was held at its FY 02 level prior to the $1
million cut (Total FY 03 budget - $17.2 m.).
- It currently costs the state $115.49 a day to house a
juvenile offender at Swanson-Madison. Of that total, $23.19 is
spent to cover lease payments for the facility, and $92.30 is
spent for operational costs.
- As of May 30, 2002, there were 371 juvenile offenders
housed at Swanson-Madison.
- The debt service paid on Swanson-Madison by the state is
approximately $3.2 million per year. The debt service on the
facility was refinanced in 1997 at $32 million for 20 years.
Corrections indicates that approximately $26 million is in
reserve on this refinancing. If the state were to buy the
facility outright at $26 million, Corrections estimates it
would cost the state $2 million a year, which is $1.2 million
less than the current annual debt service payment.
Recent Action
- During the 2002 Regular Legislative Session, the
situation involving Swanson Correctional Center for Youth -
Madison Parish (formerly the Tallulah Correctional Center for
Youth) Unit was the cause of much debate on both sides of the
Capitol.
- In the House Appropriations Committee, approximately
$17.2 million for Swanson-Madison was cut from HB1, and
transferred to another portion of the Office of Youth
Development's budget. Under the House Appropriations Committee
plan, the $17.2 million was to be used for relocation expenses
for the juvenile offenders housed at Swanson-Madison. During
action on the House floor, however, this money was restored to
Swanson-Madison to be used for housing juvenile offenders. The
capacity at Swanson-Madison is 408 juvenile offenders,
although the facility is rarely filled to capacity.
- Once HB1 crossed over to the Senate, the Finance
Committee considered re-cutting Swanson-Madison from HB1, but
ultimately rejected the idea largely due to differing reports
on how long it would take the Department of Corrections to
safely relocate the juvenile offenders currently in
Swanson-Madison (some scenarios called for temporarily
relocating some of the juveniles into segregated areas of
adult facilities, an act which could invite scrutiny by the
Federal government); whether or not Corrections would need to
build new cell blocks at existing institutions; and whether or
not juveniles currently housed in other state facilities would
need to be moved to make room for transferees from
Swanson-Madison.
- Another complication in the ongoing deliberation
concerning Swanson-Madison was the threat from some rating
agencies to lower the state's bond rating if it failed to
appropriate funds for Swanson-Madison. Most of this
controversy is based upon a clause in the contract between the
Department of Corrections and the Town of Tallulah and
Trans-American Development Associates, Inc. This clause seems
to indicate the contract for the facility could be terminated
if the Legislature ceases its funding. The rating agencies
maintain that the state should honor its contractual
obligations, even if the contract for the Tallulah facility is
regarded as a "bad deal" for the state by some,
because the debt service on the facility would still be
outstanding, leaving the bonding agencies and insurers holding
the bag. The rating agencies have threatened to lower the
state's bond rating if the Tallulah contract is terminated.
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