By James J. Stephan

BJS Statistician

Correctional authorities spent $38.2

billion to maintain the Nationís State

correctional systems in fiscal year

2001, including $29.5 billion specifically

for adult correctional facilities. Day-today operating expenses totaled $28.4

billion, and capital outlays for land, new

building, and renovations, $1.1 billion.

The average annual operating cost 

per State inmate in 2001 was $22,650,

or $62.05 per day. Among facilities 

operated by the Federal Bureau 

of Prisons, it was $22,632 per inmate,

or $62.01 per day.

In a followup to a study based on FY

1996 data, this report presents unique

statistics on the cost of operating State

prisons in FY 2001. Information was

obtained by extracting corrections data

from each Stateís responses to the

U.S. Census Bureauís annual Survey

of Government Finances. Item categories were standardized across jurisdictions, and reported figures were

verified with State budget officials.

Expenditures are the total amounts

paid for prison operations, including

interest on indebtedness. Figures are

net of amounts derived from revenuegenerating activities such as farm and

industrial production and services.

$ Prison operations consumed about

77% of State correctional costs in FY

2001. The remaining 23% was spent

on juvenile justice, probation and

parole, community-based corrections,

and central office administration.

*2001 constant dollars.

$ State correctional expenditures

increased 145% in 2001 constant

dollars from $15.6 billion in FY 1986 

to $38.2 billion in FY 2001; prison

expenditures increased 150% from

$11.7 billion to $29.5 billion.

$ Excluding capital spending, the

average cost of operating State

prisons in FY 2001 was $100 per U.S.

resident, up from $90 in FY 1996.

$ Outlays for new prison construction,

renovations, equipment, and other

capital account activities amounted to

less than 4% of total prison expenditures in most States.

$ Spending on medical care for State

prisoners totaled $3.3 billion, or 12%

of operating expenditures in 2001. 

Highlights

States spent $29.5 billion for prisons in 2001, about a $51⁄2 billion

increase from 1996, after adjusting for inflation 

1986 1989 1992 1995 1998 2001

$40

$30

$20

$10

0

Total correctional expenditures

Prison expenditures

in billions (2001 constant dollars)

State expenditures

1986 11.7 49

1991 19.2 76

1996 24.0 91

2001 $29.5 $104

Each year

per U.S.

resident 

Total 

(in

Year billions) 

 State prison costs* 

$ State prison costs per U.S. resident

more than doubled between 1986 

and 2001.

U.S. Department of Justice 

Office of Justice Programs

Bureau of Justice Statistics

Special Report

State Prison Expenditures,

2001

June 2004, NCJ 202949
The increase in cost of corrections

outpaced the cost of health, 

education, or natural resources

State spending for corrections

increased from $65 per resident in

1986 to $134 in 2001 (table 1). Per

capita expenditures for State prison

operations alone rose from $49 

in 1986 to $104 in 2001. 

At an average annual increase of 6.2%

for total State correctional spending

and 6.4% specifically for prisons,

increases in the cost of adult incarceration outpaced those of health care

(5.8%), education (4.2%), and natural

resources (3.3%).

Although correctional spending grew 

at a faster rate than many other State

payments between 1986 and 2001, it

remained one of the smaller cost

items. For example, the outlay for

education, at $374.5 billion, was nearly

10 times larger, and that for welfare, at

$260.3 billion, was nearly 7 times

larger.

Selected State expenditures, FY 2001: 

Education $374.5 billion

Public welfare 260.3

Health 43.7

Total corrections 38.2

Prisons 29.5

Natural resources 17.3

State correctional expenditures include

the cost of operating prisons and

related institutions. Such institutions

are reformatories; prison farms;

centers for the reception, evaluation,

and classification of inmates; and

correctional facilities exclusively for the

criminally insane or for the treatment 

of drug and alcohol addiction. 

State correctional expenditures are

primarily for operating adult facilities.

Other spending pays for juvenile

correctional activities, adult parole

boards and programs (including court

programs), and correctional administration not associated with specific

penal institutions.

States spent $29.5 billion 

on prisons in fiscal 2001

State prison expenditures totaled $29.5

billion in fiscal year 2001. Adjusted for

inflation, this was approximately $5.5

billion more than was spent in FY 1996.

California reported the largest prison 

expenditure, $4.2 billion, and North

Dakota the smallest, $26.8 million.

States with the largest prison expenditures: 

California $4.2 billion

New York 2.8

Texas 2.3

Michigan 1.6

States with the smallest prison expenditures: 

North Dakota $26.8 million

South Dakota 37.5

Vermont 46.1

Wyoming 56.2

As a non-State activity, correctional

spending by the Federal Bureau of

Prisons (BOP) was outside the scope

of this report. However, outlays for its

operations in FY 2001 amounted to

$3.8 billion, or about 11% of the

Nationís prison expenditure.

Operating costs averaged $22,650

per inmate in fiscal year 2001 

State prison operating expenditures

totaled $28.4 billion in fiscal year 2001

(table 2). This total, divided by the

number of prisoners, produced a

nationwide average annual operating

cost per inmate of $22,650. Adjusted

for inflation, the equivalent figure in

1996 was $22,515.

2 State Prison Expenditures, 2001

Sources: U.S. Census Bureau, Survey of State Government Finances, 1986-2001 editions; 

U.S. Census Bureau, Current Population Estimates and Projections, 1986-1996; and unpublished data from 2001 Current Population Estimates. Bureau of Economic Analysis, chain-type

price indexes for gross domestic product, 1959-2002, in Economic Report of the President, 

table B-7, February 2003.

*Based on total expenditures.

6.2% 6.4% 5.8% 4.2% 6.4% 3.3%

Average annual

percent change,

1986-2001*

2001 134 104 154 1,315 914 61

1996 119 91 141 1,143 849 56

1991 98 76 109 998 632 52

1986 $65 $49 $78 $842 $425 $44

Fiscal year corrections Prisons Health Education welfare resources

Total Public Natural 

State expenditures as costs per resident

Table 1. Annual per capita costs, in 2001 constant dollars, 

for selected State expenditures, 1986-2001
States with the highest reported average 

annual operating costs per inmate:

Maine $44,379

Rhode Island 38,503

Massachusetts 37,718

Minnesota 36,836

New York 36,835

States with the lowest reported average 

annual operating costs per inmate:

Alabama $ 8,128

Mississippi 12,795

Missouri 12,867

Louisiana 12,951

Texas 13,808

The average operating cost to incarcerate one inmate in the Federal Bureau

of Prisons system during FY 2001 was

$22,632. 

The $28.4 billion State operating cost,

divided by the U.S. resident population,

resulted in a nationwide average

operating expenditure of $100 per

person. The highest costs per resident

were recorded in the District of Columbia ($251), Alaska ($243), and

Delaware ($204). The lowest costs per

resident were in West Virginia ($34),

North Dakota ($38), and New

Hampshire and Minnesota ($48 each). 

State correctional systems with

integrated jail-prison facilities may have

higher operating costs than other jurisdictions because the costs of housing

jail inmates are included as State

expenditures. Of the six States with

integrated jail-prison systems in 2001,

four had average annual operating

costs per resident above the average

for States not operating integrated

systems. 

Annual operating costs per resident among ó 

 States with integrated 

jail-prison systems $143

 Alaska 243

 Delaware 204

 Connecticut 148

 Rhode Island 114

 Hawaii 96

 Vermont 73

Other State systems $99

 State Prison Expenditures, 2001 3

outlays during FY 2001, a transition period

during which its sentenced felons were being

transferred to the Federal Bureau of Prisons.

c

During FY 2001 Tennessee spent capital

amounts from sources outside its Department 

of Correction. 

d

Hawaiiís Department of Public Safety, Corrections Division had nonrecurring expenditures

which State budget officials excluded from the

capital category.

Note: Forty-six States and the District of

Columbia began their fiscal years in July and

ended them in June. Exceptions included

Alabama and Michigan, October to September; New York, April to March; and Texas,

September to August. Detail may not add to

total because of rounding.

. . .Not reported.

a

States have integrated jail-prison systems.

b

The District of Columbia reported no capital 

Wyoming 56,199 48,431 7,768 28,845 98 1,679

Washington 488,314 459,814 28,500 30,168 77 15,242

Utah 133,963 133,683 281 24,574 59 5,440

Oregon 404,255 399,436 4,819 36,060 115 11,077

New Mexico 149,077 148,249 828 28,035 81 5,288

Nevada 182,092 180,834 1,258 17,572 86 10,291

Montana 71,994 71,169 825 21,898 79 3,250

Idaho 95,494 92,821 2,673 16,319 70 5,688

Hawaii 117,101 117,101 . . . 21,637 96 5,412 a,d

Colorado 466,551 435,037 31,514 25,408 98 17,122

California 4,166,573 4,107,844 58,729 25,053 119 163,965

Arizona 618,571 609,910 8,661 22,476 115 27,136

Alaska 154,650 154,156 494 36,730 243 4,197 a

West $7,104,834 $6,958,485 $146,349 $25,231 $108 275,787

West Virginia 61,944 61,194 750 14,817 34 4,130

Virginia 723,767 699,104 24,663 22,942 97 30,473

Texas 2,315,899 2,270,959 44,940 13,808 106 164,465

Tennessee 421,807 421,807 . . . 18,206 73 23,168 c

South Carolina 405,238 373,249 31,989 16,762 92 22,267

Oklahoma 384,060 377,378 6,682 16,309 109 23,139

North Carolina 863,892 840,347 23,545 26,984 103 31,142

Mississippi 266,196 264,503 1,693 12,795 93 20,672

Maryland 645,620 632,749 12,872 26,398 118 23,970

Louisiana 479,260 459,686 19,573 12,951 103 35,494

Kentucky 288,438 274,404 14,034 17,818 67 15,400

Georgia 923,505 900,918 22,586 19,860 107 45,363

Florida 1,484,799 1,453,799 31,000 20,190 89 72,007

Dist. of Columbia 143,700 143,700 . . . 26,670 251 5,388 b

Delaware 166,327 162,397 3,930 22,802 204 7,122 a

Arkansas 199,003 192,611 6,392 15,619 72 12,332

Alabama 228,871 221,774 7,097 8,128 50 27,286

South $10,002,325 $9,750,580 $251,745 $16,479 $91 563,818

Wisconsin 709,292 599,080 110,212 28,622 111 20,931

South Dakota 37,529 37,030 499 13,853 49 2,673

Ohio 1,277,622 1,201,269 76,354 26,295 106 45,684

North Dakota 26,796 24,219 2,577 22,425 38 1,080

Nebraska 126,857 99,865 26,992 25,321 58 3,944

Missouri 436,081 362,429 73,652 12,867 64 28,167

Minnesota 253,385 239,953 13,432 36,836 48 6,514

Michigan 1,582,611 1,573,273 9,338 32,525 157 48,371

Kansas 199,843 182,655 17,189 21,381 68 8,543

Iowa 188,391 186,298 2,093 22,997 64 8,101

Indiana 477,628 449,406 28,222 21,841 73 20,576

Illinois 1,011,311 996,738 14,573 21,844 80 45,629

Midwest $6,327,346 $5,952,214 $375,132 $24,779 $92 240,213

Vermont 46,128 44,867 1,261 25,178 73 1,782 a

Rhode Island 124,333 121,167 3,165 38,503 114 3,147 a

Pennsylvania 1,203,219 1,183,668 19,551 31,900 96 37,105

New York 2,807,259 2,547,452 259,807 36,835 134 69,158

New Jersey 799,560 768,661 30,899 27,347 91 28,108

New Hampshire 62,754 60,279 2,475 25,949 48 2,323

Massachusetts 413,071 404,862 8,209 37,718 63 10,734

Maine 76,479 75,133 1,346 44,379 58 1,693

Connecticut 523,960 506,905 17,055 26,856 148 18,875 a

Northeast $6,056,762 $5,712,994 $343,769 $33,037 $106 172,925

Total $29,491,268 $28,374,273 $1,116,995 $22,650 $100 1,252,743

State Total Operating Capital inmate resident 6/30/01

Region and Expenditures (1,000ís of dollars) Per Per U.S. authority on

Annual operating costs under State

Prisoners

Table 2. Total, operating, and capital expenditures, and operating costs 

per State inmate and per U.S. resident, fiscal year 2001
Compared to 1996, prison spending

in 2001 revealed a greater emphasis

on facility operation 

Over three-fourths of the States spent

96% or more of prison funds on current

operations such as salaries, wages,

benefits, supplies, maintenance, and

contractual services. In 1996 State

spending on current operations

accounted for 94% of total expenditures.

The District of Columbia, Hawaii,

Alaska, Tennessee, and Utah allocated

all or nearly all prison expenditures to

current operating activities. By contrast,

Nebraska spent the lowest proportion

(79%), followed by Missouri (83%),

Wisconsin (84%), and Wyoming

(86%).

Salaries, wages, and benefits made up

about two-thirds of State prison operating expenditures, nationwide, in 2001

(table 3). Other operating costs

comprised about a third. Other operating costs covered a wide variety of

outlays, such as inmate health care,

food, utilities, supplies, fees, commissions, and contractual services.

 

A majority of States spent 4% or

less of prison expenditures on

capital projects

Thirty-seven jurisdictions used 4% or

less of all prison dollars to finance new

construction, renovations, major

repairs, equipment, land, buildings, and

other nonrecurring outlays during FY

2001 (table 4). Among this group, the

District of Columbia, Alaska, Hawaii,

and Utah spent less than 1%. Four

other States allocated significant

proportions of prison funds to capital

projects: Nebraska (21%), Missouri

(17%), Wisconsin (16%), and

Wyoming (14%).

4 State Prison Expenditures, 2001

Note: Detail may not add to total because of rounding.

*States have integrated jail-prison systems.

Wyoming 48,431 23,326 25,105

Washington 459,814 299,391 160,423

Utah 133,683 82,152 51,531

Oregon 399,436 197,265 202,171

New Mexico 148,249 75,527 72,723

Nevada 180,834 123,037 57,798

Montana 71,169 35,677 35,492

Idaho 92,821 52,401 40,420

Hawaii* 117,101 64,813 52,288

Colorado 435,037 275,095 159,942

California 4,107,844 2,873,065 1,234,778

Arizona 609,910 408,558 201,352

Alaska* 154,156 81,508 72,648

West $6,958,485 $4,591,814 $2,366,671

West Virginia 61,194 37,052 24,142

Virginia 699,104 539,590 159,514

Texas 2,270,959 1,343,459 927,500

Tennessee 421,807 168,295 253,511

South Carolina 373,249 266,518 106,732

Oklahoma 377,378 189,432 187,946

North Carolina 840,347 603,932 236,415

Mississippi 264,503 125,045 139,458

Maryland 632,749 351,870 280,879

Louisiana 459,686 196,078 263,609

Kentucky 274,404 124,787 149,617

Georgia 900,918 678,964 221,954

Florida 1,453,799 955,791 498,008

District of Columbia 143,700 63,545 80,155

Delaware* 162,397 110,751 51,646

Arkansas 192,611 108,960 83,651

Alabama 221,774 153,077 68,697

South $9,750,580 $6,017,146 $3,733,434

Wisconsin 599,080 330,025 269,055

South Dakota 37,030 19,956 17,074

Ohio 1,201,269 760,668 440,601

North Dakota 24,219 13,734 10,485

Nebraska 99,865 64,327 35,538

Missouri 362,429 220,790 141,639

Minnesota 239,953 159,981 79,971

Michigan 1,573,273 1,116,883 456,390

Kansas 182,655 107,721 74,934

Iowa 186,298 149,039 37,260

Indiana 449,406 304,310 145,096

Illinois 996,738 713,339 283,399

Midwest $5,952,214 $3,960,772 $1,991,442

Vermont* 44,867 26,643 18,224

Rhode Island* 121,167 101,999 19,168

Pennsylvania 1,183,668 765,038 418,629

New York 2,547,452 1,969,750 577,702

New Jersey 768,661 443,235 325,426

New Hampshire 60,279 42,476 17,803

Massachusetts 404,862 297,405 107,457

Maine 75,133 51,147 23,986

Connecticut* 506,905 316,497 190,408

Northeast $5,712,994 $4,014,190 $1,698,803

Total $28,374,273 $18,583,923 $9,790,350

jurisdiction Total and benefits costs

Region and Salaries, wages Other operating

Operating expenditures (1,000ís of dollars)

Table 3. Components of State prison operating expenditures,

 fiscal year 2001
Spending on State prison capital

projects decreased 25% from 1996

to 2001

Total capital expenditures of State

prisons, adjusted for inflation, declined

25% from $1.5 billion in FY 1996 to

$1.1 billion in FY 2001.

*In 2001 dollars.

2,794 213,307

Land and 

other capital

Equipment 253,247 346,662

Construction 860,954 929,786

Total $1,116,995 $1,489,755

2001 1996*

State prison capital expenditures

for fiscal year ($1,000ís)

More than three-fourths of State prison

capital expenditures were for new

construction, renovations, and major

repairs, including fees and services of

architects, engineers, appraisers, and

attorneys (table 4.) In FY 2001 these

components consumed nearly the

entire capital account in Missouri (99%)

and Washington (97%).

The second-largest capital expenditure

was for equipment purchases and

installations, including furnishings,

office equipment, motor vehicles, and

other devices having a useful life of

more than 5 years. The average outlay

was approximately 23% of total capital 

 State Prison Expenditures, 2001 5

 . . .Not reported.

a

States have integrated jail-prison systems. 

b

The District of Columbia transferred its

sentenced felons to the Federal Bureau of

Prisons during FY 2001.

c

Tennessee spent capital amounts from 

sources outside its Department of Correction.

d

Hawaiiís Department of Public Safety,

Corrections Division, excluded some nonrecurring expenditures from the capital

category.

Wyoming 5,648 2,120

Washington 27,700 231

Utah . . . 281

Oregon 3,202 1,396

New Mexico 530 266

Nevada . . . 1,258

Montana 7 804

Idaho 800 1,874

Hawaii . . . . . . a,d

Colorado 24,863 6,651

California 39,237 19,329

Arizona 1,365 7,296

Alaska . . . 494 a

West $103,351 $41,999

West Virginia 195 554

Virginia 9,210 15,453

Texas 28,311 16,629

Tennessee . . . . . . c

South Carolina 30,408 1,581

Oklahoma 1,262 5,420

North Carolina 16,854 6,513

Mississippi 430 1,263

Maryland 2,075 10,797

Louisiana 15,100 4,473

Kentucky 11,881 1,876

Georgia 7,236 15,318

Florida 14,129 15,820

District of Columbia . . . b

 . . .

Delaware . . . 3,930 a

Arkansas 4,973 1,273

Alabama 5,448 1,649

South $147,512 $102,549

Wisconsin 98,660 11,452

South Dakota 235 264

Ohio 59,420 16,933

North Dakota 2,390 188

Nebraska 25,256 1,736

Missouri 73,230 421

Minnesota 4,183 9,249

Michigan 272 9,066

Kansas 15,647 1,542

Iowa 334 1,748

Indiana 17,475 10,747

Illinois 2,219 12,354

Midwest $299,321 $75,701

Vermont 819 442 a

Rhode Island 2,505 660 a

Pennsylvania 11,739 7,812

New York 259,807 . . .

New Jersey 17,285 13,614

New Hampshire 1,338 1,137

Massachusetts 4,016 4,194

Maine 425 921

Connecticut 12,837 4,218 a

Northeast $310,770 $32,998

Total $860,954 $253,247

jurisdiction Construction Equipment

Region and Capital costs ($1,000ís)

Table 4. Components of State prison

capital expenditures, fiscal year 2001

Much of the variation between States

in the cost of operating prisons was

outside the influence of correctional

officials: differences in the cost of

living, variation in prevailing wage

rates, climate, and other factors.

Although important, they were beyond

the scope of this study. 

However, certain corrections-related

factors were possible to analyze. For

example, employee salaries, wages,

and benefits consumed more than

half of prison operating expenditures.

Their influence was measurable by

comparing inmate-to-staff ratios with

operating costs per inmate. High

inmate-to-staff ratios were most

common in States reporting low

average costs per inmate, and low 

inmate-to-staff ratios predominated in

States with high average annual costs

per inmate.

States with the lowest inmate-to-staff ratios:

Inmates Operating

 per cost per inmate

employee per day 

Maine 1.7 $122

Massachusetts 1.8 $103

Vermont 1.8 $ 69

West Virginia 2.0 $ 41

 

States with the highest inmate-to-staff ratios:

Inmates Operating 

per cost per inmate

employee per day 

Alabama 6.8 $ 22

Nevada 4.8 $ 48

South Dakota 4.6 $ 38

Arkansas 4.0 $ 43

Cost savings may also have been

made from the operation of larger

capacity prisons. Eight of the 10

States with average annual operating

expenditures per inmate over $30,000

had an average number of inmates

per facility under 800. By contrast, 3

of the 7 States with average annual

operating expenditures per inmate

under $15,000 had an average

number of inmates per facility over

800. 

Transfer payments, which included 

intergovernmental monies from one

government to another as well as

intra-governmental payments from

one department or agency to another,

varied significantly by State. In the

1996 State prison expenditure study,

when these payments were last identified separately, departments of

corrections in the South received

about 8% of their total expenditures

from transfer payments, compared to

about 4% in other regions. 

Many factors associated with variation in prison costs
spending. In Alaska, Delaware,

Nevada, and Utah, however, equipment accounted for the entire capital

spending category in FY 2001. 

The purchase of land, rights-of-way,

existing structures, title searches, and

related costs (not shown in table 4)

included less than half of 1% of State

prison capital expenditures, nationwide.

Four States reported outlays in this

category that exceeded 2%: Oregon

(4.6%), New Mexico (3.9%), Florida

(3.4%), and Arkansas (2.3%).

Over a quarter of prison operating

costs for basic living expenses

Prisoner medical care, food service,

utilities, and contract housing totaled

$7.3 billion, or about 26% of State

prison current operating expenses. 

Inmate medical care totaled $3.3

billion, or about 12% of operating

expenditures. Supplies and services of

government staff and full-time and

part-time managed care and fee-forservice providers averaged $2,625 per

inmate, or $7.19 per day (table 5). By

comparison, the average annual health

care expenditure of U.S. residents,

including all sources in FY 2001, was

$4,370, or $11.97 per day.*

Five States reported annual medical

costs per inmate above $4,000: Maine

($5,601), New Mexico ($4,665),

California ($4,394), Massachusetts

($4,049), and Alaska ($4,047). Three

States spent less than $1,000 per

inmate: Louisiana ($860), Montana

($922), and Kentucky ($960).

Factors beyond the scope of this report

contributed to the variation in spending

levels for prisoner medical care.

Lacking economies of scale, some

States had significantly higher than

average medical costs for everyone,

and some had higher proportions of

inmates whose abuse of drugs or

alcohol had led to disease. Also influencing variations in expenditures were

staffing and funding of prisoner health

care and distribution of specialized

medical equipment for prisoner treatment. 

6 State Prison Expenditures, 2001

a

States have integrated jail-prison systems.

b

The Rhode Island State Department of Health and Hospitals operated a centralized 

power plant that provided utilities to prisons and other government agencies. Utilities 

were unmetered and costs were allocated on the basis of square footage.

Wyoming 6,533 1,719 1,547 3,891 1,024 921

Washington 51,998 31,617 16,672 3,412 2,074 1,094

Utah 7,308 5,214 3,280 1,343 958 603

Oregon 14,222 7,359 8,865 1,284 664 800

New Mexico 24,669 4,514 3,339 4,665 854 632

Nevada 29,546 14,414 8,023 2,871 1,401 780

Montana 2,997 1,380 1,094 922 425 337

Idaho 9,757 3,660 2,579 1,715 643 453

Hawaii 9,788 9,615 5,207 1,809 1,777 962 a

Colorado 43,509 24,399 13,242 2,541 1,425 773

California 720,436 140,922 125,890 4,394 859 768

Arizona 75,024 32,461 19,840 2,765 1,196 731

Alaska 16,987 5,242 6,930 4,047 1,249 1,651 a

West $1,012,775 $282,516 $216,508 $3,672 $1,024 $785

West Virginia 11,550 4,550 2,296 2,797 1,102 556

Virginia 87,320 39,856 39,293 2,866 1,308 1,289

Texas 329,162 104,871 103,449 2,001 638 629

Tennessee 35,943 25,552 12,969 1,551 1,103 560

South Carolina 28,716 9,679 15,533 1,290 435 698

Oklahoma 46,457 23,395 9,691 2,008 1,011 419

North Carolina 45,558 5,935 31,165 1,463 191 1,001

Mississippi 25,946 6,142 7,149 1,255 297 346

Maryland 52,193 15,316 28,454 2,177 639 1,187

Louisiana 30,535 12,381 11,584 860 349 326

Kentucky 14,782 8,688 8,338 960 564 541

Georgia 117,384 52,174 36,280 2,588 1,150 800

Florida 242,132 78,483 44,792 3,363 1,090 622

 District of Columbia 10,425 2,955 2,688 1,935 549 499

Delaware 14,762 9,624 6,651 2,073 1,351 934 a

Arkansas 19,924 5,233 4,843 1,616 424 393

Alabama 28,700 7,152 12,616 1,052 262 462

South $1,141,489 $411,988 $377,792 $2,025 $731 $670

Wisconsin 47,082 25,119 15,802 2,249 1,200 755

South Dakota 5,465 4,173 1,225 2,044 1,561 458

Ohio 111,693 75,445 40,729 2,445 1,651 892

North Dakota 2,892 1,803 939 2,678 1,670 870

Nebraska 12,406 5,627 2,568 3,145 1,427 651

Missouri 50,207 21,144 19,050 1,782 751 676

Minnesota 25,458 10,843 7,930 3,908 1,665 1,217

Michigan 137,414 48,148 37,970 2,841 995 785

Kansas 22,835 11,975 7,592 2,673 1,402 889

Iowa 16,713 14,225 7,253 2,063 1,756 895

Indiana 37,601 19,965 19,018 1,827 970 924

Illinois 73,235 52,481 38,355 1,605 1,150 841

Midwest $543,001 $290,949 $198,432 $2,260 $1,211 $826

Vermont 5,199 1,741 963 2,918 977 540 a

Rhode Island 11,820 4,107 636 3,756 1,305 202 a,b

Pennsylvania 137,291 77,083 37,452 3,700 2,077 1,009

New York 219,735 66,618 85,824 3,177 963 1,241

New Jersey 91,652 22,760 31,140 3,261 810 1,108

New Hampshire 3,964 2,035 3,393 1,706 876 1,461

Massachusetts 43,460 9,497 21,266 4,049 885 1,981

Maine 9,483 3,107 2,781 5,601 1,835 1,643

Connecticut 68,330 23,451 19,838 3,620 1,242 1,051 a

Northeast $590,935 $210,400 $203,294 $3,417 $1,217 $1,176

Total $3,288,200 $1,195,854 $996,027 $2,625 $955 $795

Utilities

Food 

service

Medical 

Utilities care

Food 

service

Medical 

care

Region and 

jurisdiction

 1,000ís of dollars Cost per inmate in 2001

Table 5. State prison expenditures for medical care, food service, and utilities,

fiscal year 2001

*U.S. Department of Health and Human

Services, National Center for Health Statistics,

citing Centers for Medicare and Medicaid Services in Health, United States, 2003, table 116.
Food service in FY 2001 cost $1.2

billion, or approximately 4% of State

prison operating expenditures. 

As a percentage of total prison operating costs, South Dakota and Hawaii

allocated the largest proportions to

food services, 11.3% and 8.2%,

respectively, and North Carolina and

Oregon allocated the smallest proportions, 0.7% and 1.8%. 

On average nationwide, State departments of correction spent $2.62 to feed

inmates each day. Pennsylvania

($5.69) and Washington ($5.68)

reported the largest amounts, followed

by Maine ($5.03), Hawaii ($4.87), and

Iowa ($4.81). North Carolina indicated

the lowest cost ($0.52), followed by

Alabama ($0.72), Mississippi ($0.81),

and Louisiana ($0.96). 

Reports of low food costs often

reflected prisoner-operated farm and

food processing operations. 

For example, Mississippi State

Penitentiary, Parchman, and South

Mississippi State Penitentiary, Leakesville, grew a wide variety of fruits,

vegetables and grains, and raised

livestock for other Mississippi prisons.

Prison enterprises in North Carolina

operated a cannery, a meat processing

plant, warehouses, and trucks to

deliver food and equipment to correctional facilities statewide.

Utility services for electricity, natural

gas, heating oil, water, sewerage, trash

removal, and telephone in State

prisons totaled $996 million in FY 2001.

 

Utilities accounted for about 3.5% of

State prison operating expenditure.

Among individual States, they

consumed the most in Alabama

(5.7%), New Hampshire and Virginia

(5.6%), and the least in Rhode Island

(0.5%), and Montana (1.5%).

Daily utility costs ranged from a high 

of $5.43 per inmate in Massachusetts, 

$4.52 in Alaska, and $4.50 in Maine 

to a low of $0.55 in Rhode Island,

$0.89 in Louisiana, and $0.92 in

Montana. 

40 State correctional systems paid

others to house some prisoners 

All but 11 States had expenses relating

to the contract housing of prison

inmates in private facilities, local jails,

other States’ facilities, or Federal facilities. The 11 States not reporting contract housing costs for inmates in FY

2001 were Alabama, Iowa, Kansas,

Illinois, Maine, Massachusetts,

Missouri, New Hampshire, North

Carolina, Washington, and West

Virginia. 

Contract housing averaged 6% of

operating expenses, nationwide.

However, seven States spent more

than 3 times this proportion:

Montana spent $26.1 million, all of it to

house inmates in private facilities. 

Louisiana paid $171.1 million, 81% of it

to house inmates in local jails; and

Tennessee spent $150.7 million, about

a third of it to hold inmates in private

facilities and two-thirds in local jails.

Methodology

Following a procedure similar to that

used to produce State Prison Expenditures, 1996, BJS asked government

finance specialists at the U.S. Census

Bureau to identify each State’s corrections function codes, as reported in the

FY 2001 Survey of Government

Finances. Census staff entered this

information into a data base, using a

standardized format provided by BJS.

This data extraction procedure

included both inter- and intragovernmental transfer payments, and clarified

missing, repetitious, and out-of-range

data items. 

Both department of corrections and 

State central office budget specialists

were asked to review the originally

submitted numbers. These officials

worked with the Census Bureau to

eliminate duplicate reports, interpret

expenditure codes, and understand

organizational functions and accounting procedures. 

Budget officials sharpened the scope

of the study by including expenditures

for central office personnel who

performed prison activities and deleting

outlays that pertained to probation and

parole services, juvenile corrections,

and nonresidential community corrections — areas outside the prison

function. 

Upon final approval by each State’s

designated financial reviewer, Census

staff completed the data adjustment

phase of the project with a 100%

response rate for total and operating

expenditures. 

Underreporting

Correctional expenditures shown in 

the Highlights figure may be underreported. As the result of discussions

between State budget officials and 

U.S. Census Bureau specialists in

government finance who collected the 

data for this report, the total cost to

operate State prisons in FY 2001 was

1.1% higher than originally reported to

the Census Bureau in the 2001 Survey

of Government Finances.

Factors which contributed to the

revised FY 2001 State prison spending

figure included adjustments for central

office staff assigned to prison, probation, parole, and juvenile activities;

elimination of duplicate fund reporting;

and access to final numbers following

State submissions of preliminary

numbers in the Survey of Government

Finances.

 State Prison Expenditures, 2001 7

New Mexico 22

Alaska 23

Mississippi 26

Oklahoma 30

Tennessee 36

Louisiana 37

Montana 37%

Contract housing cost

as a percentage of

total prison

expenditure

The data to produce the graph in the

Highlights on page 1 are available

with other tables of the report on the

BJS website <www.ojp.usdoj.gov/

bjs>. These data include inflationadjusted costs for total State corrections and prisons as well as costs

per U.S. resident.
Data limitations 

Expenditure data published in State

Prison Expenditures, 2001 and State

Prison Expenditures, 1996 were reported by State budget officials, based

on categories established by the 

Census Bureauís annual Survey of

Government Finances. Previous State

prison cost data published by BJS were

reported by correctional facility

operators.

Adjusting for inflation

State government expenditures for

fiscal years 1996 and 2001 were

inflation-adjusted in 2001 constant

dollars, as appropriate for State and

local government spending. The following annual chain-type price indexes for

gross domestic product were employed

as divisors and unadjusted expenditures as dividends to produce inflationadjusted expenditures in 2001 constant

dollars:

Price indexes Price indexes

Year (1996 base) Year (1996 base) 

1986 0.7410 1994 0.9504

1987 0.7726 1995 0.9777

1988 0.7960 1996 1.0000

1989 0.8241 1997 1.0258

1990 0.8616 1998 1.0435

1991 0.8864 1999 1.0733

1992 0.9028 2000 1.1198

1993 0.9259 2001 1.1501

U.S. Department of Commerce, Bureau of

Economic Analysis, developed the above

indexes, published in Economic Report of the

President, Februrary, 2001, table B-7, United

States Government Printing Office, Washington:

2003.

Office of Justice Programs

Partnerships for Safer Communities

http://www.ojp.usdoj.gov

The Bureau of Justice Statistics is

the statistical agency of the U.S.

Department of Justice. Lawrence A.

Greenfeld is director.

James J. Stephan wrote this report

and coordinated data collection,

under the supervision of Allen J.

Beck. Tracy L. Snell provided statistical verification. Tina Dorsey and

Tom Hester produced and edited

the report. Jayne Robinson 

prepared the report for final printing.

Howard Trott, Shelley Blake, and

James Batton of the U.S. Census

Bureau, Governments Division,

Finance Branch coordinated the

data extraction process and verified

the information reported by State

officials, under the direction of

Steven Owens. Pamela Butler

prepared the data for review by

State contacts, under the direction

of Charlene Sebold.

June 2004, NCJ 202949 
 State Prison Expenditures, 2001 

Note: Correctional expenditures may be underreported. Interviews with State budget officials 

 by the U.S. Census Bureau for this report produced a revised estimate of State prison costs

 of $29.5 billion for FY 2001, 1.1% higher than the 2001 Survey of Government Finances. 

1

US Census Bureau. Censuses of Governmental Finances, 1986 -1996, Tables 11 and 12; and

unpublished data compatible with this series for 1997 through 2001. 

2

Economic Report of the President, February, 2003. Bureau of Economic Analysis,

Chain-type price indexes for gross domestic product, 1959-2002, Table B-7. 

3

US Census Bureau, Estimates of the Population of the United States to July 1, 1990, 

Current Population Estimates and Projections, Series P-25, No. 1064. US Census Bureau, 

US Population Estimates by Age, Sex, Race, and Hispanic Origin: 1990-1995, PPL-41. 

Unpublished data 1996 -2001, compatible with Resident Population Estimates for Age, 

Sex, Race and Hispanic Origin. 

2001 38,164,541 134 29,491,268 104

2000 36,193,618 128 27,569,391 98

1999 35,365,328 128 27,182,280 98

1998 33,862,569 123 26,120,090 95

1997 32,652,718 120 25,059,538 92

1996 31,425,488 119 24,029,310 91

1995 30,650,599 117 23,627,083 90

1994 27,926,979 107 21,417,090 82

1993 25,698,979 100 19,723,011 77

1992 25,388,942 100 19,404,816 76

1991 24,641,313 98 19,226,855 76

1990 22,606,549 91 17,505,068 70

1989 20,309,744 82 15,681,836 63

1988 18,420,811 75 14,265,336 58

1987 16,521,216 68 12,461,390 51

1986 $15,595,807 $65 $11,718,582 $49

Cost per

resident3

 Total 

(in 1,000ís)1,2

Cost per

resident3

 Total 

(in 1,000ís)1,2

Year

Total State corrections State prisons

Appendix table. Surveys of government finances, 1986-2001: Expenditures for

total State corrections and for State prisons, in 2001 constant dollars