Newsom closed 4 prisons and trimmed payroll. Corrections spending is still over budget

By Cayla Mihalovich, CalMatters

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Some of the red ink in California’s budget deficit is coming from unplanned spending in state prisons, according to a new report from the Legislative Analyst’s Office.

The California Department of Corrections and Rehabilitation is on track to exceed its budget by roughly $850 million over three years despite recent cuts that include four prison closures and some labor concessions that trimmed payroll expenses. The state budget included $17.5 billion for prisons this year.

The office attributed the corrections department’s shortfall to both preexisting and ongoing imbalances in its budget. The analyst’s annual fiscal outlook projected a nearly $18 billion deficit for the coming year, which follows spending cuts in the current budget.

The corrections department last year ran out of money to pay its bills. In May, it received a one-time allocation of $357 million from the general fund to cover needs including workers’ compensation, food for incarcerated people and overtime. 

Democratic Sen. Scott Wiener of San Francisco in a June 17 letter to the Department of Finance said he was “shocked and disappointed that (the corrections department) overspent its budget by such a significant amount” while the state faced a $12 billion general fund shortfall that resulted in cuts to key health care and social service programs. 

“These were dollars that could have been used to provide basic services to some of our most underserved communities,” wrote Wiener. “While this year’s budget included measures requiring departments to ‘tighten their belts’ and reduce state operating expenses by up to 7.95%, (the corrections department) did the opposite, and overspent by nearly three percent.”

Without having any new dedicated funding to align its actual costs with its budget, Wiener warned, deficits “will likely persist” and put additional pressure on the general fund in years to come.  

That’s despite Gov. Gavin Newsom’s attempts to save the state money through prison closures. Newsom in May moved to close the state prison in Norco in Riverside County next year, the fifth prison closure under his tenure. 

Newsom’s administration estimates it saves about $150 million a year for each prison closure, which lawmakers and advocates regard as the only way to significantly bring down corrections spending. A spokesperson for Newsom’s Finance Department declined to comment on the analyst’s projection. Newsom will release his next budget proposal in January.

“We are allowing wasteful prison spending to continue while Californians are being told to tighten their belts and brace for deep federal cuts to core programs,” said Brian Kaneda, deputy director for the statewide coalition Californians United for a Responsible Budget in a statement to CalMatters. “We are spending millions on prisons that could be safely closed. That is government waste, not public safety.”

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.

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