Fiscal Note
BILL # SB 1304 TITLE: home arrest; electronic monitoring
SPONSOR: Kaiser STATUS: Senate Engrossed
PREPARED BY: Geoffrey Paulsen
Description
The bill would create a home arrest program in the Arizona Department of Corrections (ADC). An inmate sentenced for
certain non-serious offenses would be released to home confinement and electronic monitoring under certain conditions.
If a crime victim opposes the inmate's release to the home arrest program, the Board of Executive Clemency (BOEC)
would conduct a hearing to determine eligibility. ADC would be responsible for supervision during home arrest.
Estimated Impact
We estimate that the bill would initially increase ADC's costs by $2.6 million in FY 2024, $5.1 million in FY 2025, and $4.1
million ongoing beginning in FY 2026. Beginning in FY 2026, ADC estimates that the inmate population could be reduced
by (1,877) inmates. Once this population reduction is realized, the bill could result in much greater offsetting savings to
ADC by adjusting health care spending, closing a state prison, or ending a private prison contract. We estimate the net
savings once fully implemented could be up to $(40.6) million per year in the ADC budget instead of the $4.1 million cost.
While we expect the bill will generate savings to the state in the long run, this estimate should be considered speculative,
as the actual savings will depend on decisions made by the Executive and Legislature in future budgets.
BOEC estimates that the bill would require 6 additional board members and 13 support staff at a cost of $2.7 million and
one-time costs of $2.2 million.
Analysis
The bill would create a new home arrest program for existing and future inmates sentenced for specified non-violent
offenses, such as drug offenses, trespassing, burglary, theft, and fraud. The bill would also restrict inmates from
participating who have a previous conviction for a dangerous crime against children and those with violent disciplinary
infractions during incarceration. Inmates would be eligible for release to home arrest 18 months prior to their original
release date as long as they have completed 1 year of their sentence.
The program would begin eligibility starting with inmates who are within 6 months of their release on December 31, 2023.
Inmates within 12 months of their release would be eligible on March 31, 2024, and those with 18 months remaining
would be eligible starting on June 30, 2024. Once on home arrest, the bill would require inmates to meet certain
conditions including paying a monthly supervision fee and an electronic monitoring fee.
As of February 2023, ADC reported an inmate population of 33,745. We estimate approximately 8,700 inmates are
serving sentences for offenses eligible for home release, although any inmates with violent disciplinary infractions during
their incarceration would not be eligible for the program.
(Continued) - 2 -
Due to the bill's retroactivity, ADC estimates that the home arrest population would be 2,497 in FY 2024. ADC estimates
the population would decline to 1,485 in FY 2025 as the initial surge of eligible inmates is released and complete home
arrest. In the long run, ADC estimates the population would be 1,877 beginning in FY 2026. ADC's analysis did not
address the offsetting revenue from supervision and electronic monitoring fees, or the savings from no longer housing
these inmates. We made some simplifying assumptions to account for these impacts.
The bill would require 1 corrections supervisor for every 25 individuals in the home arrest program. ADC estimates the
staffing cost would be $7.2 million per year. Beyond staff costs, we estimate other operating costs for this population
would be an additional $1.4 million annually.
The bill allows ADC to charge inmates on home arrest a supervision fee to offset the department's cost of operating the
program. The amount of the fee is to be determined by BOEC to offset the cost of supervision. Under current law,
individuals released to community supervision pay a $65 monthly supervision fee. If BOEC were to set the fee at $65, we
estimate ADC could receive offsetting revenue of $1.9 million in FY 2024, $1.1 million in FY 2025, and $1.5 million
beginning in FY 2026.
In response to a similar bill during the 2021 Legislative Session, ADC provided an estimate that the cost of electronic
monitoring was $3.20 per day. We estimate this would cost about $2.9 million in FY 2024 and reduce to $2.2 million
beginning in FY 2026. ADC also previously reported that that 55% of inmates released to community supervision were
able to pay the fees. Assuming this same rate, ADC could generate fees of $1.6 million in FY 2024, $0.9 million in FY 2025
and $1.2 million beginning in FY 2026.
The bill would also require drug and alcohol testing for certain inmates and would allow ADC to charge a fee for these
costs. The cost of drug and alcohol testing will depend on the individual needs and mandated conditions of the inmates
under home arrest. We are not able to estimate this cost in advance but believe any net impact on the department would
be minimal.
ADC would also achieve savings due to housing fewer inmates. At a minimum, ADC would save the marginal food and
non-health care related costs such as clothing, bedding and inmate programs, which ADC reports is currently $5.92 per
day, or about $2,200 per year. Based on ADC's population assumptions, we estimate these savings would be $(5.4)
million in FY 2024, $(3.2) million in FY 2025, and $(4.1) million in FY 2026.
Combining the costs of supervision and electronic monitoring with offsetting fee revenue and the marginal food and non-
health care costs would generate net costs of $2.6 million in FY 2024, $5.1 million in FY 2025, and $4.1 million beginning
in FY 2026. (See Table 1 for a full breakout of costs and savings estimates.)
As discussed above, ADC estimates the inmate population could be significantly reduced in the long run. This reduction
would allow the department to achieve much greater savings than the marginal housing costs, by reducing costs of the
health care contract, closing a state prison, or ending a private prison contract. Instead of the net costs discussed above,
we estimate this net savings could be as much as $(40.6) million once the population stabilizes in 3 to 5 years. This
estimate includes program costs of $10.9 million, offsetting revenue of $(2.7) million and bed closure and health care
related savings of $(48.8) million. The ultimate level of savings will depend on future budget decisions. This larger
estimate assumes the elimination of the associated existing correctional officer staff and inmate health care spending. If
the Executive and Legislature decides to reallocate some of the existing correctional staff to other facilities, the savings
would be lower.
BOEC also provided their estimated fiscal impact of the bill. BOEC estimated that the bill would require 3,621 additional
hearings per year, compared to their caseload of 1,817 hearings in FY 2022. To handle this increase, BOEC estimates it
would need 6 additional board members and 13 additional staff positions at a cost of $1.7 million per year. In addition to
the staff costs, BOEC reports other ongoing operating expenses (such as rent, information technology services,
equipment) would be $1.0 million. Finally, BOEC estimates it would require one-time funding to add 3 hearings rooms,
additional board member and staff office space at a cost of $2.2 million.
(Continued) - 3 -
Table 1
Home Arrest Program JLBC Staff Cost Estimate
Year 1 vs Year 3
1/
FY 2024 FY 2025 FY 2026
Estimated Home Arrest Population (at full
implementation)
2,497 1,458 1,877
($ in M)
Amount Amount Amount
ADC Costs
ADC Supervision Staff 7.2 7.2 7.2
ADC Other Operating Costs 1.4 1.4 1.4
ADC Electronic Monitoring 2.9 1.7 2.2
Cost Subtotal 11.6 10.4 10.9
ADC Savings
Marginal Housing Savings (5.4) (3.2) (4.1)
Supervision Fee Revenue (1.9) (1.1) (1.5)
Electronic Monitoring Fee Revenue (1.6) (0.9) (1.2)
Savings Subtotal (8.9) (5.2) (6.7)
Net ADC Cost (No Bed Closures/Medical Contract) 2.6 5.1 4.1
2/
BOEC One-Time Costs 2.2 - -
BOEC Ongoing Costs 2.7 2.7 2.7
____________
1/ Numbers may not add due to rounding.
2/ In 3 to 5 years, ADC could instead generate $(40.6) million in annual savings due to a reduced prison population. This amount includes $10.9
million in ADC program costs, $(2.7) million in offsetting revenue from supervision and electronic monitoring fees, and $(48.8) million by
reducing cost of the health care contract, closing a state prison, or ending a private prison contract.
Local Government Impact
None
4/13/23