Financial Contingency Planning

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Financial Contingency Planning: Sources of Funding
AJS/522
May 12 2014
Adam Eaton

Financial Contingency Planning: Sources of Funding
California has the largest prison population in the United States and some countries around the world. For over 40 years, the incarceration levels have risen. The prison rates have risen 700 percent since 1970, today it is estimated that one in 100 adults are incarcerated. Who pays the bill for this large increase, tax payers have and will continue until the Department of Justice and government have a solid plan to reduce the overwhelming criminal justice deficient. The taxpayers are not only paying to house the prisoners but to feed them and all their medical needs. One plan that was
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A concern of the counties is funding, with the influx of offenders they worry how the communities will afford the large amount of people (Krisberg, 2011). Prison bonds are a fixed income security called lease revenue bonds (LRBs). These bonds are used to finance prisons. There are different types of bonds, traditional revenue bonds and lease revenue bonds. Traditional revenue bonds help repay the debt, the down side to these bonds is prisons do not generate revenue. The state treasury had to figure out how to create them, their solution was to have a private agency build the prison and then leases it to the state. The state takes money from one entity to pay another, a lot of the time it is taken from the general fund. These bonds are also tax except. The downfall to these bonds is the state can raise taxes to repay these obligations (Anderson, 2014). California has the largest prison population in the United States. Some of the questions asked about reducing the population are will this alter rates of incarceration, probation, supervision, and community programs. The state was giving a grant totaling $650.000 dollars from the National Institute of Justice (NIJ), the James Irvine Foundation, and the Public Welfare Foundation; this grant funded the Stanford Criminal Justice Center (SCJC) to conduct the research. The SCJC was asked to effectively help California undertake and assess the realignment. This research this grant will provide will not only
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