2010 ncja national summit- levshin and chiu
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Tina Chiu | Director of Technical Assistance Valerie Levshin | Policy Analyst, Cost-Benefit Analysis Unit August 3, 2010
Informing Criminal Justice Policy and Practice through Cost-Benefit Analysis
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Making justice systems fairer and more effective through research and innovation
• Independent, nonprofit organization
• Technical assistance, research and demonstration projects
• Criminal and juvenile justice
Vera Institute of Justice
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Cost-Benefit Analysis Unit
• Provides general information and training on CBA
• Conducts CBA studies
• Advances knowledge and practice
• Connects interested stakeholders
• Helps others develop capacity
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What is Cost-Benefit Analysis?
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A tool that helps determine:
Is this program cost-effective?
How much does this program generate in cost-savings?
Which program will provide the greatest value for my money?
What is cost-benefit analysis (CBA)?
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Assists policymakers and funders in identifying cost-effective programs
Assists service providers in demonstrating the economic benefit of their programs
What is cost-benefit analysis (CBA)?
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Examine new prison construction
Identify alternatives to incarceration
Evaluate raising the age of juvenile jurisdiction
Assess the cost-effectiveness of IT initiatives
Examples of CBA Application
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Conducting a cost-benefit analysis
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1) Evaluate the program
2) Consider the perspective
3) Measure costs
4) Measure benefits – in dollars
5) Compare costs and benefits
CBA in 5 steps
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Costs Benefits • Job coaching • Support services • Payments to
participants
• Less spending on the justice system (prisons, jails, courts, police)
• Fewer victims
• Higher employment rates
• Healthier and more productive program participants
• Stronger communities
Which side is greater?
Example: an employment program for the formerly incarcerated
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cost of crime to New York justice agencies that operate jails, prisons,
police, courts & community supervision x
number of crimes the program prevents
= savings to the justice system
Monetizing benefits: justice system
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Monetizing benefits: justice system
• Marginal costs reflect actual cost-savings • Magnitude of the marginal costs depends
on the policy’s impact on the system
• Several approaches: 1) Regression analysis 2) Government agencies’ estimates 3) Capacity reductions
4) Budget review
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cost of crime to victims x
number of crimes the program prevents =
savings to victims
• Tangible • Intangible
Monetizing benefits: victims
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Income tax +
Labor output =
benefit to taxpayers from employment gains
Monetizing benefits: employment
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Monetizing benefits to participants, communities, and society can be difficult
• Need reliable evidence
• Need to limit assumptions
Monetizing benefits: other
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Cost-Effectiveness Analysis • How do the outcomes compare to the costs?
Cost-Analysis • How much does the thing cost? • Which option costs less?
Other economic assessments
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What can you do to get started?
• Collect data • Program costs • Program outcomes
• Identify internal/external analysts • Financial analysts • Researchers
• Review the literature • CBA’s of similar programs
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Resources
Justice Research and Statistics Association • CBA workshop, October 26 in Portland, ME
Washington State Institute for Public Policy • Publications at http://www.wsipp.wa.gov/
Pew Center on the States • Delivering Results initiative • Technical assistance to states
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More Resources
Urban Institute • Crime and Justice CBA studies
• District of Columbia Crime Policy Institute, in partnership with The Brookings Institution
Society for Benefit-Cost Analysis • Evidence and the “NEW” Policy Evaluation
conference, October 18-19 in Washington, D.C. • Journal of Benefit-Cost Analysis • http://benefitcostanalysis.org/
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Cost-Benefit Knowledge Bank
• Funded by the Bureau of Justice Assistance • Follow us on @CBKBank • Website • CBA Toolkit • Snapshots of CBA Literature • Roundtable Discussions • Podcasts, Videocasts, and Webinars • Community of Practice
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For more info
• Tina Chiu [email protected] (212) 376-3038
• Valerie Levshin
[email protected] (212) 376-3062
• http://www.vera.org/cba