Cost of Santa Clara County's new jail soars; officials blame delays, inflation
Santa Clara County's new main jail, which critics have blasted as a wasted effort that will do little to deter crime, could end up costing almost twice as much as estimated two years ago, according to a newly released budget proposal.
The estimated cost of the 500-bed facility to be built at the 150 W. Hedding St. site of the main jail complex in San Jose has soared from $390 million to $689 million.
Approved on a 3-2 vote in late January, the new jail will rise where Main Jail South was razed in 2020. The project will entail demolishing Main Jail North next to it and possibly parts of Milpitas' Elmwood Correctional Facility.
Criminal justice reform activists have strongly criticized the county for pursuing the project, saying it should focus instead on treating mental health and drug addiction issues that are the root cause of many crimes.
In his presentation of the county's proposed 2022-23 budget to the Board of Supervisors on May 16, County Executive Jeff Smith blamed the new price tag on delays and the increased costs of raw building materials spurred by inflation.
He said in an interview May 17 the county received the $390 million estimate in January 2020 when supervisors first heard the initial proposal.
Between then and earlier this year when the supervisors approved the project, “the market changed dramatically,” Smith said. “The cost of labor, cost of (subcontractors) and the cost of raw materials went up.”
According to data collected by Ken Simonson, chief economist of Associated General Contractors of America, prices for materials like steel mill products have increased by 107% since 2020, while lumber and plywood prices rose 89%, copper and brass 77% and plastic 49%. Diesel fuel, which bulldozers, excavators and other construction vehicles use, has skyrocketed by 325%.
While Simonson said the 76% cost increase for the new jail may seem extreme, it can be explained by an “unprecedented” combination of factors putting pressure on the construction industry.
“(It's) quite a confluence of challenges for the industry,” he said.
In pushing for the new jail in January, Smith argued that the county's existing facilities are substandard and at a minimum 500 people classified as violent felons must be held in custody. He also argued that the new jail needs to be built to satisfy federal consent decrees the county entered in 2019 to resolve conditions in the jail system.
The new jail is described as a “Secure Treatment Center” in the budget presented to the supervisors and will include ADA-compliant housing units, mental health treatment beds and recreational spaces. To pay for the new facility, Smith's office is proposing the county issue a bond.
Supervisors Joe Simitian and Otto Lee, who both voted for the jail, were unavailable for interviews Tuesday. Mike Wasserman, who also voted for the jail, did not respond to a request for comment.
Supervisor Susan Ellenberg, who voted against the jail in January along with Supervisor Cindy Chavez, said in a statement there aren't enough details to justify why the jail's costs have risen so much and called the “Secure Treatment Center” label misleading.
The rising cost was also criticized on May 16 by groups that have opposed the jail from the start.
“The thing that is just beyond alarming with this proposal is when you're spending $689 million, it's not just that it is an incredible amount of money, you're making an intentional decision to take away dollars from other needs,” said Raj Jayadev, founder of the San Jose-based Silicon Valley De-Bug.
“And the fact that the proposal would consider putting dollars into an institution that we know disproportionately hurts communities of color in our county, that does not make the public more safe — if anything it destabilizes and makes our communities more vulnerable — and also allows the county to ignore alternatives that address why people end up in jail.”
Jayadev's organization was one of eight that signed a May 13 letter calling for the supervisors to reject the budget proposal to fund the jail. Other groups included the Law Foundation of Silicon Valley, the San Jose State Human Rights Institute and the Care First, Jail Last Coalition.
“If money is an expression of the County's priorities, then this budget clearly shows the County's appetite for incarceration,” the letter states. “It is clear from this budget proposal that the County Executive's office is attempting to trick the Board and community to fund their longstanding dream of a carceral facility. More so, it is also clearly out of line with what the Board even voted for in January.”
While a plan to replace the Main Jail North site has been in the works for years, the murder of George Floyd in May 2020 temporarily put it on hold, with supervisors looking for alternative ideas to tackle mental health and drug abuse issues. The supervisors launched focus groups in response. One study found that 10% of respondents wanted a new jail, 34% wanted a behavioral health facility and another 34% wanted a combination of both. Another study found a large group of individuals against the new jail project.
Despite the change in tune, the county administration proceeded with the new jail proposal in mid-November, upsetting activists who thought they had been promised widespread criminal justice reform plans.
The jail is part of a larger budget proposal from the county executive's office that totals $11.4 billion, the largest budget ever and a 17.5% increase from last fiscal year. A final vote on the budget is scheduled for June 16.
It's not the first time economic pressures have led the county to spend more money. In January, after approving a housing project for Peninsula teachers, the county agreed to lend the developers for the project $21 million to help cover increased construction costs. The loan will be paid back with the rent from future tenants.