Trade prison money for college tuition, business tax cuts

Sunday, January 04, 2009

Saginaw News

Efforts to slash the inmate population and close prisons have stalled for years. That could change finally in 2009.

By the end of the month, the Justice Center at the Council of State Governments is to recommend steps to create a more effective and affordable crime-fighting strategy for Michigan.

The three goals are to increase the success of parole and probation, contain the costs of incarceration and enhance public safety in high-crime neighborhoods.

Between 1996 and 2006, the Michigan Department of Corrections budget grew 40 percent to $2 billion. In the same period, violent crime decreased 11 percent. Money well spent, right?

In 2006, Michigan had the highest rate of incarceration in the Midwest and the highest rate of violent crime.

Prisons ate 16 percent of general fund revenue generated primarily from income and business taxes in 1996. This year, they'll eat more than 26 percent.

Lawmakers have complained about the growth in the prison budget for two decades now. What will drive change in 2009 are the political demands from others with a stake in the state budget.

Michigan will spend less in per-student state aid to universities in 2009 than it did in 1996 -- $5,792 versus $5,966. And that's not adjusted for inflation.

Last month, business and civil leaders statewide insisted lawmakers enact long-term change in corrections policy with the aim of saving hundreds of millions annually. Such support is critical. Faced with a decision over whether to lock felons up or let them out, the safest course politically for lawmakers is to throw away the key.

But as those leaders pointed out, what's politically safe is fiscally unsustainable.

Boosting per-student state aid to universities by just the level of inflation over the past 13 years would cost roughly $600 million. The 2007 surcharge to the Michigan Business Tax, which businesses want cut, generated nearly $625 million in fiscal 2008.

Making college more affordable or improving the state's business climate can come only by either raising taxes on individuals or cutting spending.

Key to reducing prison costs is slashing the number of inmates in state facilities.

Significant savings require revamping sentencing guidelines, releasing eligible inmates upon their parole date if not earlier, reducing the number of those sent back to prison for violations and whacking operating costs. The Detroit Regional Chamber says taking those steps could free up $800 million.

That's real money. Lawmakers should realize there are better ways to spend it, and that cutting business taxes and college tuition are two of them.