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Decisions, Decisions: Cost-Benefit Analysis & Justice Policymaking

August 6, 2012

National Association of Sentencing Commissions Annual Conference

Tina Chiu, Director of Technical Assistance

Vera Institute of Justice

Making justice systems fairer and more effective through research and innovation.

Cost-Benefit Analysis Unit• Created to assist jurisdictions in making informed

decisions about justice system policies and programs.• Helps policymakers get clear and accessible

information on the economic pros and cons associated with criminal and juvenile justice investments.

CBKB

Vera’s National Cost-Benefit Knowledge Bank for Criminal Justice (CBKB) aims to broaden and deepen the understanding and use of CBA in criminal justice.

Funded by the U.S. Department of Justice’s Bureau of Justice Assistance.

• An information clearinghouse (http://cbkb.org)

• Center of a community of practice

• Education, training, and news

• Direct technical assistance to build CBA capacity

Cost-Benefit AnalysisWhat it is and isn’t

What cost-benefit analysis is

A type of economic analysis that:

•Compares the pros and cons of policies and programs

•Uses dollars as a common measure

•Looks at both the long-term and the short-term

•Includes the perspectives of multiple stakeholders

•Allows you to compare programs and policies that have different goals and objectives

The CBA process

1. Determine the impact of the initiative.

2. Determine which perspectives to include.

3. Measure costs and benefits (in dollars).

4. Compare costs and benefits.

5. Assess the reliability of the results.

For a glossary of CBA terms, refer tohttp://cbkb.org/basics/glossary

CBA and other economic tools

Cost analysis How much does this thing cost?

Fiscal impact analysis How will my budget be affected?

Cost-effectiveness analysis Can I get the same results for less?

Cost-benefit analysis How much do the benefits outweigh the costs? Would another program get me more for the money?

What cost-benefit analysis is not

• The right tool for everything

• A crystal ball

• The final arbiter

Building CBA Capacity

Purpose

• Answer questions, weigh options, and make informed decisions

• Conduct credible and consistent studies using local data and knowledge

• Develop a common understanding on how CBAs are conducted and how they should be used

• Articulate what’s important to your jurisdiction when making spending decisions and investments

Components

• Research and evaluation

• Data

• Technical / analytic skills and communications skills (“supply side”)

• Relevant policy questions

• Interested decision makers (“demand side”)

• Integration of CBA into planning, budgeting, decision making, monitoring, evaluation, and continuous improvement processes

Sites receiving assistance

Allegheny County, PA Office of Budget and Finance Day reporting centers, school-based probation

Denver, CO Denver Crime Prevention and Control Commission

Jail and reentry programming, juvenile assessment center, frequent front-end users

Kent, WA Kent Police Department Intelligence-led policing, programs to control corrections costs

York County, PA Criminal Justice Advisory Board DUI treatment court & procedural changes

Some early observations

• Getting people’s attention

• Focusing on outcomes and impacts

• Finding opportunities to educate and explain

• Supporting planning and sustainability

• Changing expectations

Contact information

Tina Chiutchiu@vera.org

(212) 376-3038

Cost-Benefit Knowledge Bank for Criminal Justice

Project website http://cbkb.org

Twitter http://www.twitter.com/CBKBank

Facebook http://www.facebook.com/costbenefit

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This project is supported by Grant No. 2009-MU-BX K029 awarded by the Bureau of Justice

Assistance. The Bureau of Justice Assistance is a component of the Office of Justice Programs,

which also includes the Bureau of Justice Statistics, the National Institute of Justice, the Office of

Juvenile Justice and Delinquency Prevention, and the Office of Sex Offender Sentencing,

Monitoring, Apprehending, Registering, and Tracking. Points of view or opinions in this

document are those of the author and do not represent the official position or policies of the

United States Department of Justice.