by Peter Wagner,
February 8, 2017
On Monday, arguments were heard in a federal court case challenging the Federal Communications Commission’s regulations of the prison and jail telephone industry. A decision is not expected for several months, but there are a few updates to share nevertheless.
Centurylink, Global Tel*Link, Pay Tel, Securus Technologies, and Telmate sued the FCC when it started regulating the industry. Shortly thereafter, the Prison Policy Initiative joined with the D.C. Prisoners’ Legal Services Project, Citizens United for Rehabilitation of Errants (CURE), The Campaign for Prison Phone Justice, and the Office of Communication, Inc. of the United Church of Christ as intervenors in support of the government respondents in the case, and we were all represented by the Institute for Public Representation at the Georgetown University Law Center. By joining the case, we could help the FCC defend its orders, and ensure that the unique interests of the families and other stakeholders were represented in the case. The recent presidential election made our 2013 decision to intervene especially important.
The presidential election reshuffled the seats at the FCC. Ajit Pai, a commissioner since 2012 was made Chairman, and even though Pai had previously condemned the market failure caused by the corrupt commission system, he ultimately voted against the FCC’s regulations of the industry. And on January 31, the FCC told the Court that it was not going to defend two aspects of the regulations. Even as the FCC refused to support its own regulations, our attorney, Andrew Schwartzman, was able to defend the FCC’s work before the Court. We’re glad we intervened.
We don’t know what the Court is going to decide, and we don’t yet know how or whether Chairman Pai wants the FCC to address what he saw as “market failure” in the prison and jail telephone market.
All of this will become clearer over the next few months, but that leaves us with the immediate question of what families with loved ones behind bars can expect to pay. That too is complicated, in part because the Court stayed part of the FCC’s regulations.
Some states like Alabama have stricter regulations, and some prisons and jails have negotiated better deals for the families, but under the currently-enforceable federal rules:
- For both prisons and jails, inter-state calls will continue to be capped at a maximum of $0.21-$0.25/minute for debit/prepaid or collect, respectively. (These are the rate caps that went into effect in February 2014. For now, in-state calls are not subject to rate caps.)
In addition, the abusive hidden fees for both inter-state and in-state calls, which our report Please Deposit All of Your Money: Kickbacks, Rates, and Hidden Fees in the Jail Phone Industry found can easily double the price of a call, are now capped at:
- Payment by phone or website: $3 (previously up to $10)
- Payment via live operator: $5.95 (previously up to $10)
- Paper bills: $2 (previously up to $3.49)
- Markups and hidden fees embedded within Western Union and MoneyGram payments: $0 (previously up to $6.95)
- Markups and hidden profits on mandatory taxes and regulatory fees: $0 (We’ve seen these markups and hidden profits on “mandatory” taxes be 25% of the cost of the call)
- All other ancillary fees: $0. (There are many of these charges. Some of the most egregious ones are $10 fees for refunds, $2.50/month for “network infrastructure” and a 4% charge for “validation”.)
Later, if we are successful in Court and nothing else happens:
- In-state calls will be capped at $0.21-$0.25/minute, just like interstate calls. (This is particularly important because 92% of calls from prisons and jails are in-state, and because in the absence of regulation, jails are increasing the cost of these calls to up to an exploitative $1.50 a minute.
- The companies will be prohibited from defying the FCC’s rate caps by steering families to abusive “single call” products like Text2Connect™ and PayNow™ that charge $9.99-$14.99 for a single call.
by Bernadette Rabuy,
February 7, 2017
Our new report Following the Money of Mass Incarceration looks at the big picture and concludes that the government and families of justice-involved people spend $182 billion each year on mass incarceration and over-criminalization. But for this report we also calculate an important cost hidden within this figure: the cost of locking people up before trial.
This population which has recently grown to be the majority of people in jails, has not been convicted and is legally innocent. Some people were arrested a few hours or days ago and have not been brought before a judge, and others are too poor to afford money bail and must wait for trial.
On any given day, this country has 451,000 people behind bars who are being detained pretrial. In Following the Money of Mass Incarceration, we put a price tag on how much it costs local governments nationwide: $13.6 billion.
Jail policies matter. There are lots of strategies that individual jurisidictions can adopt to reduce their jail populations. Check out the MacArthur Foundation Safety and Justice Challenge to see community solutions aimed at reducing use of jails and high rates of pretrial detention. And for more on how the poverty of people detained pretrial makes money bail unaffordable and spurs pretrial detention, check out our 2016 report, Detaining the Poor: How money bail perpetuates and endless cycle of poverty and jail time.
by Bernadette Rabuy,
February 1, 2017
In a January 2015 report, we discovered that 74% of jails that adopt video visitation go on to ban in-person visits. Fortunately, the movement to protect in-person visits from video technology has continued to grow. Here are some recent developments we wanted to share:
by Wendy Sawyer,
January 31, 2017
Please welcome our new Policy & Communications Associate, Lucius Couloute.
Lucius is currently a doctoral student at the University of Massachusetts at Amherst in the Sociology department; previously, he earned his Bachelor’s degree from UMass in Economics. His dissertation examines the role of race and insecure employment experiences during prisoner reentry. Lucius is from Hartford, where he also serves as a member of the Greater Hartford Reentry Council.
January 25, 2017
In a first-of-its-kind report, the Prison Policy Initiative aggregates economic data to offer a big picture view of who pays for and who benefits from mass incarceration.
The report, Following the Money of Mass Incarceration, and infographic are a first step toward better understanding who benefits from mass incarceration and who might be resistant to reform.
In the report, the Prison Policy Initiative:
- provides the significant costs of our globally unprecedented system of mass incarceration and over-criminalization,
- gives the relative importance of the various parts,
- highlights some of the under-discussed yet costly parts of the system, and then
- shares all of its sources so that journalists and advocates can build upon its work.
Following the Money of Mass Incarceration establishes that:
- Almost half of the money spent on running the correctional system goes to paying staff. This group is an influential lobby that sometimes prevents reform and whose influence is often protected even when prison populations drop.
- Private companies that supply goods to the prison commissary or provide telephone service for correctional facilities bring in almost as much money ($2.9 billion) as governments pay private companies ($3.9 billion) to operate private prisons.
- Commissary vendors that sell goods to incarcerated people — who rely largely on money sent by loved ones — is itself a large industry that brings in $1.6 billion a year.
“Following the Money of Mass Incarceration finds that mass incarceration and over-criminalization are deeply embedded in our economy,” said report co-author and Prison Policy Initiative Executive Director Peter Wagner. “Changing our nation’s criminal justice priorities is going to require challenging a lot of entrenched but often hidden interests.”
The report is available at: https://www.prisonpolicy.org/reports/money.html.
by Aleks Kajstura,
January 19, 2017
Two recent submissions to the FCC shed new light on the high cost of in-state phone calls from jails. While the campaign to make phone calls from prison and jail more affordable for family and friends of incarcerated people has made significant progress, the new filings underscore how private companies continue to avoid regulation while charging unconscionable rates.
These submissions present new research which reveals that some in-state calls cost over $1.50 a minute, and finds pricing structures that “bear a remarkable similarity” to practices prohibited by the FCC.
In order to “highlight the current ICS [Inmate Calling Service] landscape” for the FCC, Lee Petro, counsel for the Wright Petitioners, and the Prison Policy Initiative (thanks to members of our Young Professionals Network) conducted a survey of jails served by the major ICS providers.
The most significant discovery made from reviewing the current pricing policies of the ICS providers was that several ICS providers have imposed a rate structure for intrastate ICS calls that bear a remarkable similarity to the now-prohibited “connection fee” which was prohibited in the 2015 Second Report and Order, and memorialized in Section 64.6080 of the Commission’s rules.
These pricing schemes have resulted in 15 minute calls that would cost $24.95 from the Arkansas County Jail via Securus and $17.77 from the Douglas County jail in Oregon via Global Tel*Link.
You can find the summary of the Comments submission findings in the Ex-Parte submission, and the rates for all of the jails surveyed in exhibits B and C of the Comments submission (starting on page 82), and exhibits A and D in an updated filing reflecting Legacy’s correction of their advertised rates.
by Stephen Raher,
January 18, 2017
As with many areas of government, prisons and jails are increasingly shifting costs to those who can least afford it: incarcerated people and their families. In correctional facilities, this often takes the form of copays for medical care, forcing incarcerated people to purchase clothing or hygiene items, and cutting food service in favor of for-profit “canteens.” Because most incarcerated people lack money to cover such expenses, this means that family members must frequently transfer money to “inmate trust accounts.”
Historically, families could send money to an incarcerated relative’s account by simply mailing a money order. But private companies saw an opportunity to use these accounts as a potential source of profits. For an upcoming report, we set out to find the answer to a seemingly straightforward question: How much do these companies earn off of money transfers? It’s hard to say, because there is no publicly-available data that gives a complete picture; however, certain limited data can be used to arrive at a rough estimate.
Four states have published data on the volume of money transfers in their state prison systems. This data covers Nevada, Ohio, and Wyoming (all calendar year 2011), and Pennsylvania (2014). Dividing the total amount of transferred funds by the states’ respective prison populations yields average annual transfers of $737 per incarcerated person. Multiplying this average amount by the total population of all state prisons (in 2016) would yield annual transfers of $995 million.
But the amount of money transferred doesn’t tell us how much money the companies make on the process. The difficulty in estimating fee revenue comes from the fact that the amount of the transaction fee varies among jurisdictions. In addition, some jurisdictions may still allow family members to send funds for no fee through the mail; while other states may charge a fee for payments by mail, or simply prohibit no-fee options.
Direct evidence of fee revenue is available for JPay, Inc., one of the largest payment processors for prisons and jails. JPay is currently a subsidiary of telecommunications firm Securus Technologies, which is owned by private equity firm Abry Partners. In an April 2015 presentation to potential lenders, Securus stated that in 2014, JPay made $53 million in fees (page 49) on transfers of $525 million (page 38). This suggests an average fee of 10% (i.e., $53 million ÷ $525 million = .10).
If, as stated above, the total amount of state-prison money transfers is $995 million per year, then with fees at 10%, payment processors could potentially make up to $99 million in fees, assuming every prison system in the country privatized money transfer services and eliminated no-fee options. This aligns precisely with the Securus/JPay investor presentation, which estimates the total market for money transfers in state prisons to be worth $99.2 million in corporate revenue (page 45).
My discussion so far has not mentioned county jails and the federal prison system, because information about money transfers in these settings is even more difficult to find. In fact, some of the only information available at this time is Securus’s estimate of the total potential market. In 2015, Securus told potential investors that the total potential fee revenue from county jails and federal prisons was $58 million and $15 million respectively.
Notably, the most lucrative money transfer market may not even involve correctional facilities. Among the proliferation of user fees being imposed on the poor are fees levied on people serving time on probation or parole. Processing those payments means lots of money for companies like Securus/JPay. In fact, Securus believes that it if it obtained contracts for every state, federal, and local prison/jail in the country, it would be able to earn up to $172 million in fees. In contrast, the company believes that the total market for probation- and parole-related payments is worth nearly $300 million in fees.
Governments process hundreds of millions of dollars of payments every day. In the context of tax payments, court filings, license applications, and other types of user fees, agencies have created innovative no-cost options (including electronic payments) that facilitate quick, efficient transfers. But in the correctional setting, administrators have largely ignored these innovations, instead opting to outsource this function to private companies seeking to profit. As a result, money transfers are yet another way in which private companies profit off of families and friends seeking to support their incarcerated loved ones.
by Wendy Sawyer,
January 10, 2017
Money bail. Pretrial detention. Fines and fees. Race. Poverty.
Vera connects those dots today in Past Due: Examining the Costs and Consequences of Charging for Justice in New Orleans. The report provides new evidence that there are few winners in a system that punishes defendants who can’t afford to pay bail, fines and fees — and then charges taxpayers for the cost of jailing them when they can’t pay.
Like many local and state criminal justice systems, New Orleans uses bail, fines, and fees to compel the “users” of the system to pay for some of the cost of policing, prosecuting, and jailing them. In theory, these costs are meant to enhance accountability; for example, money bail is intended to ensure appearance in court, when the defendant can get his or her money back. And the fees charged to defendants at sentencing — such as court costs or probation fees — are seen as cost saving measures for services brought on by defendants themselves.
But Vera’s report lays out the deep dysfunction of the system in New Orleans. Importantly, it gives us a clear picture of who is burdened most: black residents make up 59% of the population, but paid 84% of bail bond premiums and 69% of fines and fees. And in New Orleans, black households earn less than half what white households do. These racial and economic disparities should make a user-funded scheme seem like a bad idea from the outset. In practice, Past Due shows, it’s even worse.
First, Vera’s researchers tackled bail, which they found was a requirement for most booked defendants. As we have shown before, bail is set too high for many poor defendants to pay. In New Orleans, people were detained an extra 51 days on average because, even with bail amounts as low as $100, it was hard or impossible for them to pay. On any given day, nearly one-third of the New Orleans jail is occupied by people who are there simply because they can’t afford bail.
Besides those who can’t pay bail, New Orleans must also set aside a few beds in jail for those who can’t afford the fines and fees levied upon them at sentencing. Vera found that 536 people were arrested for non-payment of criminal fines and fees in 2015, almost all for municipal cases where the average amount imposed was just $228. People interviewed and surveyed by Vera were confounded by the expectation to pay court debts when their criminal justice involvement made their financial outlook bleaker than ever. As one person said, “I understand I gotta pay the money, but how can I pay the money if I’m a convicted felon and can’t get a job?”
While Past Due confirms much of what we know about the problems with bail, fines, and fees, its value to policymakers with an eye on the bottom line is the cost-benefit analysis it provides. Vera compared how much the city of New Orleans collected from bail, fines, and fees to how much it cost to jail people who could not afford to pay, and found that the city spent $1.9 million more than it brought in. This report makes clear that reforming the systems of bail and criminal justice fines and fees is not only a moral imperative, but also financially prudent.
The potential savings from reducing the jail population “pale[s]s in comparison to the potential to reduce the human toll of jail.” In a technical report accompanying Past Due, researchers estimated the taxpayer savings of $31 per day for every person kept out of jail — compare this with the $380 daily cost of jail borne by each incarcerated person, which accounts for the risk of violence, loss of liberty, lost wages, child care, and jail fees. This is to say nothing of the net effect on the families and communities of people who are jailed.
Vera’s report urges us to question user-funded systems that transfer millions from “historically disadvantaged black communities with the least money to spare” and then lock people up when they can’t pay.
by Bernadette Rabuy,
January 10, 2017
Last week, President Obama surprised criminal justice reformers with an article in the Harvard Law Review on The President’s Role in Advancing Criminal Justice Reform. While the President spends more of the article summarizing his efforts to reform the criminal justice system than sharing an analysis of the challenges he faced trying to make our criminal justice system more just, President Obama’s article speaks to some of the most important lessons we’ve learned in our work to end mass incarceration. We believe that understanding the following points is key to meaningful justice reform:
- State and local policies drive mass incarceration. Citing our report, Mass Incarceration: The Whole Pie, Obama explains that, “State and local officials are responsible for most policing issues, and they are in charge of facilities that hold more than 90% of the prison population and the entire jail population.” President Obama’s reminder should spark hope among advocates. While criminal justice reform is likely to be more challenging at the federal level during the Trump administration, Americans should not forget how impactful state and local reforms can be in reducing the incarcerated population.
- Mass incarceration is bad for all Americans. President Obama reminds readers that “It would be a tragic mistake to treat criminal justice reform as an agenda limited to certain communities. All Americans have an interest in living in safe and vibrant neighborhoods…” The sheer scale of our criminal justice system means both that mass incarceration has harmed the lives of many Americans and that government resources that could be used for other social services are instead spent on locking people up. For these reasons, even Americans who have never come into contact with the criminal justice system or don’t have a loved one behind bars have an interest in the country reducing its unprecedented use of incarceration.
- The true reach of our criminal justice system goes beyond those behind bars. President Obama cites our blog to explain that beyond the incarcerated, there are the many Americans with criminal records, the people released from prisons each year, and the 11 million people who cycle through local jails. In our view, keeping the true scope of the system in mind will make it that much easier for advocates to steer clear of reforms that simply transfer people from one piece of the correctional control pie to another and think more expansively about what reducing incarceration rates means for correctional supervision like probation and parole.
President Obama’s article is further evidence of how far our country has moved away from the tough on crime narrative that used to be overwhelmingly popular with Democrats and Republicans alike. At this time when hateful rhetoric is becoming more normalized, we hope that more people can take a cue from Obama who speaks about those who have committed crimes as people who have made mistakes.
For more reactions to President Obama’s article, we recommend:
- Jonathan Blanks, Obama praises himself on criminal justice reform but he could have done so much more, Rare
This article points out that Obama fails to mention in his law review article how the federal government has responded to states’ growing liberalization of state marijuana laws and explains why that omission may have been intentional.
- Radley Balko, When Obama wouldn’t fight for science, The Washington Post
Radley Balko explains how the Department of Justice denounced a report by the President’s Council of Advisors on Science and Technology about forensic science and what the ramifications of the Department of Justice’s refusal to assess forensics might be.
- Mark Joseph Stern, The George W. Bush Advice Obama Should Have Taken, Slate
Slate published a new interview with Margaret Colgate Love, who served as United States pardon attorney from 1990 to 1997. Love explains that Obama could have had a more meaningful clemency legacy if he had used his pardon power more or created a clemency commission like President Ford.
by Joshua Aiken and Wendy Sawyer,
December 30, 2016
It’s that time of the year again, when many of us like to take stock and commit to changes that will bring us closer to our goals. It’s not a bad time for policymakers to do the same.
Here at the Prison Policy Initiative, we often find it useful to look back at how our criminal justice system has evolved over time. Year-to-year fluctuations are less distracting from that perspective, so we can also identify the pivotal political changes that have had truly dramatic impacts, like the “tough on crime” policies that led to the current era of mass incarceration.
Looking forward, however, is harder when you are data-driven. It’s hard to tell how current policies will play out in the future, and the impact of policy changes is even harder to gauge. We have been warned about the dangers of extrapolating the results of past policy changes to predict the future, but this time of year encourages some imaginative thinking — so we extrapolated recent trends anyway. We hope that as new elected officials are preparing to take office, these rough projections will drive home the urgency of criminal justice reform.
To be taken with an extra-large grain of salt, here are our projections of how long it would take us to undo the aberrant buildup of correctional control in the U.S. since the 1970s, holding constant the current average yearly decline:
- It’ll be 2049 when the federal prison population returns to normal — 33 years from now.
- It’ll be 2122 when the state prison populations return to normal — 106 years from now.
- It’ll be 2084 when the local jail populations return to normal — 68 years from now.
- It’ll be 2098 when the population under probation and parole supervision returns to normal — 82 years from now.
(See how we chose the “normal” baseline in the methodology notes below.)
Policymakers can speed things up: for example, the federal prison population has declined drastically over the last five years, in large part due to policy changes. But, sadly, millions more Americans are going to be churned through jails, locked in prisons, and placed under correctional control unless lawmakers at all levels of government start taking criminal justice reform seriously. If the U.S. doesn’t make reducing the correctional population a policy priority, our children and even great-great-grandchildren are more than likely to be burdened by mass incarceration.
A few notes about methodology:
The late 1970s is an especially useful point of reference because it is right before the “war on crime” really took hold–incarceration rates had been relatively flat for decades and the number of people under correctional control had not yet exploded. In order to determine our baselines we used incarceration rates to ensure that 1975, 1977, and 1980 were representative of historical trends. We used 1975, 1977, and 1980 as our starting points, as those are the years the U.S. first started collecting yearly data on the two leading forms of correctional control: state prison populations (1975) and probation (1977). Before 1983, jail population data was recorded every ten years, so we used the count from 1980 as the closest match to the other baseline years. Federal prison population counts are available back to at least 1925; we used 1975 to match the state prison population count.
For the average yearly decline, we calculated the total decline in population from each correctional population’s peak to 2015, then divided by the number of years since the peak. To project future populations, we started with 2015’s population and subtracted the average decline for each subsequent year. This treats the annual population as an arithmetic sequence; we chose to make it as simple as possible.
These projections are for total counts, not rates, so they do not account for changes in population size. Extrapolating one set of data was dicey enough for us, without adding additional uncertainty about the size of the general population.
The data for our projections came from the Bureau of Justice Statistics 2015 updates: see our posts on the incarcerated population and the population under probation and parole supervision.
For the federal prison population, we used 1975 as our baseline (24,131 people) and 2011 (197,050) as our peak value with an average yearly decline since the peak (4,591/year) to arrive at our projection of 2049.
For the state prison population, we used 1975 as our baseline (216,462) and 2009 (1,365,688) as our peak value with an average yearly decline since the peak (11,255/year) to arrive at our projection of 2122.
For the local jail population, we used 1980 as our baseline (163,994) and 2008 (785,533) as our peak value with an average yearly decline since the peak (8,190/year) to arrive at our projection of 2084.
For the population under probation and parole supervision, we used 1977 as our baseline (990,157) and 2007 (5,119,047) as our peak value with an average yearly decline of the probation population since the peak (62,896/year) and an average yearly increase of the parole population since the peak (18,184/year) to arrive at our projection of 2098.