Contents

• Appropriations for BOP
• Trends in BOP's Total Appropriations
• Trends in BOP Appropriations by Account
• Trends in BOP's Funding by Decision Unit
• Requested Versus Enacted Funding for BOP
• Per Capita Cost of Incarceration
• Appropriations for BOP Relative to Those for the Department of Justice

Summary

The Bureau of Prisons (BOP) is the largest correctional agency in the country in terms of the number of prisoners under its jurisdiction. BOP must confine any offender convicted and sentenced to a term of imprisonment in a federal court.

Changes in federal criminal justice policy since the early 1980s spurred growth in the federal prison population. The total number of inmates under BOP's jurisdiction increased from approximately 25,000 in FY1980 to over 205192,000 in FY2015. The sustained growth inFY2016. While the federal prison population has necessitated an increase in appropriations for BOP's operations and infrastructurein FY2016 is nearly 7 times larger than what it was in FY1980, the number of inmates under the BOP's jurisdiction peaked in FY2013 at approximately 219,000 inmates. The federal prison population has decreased each fiscal year from FY2013 to FY2016.

BOP's appropriations increased by nearly $7.149 billion from FY1980 ($330 million) to FY2016 ($7.479 billion)to FY2016, which was the peak of BOP's nominal appropriations. Between FY1980 and FY2016, the average annual increase in BOP's appropriations was approximately $199 million. The nearly continuous increase in BOP's appropriations is in large part driven by an unbroken year-by-year increase in BOP's Salaries and Expenses (S&E) account. A significant share of BOP's S&E funding has been dedicated to providing for the care and security of inmates housed in BOP facilities, though an increasing share of S&E funding has been dedicated to contracting for additional bedspace in private prisons and Residential Reentry Centers (i.e., halfway houses).

A comparison of requested and enacted funding for BOP's S&E and Buildings and Facilities (B&F) accounts shows that Congress has been somewhat more likely to fund the Administration's request for prison construction and less likely to fully fund the Administration's request for the upkeep and care of the prison population. In the 37 fiscal years between FY1980 and FY2016, appropriations were lower than the Administration's request for the B&F account 16 times. Appropriations were lower than the request for the S&E account 23 times.

The overall nominal per capita cost of incarcerating an inmate in the federal system has steadily increased from FY2000 to FY2015, from approximately $22,000 per inmate to nearly $32,000 per inmate. However, after adjusting for inflation, the overall cost of incarceration has been relatively flat since FY2000. This suggests that increases in BOP's appropriations are, in part, attributable to the growing number of inmates BOP has to incarcerate rather than increasing costs per inmate.

Its appropriations decreased by $340 million in FY2017.

BOP's annual budget is divided between two major accounts: Salaries and Expenses (S&E, i.e., the operating budget) and Buildings and Facilities (B&F, i.e., the capital budget).The nearly continuous increase in BOP's appropriations is in large part driven by a nearly unbroken year-by-year increases in the S&E account. Funding for the S&E account has continued to increase even though the prison population decreased from FY2013 to FY2016. An increasing per capita cost of incarceration might explain why funding for the S&E account has not decreased along with the prison population, but it might also be due to the fact that the prison population has not decreased to a point where BOP can reduce staff and shutter prisons.

The nominal per capita cost of incarcerating an inmate in the federal system has increased every fiscal year from FY2000 to FY2016, from approximately $22,000 per inmate to nearly $35,000 per inmate. After adjusting for inflation, the overall cost of incarceration was relatively flat from FY2000 to FY2012, but in recent fiscal years increases in per capita costs have started to outstrip inflation.

A comparison of requested and enacted funding for BOP's S&E and B&F accounts shows that Congress has been somewhat more likely to fund the Administration's request for prison construction and less likely to fully fund the Administration's request for operating the federal prison system. From FY1980 to FY2017, appropriations were lower than the Administration's request for the B&F account 16 times while appropriations were lower than the request for the S&E account 24 times.

One concern among some policymakers is that BOP's expanding budget is starting to consume a larger share of the Department of Justice's (DOJ's) overall annual appropriations. A review of funding for DOJ and BOP show that since FY1980 both BOP's total budget and the S&E account have, in general, encompassed a growing share of DOJ's annual appropriations.

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Appropriations for the Bureau of Prisons (BOP): In Brief

The Bureau of Prisons (BOP) is the largest correctional agency in the country in terms of the number of prisoners under its jurisdiction.¹ BOP was established in 1930 to house federal inmates, professionalize the prison service, and ensure consistent and centralized administration of the federal prison system.² BOP must confine any offender convicted and sentenced to a term of imprisonment in a federal court.

Changes in federal criminal justice policy since the early 1980s—enforcing a growing number of federal crimes, replacing indeterminate sentencing with a determinate sentencing structure through sentencing guidelines, and increasing the number of federal offenses subject to mandatory minimum sentences—have led to continued led to rapid growth in the federal prison population. The total number of inmates under BOP's jurisdiction increased from approximately 25,000 in FY1980 to over 205219,000 in FY2015FY2013.³ Between FY1980 and FY2013, the federal prison population increased, on average, by approximately 5,900 inmates annually. However, since the peak in FY2013, the number of inmates in the federal prison system has decreased in each of the past two fiscal years.

The annual growthdecreased each subsequent fiscal year to approximately 192,000 inmates in FY2016.⁴ Generally, the increase in the federal prison population has necessitated an increase in appropriations for BOP's operations and infrastructure. In FY1980, Congress appropriated $330.0 million for BOP; by FY2016, the total appropriation for BOP reached $7.479 billion.

, which was the largest nominal appropriation ever for BOP. Appropriations for BOP have generally continued to increase since FY2013 (FY2017 was the exception) even though the prison population has decreased since that time. Increasing appropriations for BOP, despite the declining prison population, could be the result of a growing per capita cost of incarceration or BOP's need to maintain staffing levels commensurate with the size of the prison population.

This report provides an overview of BOP's appropriations since FY1980. Specifically, this report examines trends in BOP's total appropriations, changes in funding for BOP's appropriations account, and trends in funding for the decision units under BOP's appropriations accounts. The report provides a brief analysis of how the Administration's requested funding for BOP compares to enacted appropriations. It also discusses changes in the per capita cost of incarceration and how appropriations for BOP have changed relative to those for the Department of Justice, both issues that have been of interest to policymakers.

Appropriations for BOP

Trends in BOP's Total Appropriations

As shown in Figure 1, BOP's appropriations increased by nearly $7.149 billion from FY1980 to FY2016. FY2016 was the peak, in nominal terms, for BOP's funding. BOP's funding decreased by $340 million in FY2017. Between FY1980 and FY2016, the average annual increase in BOP's appropriations was approximately $199 million. The increasing appropriations for BOP generally coincided with the steadyan increase in the number of inmates under BOP's jurisdiction.

This trend changed somewhat in recent years. BOP's appropriations increased each fiscal year from FY2014 to FY2016 even though the total number of federal inmates decreased in each of those fiscal years.

Figure 1 also shows that BOP's appropriations have increased at a rate that is significantly greater than inflation, as indicated by the positive slope on the inflation-adjusted line in the figure. In FY2017 . In inflation-adjusted dollars, BOP's appropriations increased 783% between787% from FY1980 and FY2016.

to FY2016. BOP's appropriations increased 732%, in inflation-adjusted dollars, when accounting for the decrease in appropriations for FY2017.⁵

It has been argued that even though appropriations for BOP are discretionary, they are effectively mandatory because "[b]y law, the BOP must accept and provide for all [f]ederal inmates, including but not limited to inmate care, custodial staff, contract beds, food, and medical costs. BOP cannot control the number of inmates sentenced to prison, and unlike other [f]ederal agencies, cannot limit assigned workloads and thereby control operating costs."⁴

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Figure 1. Nominal and Adjusted Appropriations for the Bureau of Prisons, FY1980-FY2016 FY2017 Appropriations in billions of dollars

Source: U.S. Department of Justice, Bureau of Prisons. Notes: Nominal appropriations were adjusted for inflation using the Gross Domestic Product (GDP) Chained Price Index presented in Table 10.1 of the FY2017FY2018 Budget of the U.S. Government. Inflation-adjusted amounts are presented in FY2016FY2017 dollars. The spike in BOP's funding for FY1990 was the result of Congress appropriating $1.512 billion for the B&F account (see Table A-1). The FY2013 enacted amount reflects the amount sequestered per the Budget Control Act of 2011(P.L. 112-25).

Trends in BOP Appropriations by Account

Nearly all of BOP's operations are funded through annual appropriations provided by Congress.⁵7 BOP's annual budget is divided between two major accounts: Salaries and Expenses (S&E) and Buildings and Facilities (B&F). The S&E account (i.e., the operating budget) provides for the custody and care of federal inmates and for the daily maintenance and operations of correctional facilities, regional offices, and BOP's central office in Washington, DC. It also provides funding for the incarceration of federal inmates in state, local, and private facilities. The B&F account (i.e., the capital budget) provides funding for the construction of new facilities and the modernization, repair, and expansion of existing facilities.⁶

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Figure 2. Appropriations for BOP, by Account, FY1980-FY2017FY1980-FY2016 Appropriations in billions of nominal dollars

Source: U.S. Department of Justice, Bureau of Prisons. Notes: Amounts in Figure 2 include all supplemental appropriations and any rescissions of enacted budget authority, but they do not include rescissions of unobligated balances. From FY1980 to FY1995, funding for the National Institute of Corrections (NIC) was included in a separate account. Since FY1996, funding for the NIC has been included in the S&E account. In Figure 2this figure, funding for the NIC for FY1980-FY1995 was added to the S&E account to make funding for the S&E account comparable across fiscal years. The FY2013-enacted amount reflects the amount sequestered per the Budget Control Act of 2011(P.L. 112-25).

Two trends emerge from a review of BOP's appropriations from FY1980 through FY2016FY2017. First, while there has been a nearly continuous increase in the overall appropriations for BOP, it is in large part driven by an unbroken year-by-yearalmost continuous increase in appropriations for BOP's Salaries and Expenses (S&E) account since FY1980 (see Figure 2). The one exception to this trend is the appropriation for FY2013, which is lower than the FY2012 appropriation for the S&E account due to the sequestration ordered pursuant to the Budget Control Act of 2011 (P.L. 112-25). It is not surprising that Congress would appropriate increasing amounts for the S&E account in light of the steadily growing federal prison population. Appropriations for the S&E account pay the salaries and benefits of both correctional officers and other institutional employees. BOP has had to hire more officers and other employees as it opens more prisons and supervises more inmates.

In general, appropriations for BOP's S&E account increased as the prison population increased, which is not surprising given that the S&E account funds the operation of the federal prison system, including the salaries and benefits of both correctional officers and other institutional employees. BOP hired more officers and other employees as it opened more prisons and supervised more inmates. However, funding for the S&E account has continued to increase, albeit at a reduced rate, even though the prison population has decreased each fiscal year from FY2013 to FY2016.⁹ BOP has continued to request increased funding for the S&E account even though it is housing fewer inmates, and Congress has continued to increase appropriations, though generally below the level requested. BOP notes that additional funding is needed to cover the cost of pay raises and benefits for employees, as well as to cover growing costs associated with inmate health care, food, and prison utilities. Also, during some of these years, BOP requested additional funding to increase its capacity to provide programs and services for inmates (e.g., reentry programming and mental health treatment) and to hire more staff to increase institutional safety, something BOP might not have been able to do during the years when the inmate population was growing at a sustained clip and resources were dedicated to providing basic levels of care and security.¹⁰ In addition, even though there are fewer inmates under the BOP's jurisdiction, the federal prison system is still operating over its rated capacity.¹¹ In short, the federal prison population has not declined enough that BOP could start to close prisons and reduce staff, which would help bring down the cost of the federal prison system.

Second, funding for the Buildings and Facilities (B&F) account is more irregular, with Congress appropriating more in some fiscal years and less in others. There are noticeable peaks and valleysThe irregularity in B&F funding, which are is likely the result of the cyclical nature of the expansion of BOP's prison capacity as more offenders entered the federal prison system. Congress would appropriate funding to help boost bedspace in the federal prison system; BOP would use that funding to plan and construct new prisons. Upon completion of the new prison, BOP's capacity would expand to an acceptable point, but it would need to expand again in later years as the prison population grewcontinued to grow, and the cycle would begin anew.

In FY2017, a $400 million decrease in funding for the B&F account was the primary reason why BOP's total appropriation decreased for FY2017.¹²

Trends in BOP's Funding by Decision Unit

Each of BOP's two appropriations accounts are divided into specific decision units, each of which fund more specific BOP operations. Examination of funding for the decision units provides more insight into how BOP allocates its annual appropriation in light of the challenges it has faced as it confined more inmates between FY1980 and FY2016 decision units, each of which fund specific aspects of BOP operations. The S&E account is divided into four decision units:

• Inmate Care and Programs: This decision unit covers the cost of inmate food, medical supplies, institutional and release clothing, welfare services, transportation, gratuities, staff salaries, and other operational costs of functions directly related to providing inmate care. It provides funding for inmate programs, including education and vocational training, psychological services, religious programs, and drug treatment. This decision unit also covers costs associated with regional and central office administration and support related to providing inmate care.
• Institution Security and Administration: This decision unit funds institution maintenance, motor pool operations, powerhouse operations, institution security, and other administrative functions. It also covers costs associated with regional and central office administrative and management support functions such as research and evaluation, systems support, financial management, budget functions, safety, and legal counsel.
• Contract Confinement: This decision unit provides for the costs associated with the confinement of federal inmates in contract facilities, which include private prisons, Residential Reentry Centers (RRC), state and local facilities, and home confinement. It provides funding for the management and oversight of contract confinement functions. This decision unit also provides funding for the National Institute of Corrections (NIC).
• Management and Administration: This decision unit provides funding for costs associated with general administration and provides funding for BOP's central office, regional offices, and staff training centers.

Since FY1999, approximately 80% of BOP's S&E funding has gone to combined appropriations for the Inmate Care and Programs and the Institution Security and Administration decision units. Funding for these two decision units has increased at about the same rate as funding for the S&E account overall. BetweenFrom FY1999 and FY2015to FY2017, funding for the Inmate Care and Programs decision unit increased 137141% and funding for the Institution Security and Administration decision unit increased 114123%. In comparison, funding for the S&E account increased 136143% over the same time period.

Funding for the Contract Confinement decision unit increased 297295% between FY1999 and FY2015FY2017. The steeper increase in funding for the Contract Confinement decision unit comes as BOP has relied on confining more inmates in contract facilities, along with growing demand for RRC bedspace (a byproduct of more inmates being released after serving a period of incarcerationimprisoned and eventually released after serving their prison sentences).

While funding for the Contract Confinement decision unit outpaced the growth of funding for the S&E account overall, funding for the Management and Administration decision unit grew at a rate below that of the S&E account. BetweenFrom FY1999 and FY2015to FY2017, funding for the Management and Administration decision unit increased 4974%.

The B&F account is divided into two decision units:

• New Construction: This decision unit covers lease payments for the Oklahoma Transfer Center, the salaries and administrative costs of staff involved in new prison construction, construction of inmate work program areas and expansion and conversion projects (i.e., additional special housing unit space).
• Modernization and Repair: This decision unit provides resources to undertake essential rehabilitation, modernization, and renovation of correctional facilities and their grounds. This includes modifications to facilities to accommodate correctional programs, repair or replace utilities systems and other critical infrastructure, repair projects at existing institutions, and maintain all systems and structures in a good state of repair.

SinceIn 10 of the 19 fiscal years since FY1999, a majority of the funding for the B&F account has been dedicated for new prison construction, though the amount dedicated for this purpose has decreased significantly (in FY2001, BOP allocated $710.8 million to new construction; in FY2015, it was $25.0 million). The decrease in the amount dedicated for new prison construction has been a function of BOP slowly scaling back on building new prisons.

. In fiscal years where funding for the B&F account increased, funding for new prison construction generally increased. On average, Congress appropriated $333 million for the B&F account from FY1999 to FY2017. Fiscal years in which funding for modernization and repair accounted for a majority of B&F funding were usually years in which funding for the B&F account was significantly below this average, usually when total B&F funding was less than $100 million.

Requested Versus Enacted Funding for BOP

A comparison of BOP's annual appropriations for its S&E and B&F accounts to the Administration's request for both accounts shows that Congress has been more likely to fund the Administration's request for prison construction and less likely to fully fund the Administration's request for the upkeep and care of the prison populationoperating the federal prison system (see Figure 3). The requested appropriation indicates what BOP believed it would need to properly manage the growing prison population each fiscal year. The data suggest that in many fiscal years BOP operated with a budget below what it felt was adequate given the growing number of inmates under its jurisdiction.

The data presented in Figure 3 show that betweenfrom FY1980 and FY2016to FY2017, Congress appropriated less than the Administration's request for the B&F account 16 times. Over the same time period Congress appropriated less than the Administration's request for the S&E account 2324 times.¹³ In contrast to this general trend, however, the amount appropriated for the S&E account between FY2007 and FY2010 actually exceeded the Administration's request. The additional amounts provided by Congress during these fiscal years, as noted by the House Committee on Appropriations, were to compensate for underfunding BOP in previous years, which resulted in inadequate staffing levels and shortfalls in inmate programs.⁷ Both14 In the past, both the House and the Senate appropriations committees reported that they felt the Administration's requests for BOP were inadequate for several years, which did not allow the bureauBOP to meet its basic operational needs.⁸15 However, appropriationsCongress has not raised similar concerns in more recent fiscal years. Appropriations for the S&E account have been below the Administration's request for fivesix of the past sixseven fiscal years, by an average of $242.6232 million.

Figure 3. Difference Between Appropriations and the Administration's Request for BOP's S&E and B&F Accounts Amounts in millions of dollars

Source: Appropriated amounts were provided by the U.S. Department of Justice, Bureau of Prisons. The Administration's requested amounts were taken from the appendix to the Budget of the United States Government, for FY1980-FY2016FY2017. Notes: Between FY1980 and FY1995, appropriations for the National Institute of Corrections (NIC) were provided in a separate account. After FY1995, the operating expenses for NIC are paid out of BOP's S&E account. Therefore, to make appropriations for the S&E account as comparable as possible, appropriations for the NIC for FY1980-FY1995 were added to appropriations for the S&E account. Between FY1996 and FY2000, BOP received an amount from the Violent Crime Reduction Trust Fund, which, according to BOP, was used for substance abuse treatment. As such, these amounts were also added to the S&E account.

Per Capita Cost of Incarceration

While it is not surprising that BOP's annual appropriations would increase along with the prison population—after all, more inmates require more care and supervision, which requires additional funding—the per capita cost of housing inmates has not fluctuated too much since FY2000 when adjusting for inflation. The overall nominal per capita cost of incarcerating an inmate in the federal system has steadily increased from FY2000 to FY2015 (see Figure 4). Over this time period, the cost of incarceration rose from approximately $22,000 per inmate to nearly $32,000 per inmate, an increase of 48%.

The increasing per capita cost of confinement is largelyAs noted above, appropriations for BOP have continued to increase even though the federal prison population has decreased in recent years. This trend might be partly explained by the increasing per capita cost for incarceration. As show in Figure 4, the nominal per capita cost of incarceration has increased from approximately $22,000 per inmate in FY2000 to almost $35,000 in FY2016, a 61% rise.¹⁶ From FY2000 to FY2012, the per capita cost of incarceration roughly increased at the same rate as inflation. However, since FY2013 increases in the per capita cost have started to outstrip inflation.

The increasing per capita cost of incarceration is partly due to inflationary pressures, such as the increasing cost of health care, food, clothing, and utilities.¹⁷ However, it is notable that the per capita cost of incarceration has increased at a greater rate than inflation since FY2013, which coincides with the decreasing prison population.¹⁸ Stable or increasing obligations combined with a decreasing prison population will result in increasing per capita costs because the shared inmate expenses are dispersed across fewer inmates.

Per capita costs are not equivalent to marginal costs (i.e., what it costs BOP to incarcerate one additional inmate). For example, if the per capita cost of incarceration is $22,000 per inmate and BOP's prison population decreased by 1,000 inmates, it does not mean that BOP would save $22 million. Per capita costs do not equate to marginal costs because per capita costs reflect the total amount BOP obligates in a fiscal year divided by that fiscal year's average daily population. Some costs (e.g., food and clothing expenses) would decrease if BOP incarcerated fewer inmates. However, obligations also account for items like staff salaries, which might not change until the prison population decreases to a point where BOP could close prisons and reduce staff. For example, if all of BOP's high security facilities hold 10% more inmates than their rated capacity and BOP's prison population decreases to a point where these facilities hold the same number of inmates as their rated capacity, it is likely that BOP would not reduce staffing at those prisons, which would mean that obligations for high security facilities for that fiscal year would not decline significantly.

Figure 4. Per Capita Cost of Incarceration, FY2000-FY2016

Source: U.S. Department of Justice, Bureau of Prisons.

Notes: Nominal appropriations were adjusted for inflation using the Gross Domestic Product (GDP) Chained Price Index presented in Table 10.1 of the FY2018 Budget of the U.S. Government. Inflation-adjusted amounts are presented in FY2016 dollars.

due to inflationary pressures, such as the increasing cost of health care, food, clothing, and utilities and the cost of hiring additional personnel to properly manage the inmate population.

Figure 4. Per Capita Cost of Incarceration, FY2000-FY2015

Source: U.S. Department of Justice, Bureau of Prisons. Notes: Nominal appropriations were adjusted for inflation using the Gross Domestic Product (GDP) Chained Price Index presented in Table 10.1 of the FY2017 Budget of the U.S. Government. Inflation-adjusted amounts are presented in FY2015 dollars.

When adjusted for inflation, the per capita cost of incarceration has been relatively flat since FY2000. As discussed above, BOP's appropriations have increased significantly since FY2000, slightly more than doubling since then. However, the inflation-adjusted per capita cost of incarceration has increased 10% over that same time period. The fact that BOP's nominal appropriations continued to increase while per capita costs remained relatively flat in real terms suggests that increases in BOP's appropriations are, in part, attributable to the growing number of inmates BOP has to incarcerate rather than increasing per-inmate costs.

Appropriations for BOP Relative to Those for the Department of Justice

One concern among some policymakers is that BOP's expanding budget is starting to consume a larger share of the Department of Justice's (DOJ) overall annual appropriations. Figure 5 shows what proportion of DOJ's annual discretionary budget was dedicated to BOP. BOP's overall budget is more susceptible to fluctuations due to changes in year-to-year appropriations for BOP's B&F account. The trend lines (the dashed lines in the figure) show that since FY1980, both BOP's total budget and the S&E account have, in general, encompassed a growing share of DOJ's annual appropriations, though the trend lines also indicate that BOP's share of DOJ's annual appropriations has not increased markedly. The noticeable spike in BOP's share of DOJ's annual appropriations in FY1990 was the result of Congress appropriating more than $1 billion for the B&F account. In addition, the decrease in BOP's share of DOJ's appropriations observed in FY2009, a break in a general upward trend that started in FY2000, was the result of Congress appropriating an additional $4 billion for DOJ under the American Recovery and Reinvestment Act of 2009 (P.L. 111-5).

Figure 5. BOP's Appropriation as a Share of DOJ's Discretionary Budget Authority, FY1980-FY2016

Source: BOP's annual appropriations data were provided by the U.S. Department of Justice, Bureau of Prisons. Annual discretionary budget authority data for the Department of Justice for FY1980-FY2016 were taken from Table 5.4 from the FY2017FY2018 Budget of the United States Government. Final FY2017 discretionary budget authority for DOJ was not provided in Table 5.4 of the President's FY2018 budget.

Appendix A. BOP Appropriations: Total and by Decision Unit

Appendix B. BOP Per Capita Costs

Author Contact Information

Footnotes

Information on BOP's appropriations can be found in Appendix A. U.S. Congress, Senate Committee on Appropriations, Subcommittee on Commerce, Justice, Science, and Related Agencies, Departments of Commerce and Justice, and Science, and Related Agencies Appropriations Bill, 2013, report to accompany S. 2323, 112^th Cong., 2^nd sess., April 19, 2012, S.Rept. 112-158 (Washington: GPO, 2012), p. 64.

Information on the Administration's requested funding for BOP can be found in Appendix A. 14.

1.	E. Ann Carson and Elizabeth Anderson, Prisoners in 20142015, U.S. Department of Justice, Office of Justice Programs, Bureau of Justice Statistics, NCJ 248955250229, Washington, DC, September 2015, p. 3December 2016, p. 5.
2.	U.S. Department of Justice, Bureau of Prisons, About the Bureau of Prisons, p. 1.
3.	Data on the federal prison population are provided by BOPnumber of federal prison inmates can be found at https://www.bop.gov/about/statistics/population_statistics.jsp.
4.	In FY2013, the number of inmates under the BOP's jurisdiction was 219,298; in FY2014 it was 214,149; in FY2015 it was 205,723; and in FY2016 it was 192,170. At the time this report was updated, FY2016 was the most recent fiscal year for which federal prison population data were available.	5.	6.
57.	The operations of the Federal Prison Industries (FPI) are supported by revenue generated through the sale of prisoner-made goods to federal agencies. In addition, some programs, goods, and services (such as compensation for inmates participating in non-FPI jobs) are paid for by funds generated through the sale of goods to inmates through the prison commissary.
68.	In addition to appropriations for the S&E and B&F accounts, Congress usually places a cap on the amount of revenue generated by the Federal Prison Industries that can be used for administrative expenses in the annual Commerce, Justice, Science, and Related Agencies appropriations act. Although Congress does not appropriate funding for the administrative expenses of FPI, the administrative expenses cap is scored as enacted budget authority.
79.	On average, appropriations for BOP's S&E account increased by 10% each fiscal year from FY1980 to FY2013. In comparison, S&E appropriations increased by 7% in FY2014, by 1% in FY2015, by 2% in FY2016, and by 1% in FY2017.
10.	In a September 2012 report, the Government Accountability Office noted some of the effects that a growing prison population had on the BOP's operations, including waiting lists for rehabilitative programs and risks to institutional security resulting from increasing staff-to-inmate ratios. U.S. Government Accountability Office, Bureau of Prisons: Growing Inmate Crowding Negatively Affects Inmates, Staff, and Infrastructure, GAO-12-473, September 2012, pp. 48-63.
11.	BOP reports that at the end of FY2016, the federal prison system was operating at 16% over its rated capacity. However, this is down from 30% overcrowding at the end of FY2014. U.S. Department of Justice, Bureau of Prisons, FY2018 Performance Budget, Congressional Submission, Salaries and Expenses, p. 7.
12.	For FY2016, Congress appropriated $444 million under the B&F account for the construction of a new facility in Letcher County, KY. BOP's FY2018 budget justification included a proposal to rescind this funding.
13.	U.S. Congress, House Committee on Appropriations, Omnibus Appropriations Act, 2009, committee print, 111th Cong., 1st sess., March 2009 (Washington: GPO, 2009), p. 274.
815.	Ibid. See also, U.S. Congress, House Committee on Appropriations, Departments of Transportation and Housing and Urban Development, and Related Agencies Appropriations Act, 2010, Conference Report to Accompany H.R. 3288, 111th Cong., 1st sess., December 8, 2009, H.Rept. 111-366 (Washington: GPO, 2009), p. 671; U.S. Congress, Senate Committee on Appropriations, Subcommittee on Commerce, Justice, Science, and Related Agencies, Departments of Commerce and Justice, and Science, and Related Agencies Appropriations Bill, 2013, report to accompany S. 2323, 112th Cong., 2nd sess., April 19, 2012, S.Rept. 112-158 (Washington: GPO, 2012), p. 65.
16.	BOP calculates the per capita cost of incarceration by dividing total obligations for the fiscal year by the average daily population.
17.	For example, BOP reports that obligations for inmate medical costs increased from approximately $400 million in FY2007 to approximately $675 million in FY2016. U.S. Department of Justice, Bureau of Prisons, FY2018 Performance Budget, Congressional Submission, Salaries and Expenses, p. 24.
18.	On average, the per capita cost of incarceration increased by 2% each fiscal year between FY2000 and FY2013. The per capita cost of incarceration increased 5% in FY2014, 4% in FY2015, and 9% in FY2016.