Waste, Fraud & Mismanagement:
Your Tax Dollars at Work

State Auditor Slams Department of Corrections Spending. In a September 8 report, State Auditor Elaine Howle blasted the Department of Corrections for skyrocketing costs. The department's budget increased nearly 32 percent, to $10 billion, from 2005 to 2008 even as the number of prison inmates declined.

"Corrections fails to track, maintain and use data that would allow it to more effectively monitor and manage its operations," the auditor said.

Other findings in the report:

·         The cost of housing an inmate out of state in fiscal year 2007-08 was less per inmate than the amount the Department of Corrections spent to house inmates in some of its institutions.

·         Overtime is so prevalent that of the almost 28,000 correctional officers paid in fiscal year 2007-08, more than 8,400 earned pay in excess of the top pay rate for officers two ranks above a correctional officer.

·         Over the next 14 years, the difference between providing new correctional officers with enhanced retirement benefits, as opposed to the retirement benefits many other state workers receive, will cost the state an additional $1 billion.

·         Although the department's budget for academic and vocational programs totaled more than $208 million for fiscal year 2008-09, it is unable to assess the success of its programs.

·         California Prison Health Care Services' ability to transition to using telemedicine is impeded by a manual scheduling system and limited technology.

At this writing, the governor's proposal to release 27,000 prisoners is bogged down in the Legislature. It is not known what impact this report will have on this proposal. (Source: California State Auditor report on Department of Corrections, Report 2009 – 107.1, September 2009.)

Cal-Taxletter, September 11, 2009

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