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

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 205,000 in FY2015. The sustained growth in the federal prison population has necessitated an increase in appropriations for BOP's operations and infrastructure.

BOP's appropriations increased by nearly $7.149 billion from FY1980 ($330 million) to FY2016 ($7.479 billion). 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.

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. 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.

---

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 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 205,000 in FY2015.³ Between FY1980 and FY2013, the federal prison population increased, on average, by approximately 5,900 inmates annually. However, the number of inmates in the federal prison system has decreased in each of the past two fiscal years.

The annual growth 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.

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. Between FY1980 and FY2016, the average annual increase in BOP's appropriations was approximately $199 million. The increasing appropriations for BOP coincided with the steady increase in the number of inmates under BOP's jurisdiction.

Figure 1 also shows that BOP's appropriations have increased at a rate that is significantly greater than inflation. In inflation-adjusted dollars, BOP's appropriations increased 783% between FY1980 and FY2016.

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

Figure 1. Nominal and Adjusted Appropriations for the Bureau of Prisons, FY1980-FY2016 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 FY2017 Budget of the U.S. Government. Inflation-adjusted amounts are presented in FY2016 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.⁵ 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

Figure 2. Appropriations for BOP, FY1980-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 2, 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 FY2016. 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-year 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.

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 valleys in B&F funding, which are likely the result of the cyclical nature of the expansion of BOP's prison capacity. Congress would appropriate funding to help boost bedspace in the federal prison system; BOP would use that funding to plan and construct new prisons. BOP's capacity would expand to an acceptable point, but it would need to expand again in later years as the prison population grew, and the cycle would begin anew.

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. 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 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. Between FY1999 and FY2015, funding for the Inmate Care and Programs decision unit increased 137% and funding for the Institution Security and Administration decision unit increased 114%. In comparison, funding for the S&E account increased 136% over the same time period.

Funding for the Contract Confinement decision unit increased 297% between FY1999 and FY2015. 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 incarceration).

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. Between FY1999 and FY2015, funding for the Management and Administration decision unit increased 49%.

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.

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.

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 population (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 between FY1980 and FY2016, 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 23 times. 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, as noted by the House Committee on Appropriations, were to compensate for underfunding BOP, which resulted in inadequate staffing levels and shortfalls in inmate programs.⁷ 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 bureau to meet its basic operational needs.⁸ However, appropriations for the S&E account have been below the Administration's request for five of the past six fiscal years, by an average of $242.6 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-FY2016. 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 largely 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 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 FY2017 Budget of the United States Government.

Appendix A. BOP Appropriations: Total and by Decision Unit

Appendix B. BOP Per Capita Costs

Author Contact Information

Footnotes

1.	E. Ann Carson, Prisoners in 2014, U.S. Department of Justice, Office of Justice Programs, Bureau of Justice Statistics, NCJ 248955, Washington, DC, September 2015, p. 3.
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 BOP at https://www.bop.gov/about/statistics/population_statistics.jsp.
4.	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. 64.
5.	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.
6.	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.
7.	U.S. Congress, House Committee on Appropriations, Omnibus Appropriations Act, 2009, committee print, 111th Cong., 1st sess., March 2009 (Washington: GPO, 2009), p. 274.
8.	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.