1. Slide 1 Decisions, Decisions: Cost-Benefit Analysis & Justice Policymaking August 6, 2012 National Association of Sentencing Commissions Annual Conference Tina Chiu, Director of Technical Assistance

2. 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.

3. 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

4. Cost-Benefit Analysis What it is and isn’t

5. 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

6. 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 to http://cbkb.org/basics/glossary http://cbkb.org/basics/glossary

7. 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?

8. What cost-benefit analysis is not The right tool for everything A crystal ball The final arbiter

9. Building CBA Capacity

10. 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

11. 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

12. 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

13. Some early observations Getting people’s attention Focusing on outcomes and impacts Finding opportunities to educate and explain Supporting planning and sustainability Changing expectations

14. Contact information Tina Chiu tchiu@vera.org (212) 376-3038 Cost-Benefit Knowledge Bank for Criminal Justice Project website http://cbkb.orghttp://cbkb.org Twitter http://www.twitter.com/CBKBankhttp://www.twitter.com/CBKBank Facebook http://www.facebook.com/costbenefithttp://www.facebook.com/costbenefit

15. Slide 15 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.