State could save $1 billion by closing 5 prisons, legislative analyst says
California could save nearly $1 billion annually if it closed five more state prisons, according to a new report from the Legislative Analyst's Office.
The nonpartisan analysts are once again urging Gov. Gavin Newsom's administration to cull the state's prison infrastructure as the number of inmates continues to decline. The savings could help Newsom shore up a projected $38 billion deficit — the LAO released a far higher projection of $73 billion last week.
The number of inmates, meanwhile, has fallen by 34,000 individuals in the last five years, according to the corrections department — a nearly 26% reduction to 96,033 in 2023 from 129,417 in 2019. The number of people incarcerated in state prisons sits at 93,579, according to figures compiled by the California Department of Corrections and Rehabilitation.
CDCR already has plans to close facilities such as Chuckawalla Valley State Prison in Blythe within the next year, according to the LAO's report. But the governor's current proposed budget would still use precious taxpayer dollars to fund an estimated 15,000 empty beds. The LAO projects that number will grow to 19,000 by 2028, even with the planned closure.
Put another way, without additional prison closures, about one-fifth of the state's total prison capacity could sit empty, according to the LAO.
“We recommend that the Legislature direct CDCR to begin planning to reduce capacity by the end of 2028,” the report says. “We estimate that deactivating five prisons, for example, could allow the state to save nearly $1 billion in ongoing General Fund costs.”
Newsom's administration has previously pushed back against additional closures due to fears of violating a federal court decree mandating population limits, among other concerns. However, the LAO analysis shows that CDCR could operate with a 2,500 empty bed “buffer” even after closing five of CDCR's 33 current sites.
The administration has already closed two stateowned facilities since 2021 — the Deuel Vocational Institution in Tracy and the California Correctional Center in Susanville.
The state has also closed eight prison yards at various state-owned prisons. The LAO noted, however, that closing yards doesn't yield the same savings as full closures.
“While individual yard deactivations do allow staffing levels to be reduced,” the report states, “prisons have many centralized staffing costs — such as for administration and perimeter security— that must be maintained regardless of the number of yards in operation.”
CDCR estimates past closures since 2021 have saved the General Fund about $620 million in operating expenses per year, according to the LAO's report. The closures also allowed the state to avoid funding infrastructure repairs that would've otherwise been needed to keep those facilities operating, such as a $32 million water treatment project at the Tracy facility.
Last year, the state's corrections department spent close to $14.8 billion in General Fund dollars, budget documents show — down from close to $16 billion the previous three years. Newsom's proposed budget for 2024-25 includes about $14.3 billion for CDCR.