1 Board of Corrections – Presentation Outline FY09 Emergency and Biennial (FY10 & FY11) Timeline FY09 Emergency and Biennial (FY10 & FY11) Timeline Items.

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Board of Corrections – Presentation OutlineBoard of Corrections – Presentation Outline FY09 Emergency and Biennial (FY10 & FY11) FY09 Emergency and Biennial (FY10 & FY11)

TimelineTimeline Items requiring BOC immediate action RItems requiring BOC immediate action R Review of current placeholders in the state Review of current placeholders in the state

budgetbudget Review of Public Law Chapter 653 Section 710 - Review of Public Law Chapter 653 Section 710 -

Timeline considerations in a normal Biennial/ Timeline considerations in a normal Biennial/ Supplemental processSupplemental process

Review of the budget process - Section 710Review of the budget process - Section 710 Establishing a Growth FactorEstablishing a Growth Factor

Review of Different Methods (Pros & Cons)Review of Different Methods (Pros & Cons) Wrap-upWrap-up Exhibits A-E – examples of the affects of different Exhibits A-E – examples of the affects of different

growth methodologies to the cap.growth methodologies to the cap.

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FY09 Emergency and Biennial FY09 Emergency and Biennial (FY10 & FY11) Timeline(FY10 & FY11) Timeline

September 1September 1stst budget submitted to Budget Office budget submitted to Budget Office as required by law.as required by law. BOC budget placeholders currently in state budget BOC budget placeholders currently in state budget

system.system. October 16October 16thth – Request for Decision - Deadline for – Request for Decision - Deadline for

all County Budget Submissionsall County Budget Submissions October through November – One-on-Ones with October through November – One-on-Ones with

DAFS and Governor DAFS and Governor November through December – Governor’s November through December – Governor’s

Recommendations and Departmental ReviewsRecommendations and Departmental Reviews January 2009 – Budget to LegislatureJanuary 2009 – Budget to Legislature

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Board of Corrections Board of Corrections Immediate Action ItemsImmediate Action Items

Request all County Budgets by October 16Request all County Budgets by October 16thth - Request - Request Establish County Growth Rates – OctoberEstablish County Growth Rates – October Collection and review of County and MDOC Budget Data – Collection and review of County and MDOC Budget Data –

Mid-OctoberMid-October BOC Review of Correctional Budgets and comparison to BOC Review of Correctional Budgets and comparison to

state budget placeholders – Mid-Octoberstate budget placeholders – Mid-October Current Budget PlaceholdersCurrent Budget Placeholders

FY09 Transition Reserve $1.5MFY09 Transition Reserve $1.5M FY09 Debt Service Difference $959,698 FY09 Debt Service Difference $959,698 FY10 Growth Placeholder $ 4,762,026 FY10 Growth Placeholder $ 4,762,026 FY10 Community Corrections $5,646,562 FY10 Community Corrections $5,646,562 FY10 Debt Service Difference $2,958,481 FY10 Debt Service Difference $2,958,481 FY11 Growth Placeholder $ 8,122,768FY11 Growth Placeholder $ 8,122,768 FY11 Debt Service Difference $2,306,632 FY11 Debt Service Difference $2,306,632 FY11 Community Corrections $5,646,562FY11 Community Corrections $5,646,562 A $20,000 BOC Admin. Appropriation is already included in the A $20,000 BOC Admin. Appropriation is already included in the

BOC baseline.BOC baseline.

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Growth Factor - § 710 – Budget TimingGrowth Factor - § 710 – Budget Timing

§ 710. County correctional services budget § 710. County correctional services budget procedure procedure

#1 . . . #1 . . . 6 months before the beginning of each 6 months before the beginning of each state fiscal yearstate fiscal year, . . . , . . . "the board," shall set a "the board," shall set a growth limitation for the correctional services growth limitation for the correctional services expenditures in the new fiscal year for each county expenditures in the new fiscal year for each county budgetbudget..

Six months prior to the state fiscal year is Six months prior to the state fiscal year is January. The budget has to be submitted to the January. The budget has to be submitted to the State Budget Office by State Budget Office by September 1September 1stst by law by law four months prior.four months prior.

The BOC needs to The BOC needs to establish growth factors by establish growth factors by April 15April 15thth in order for the Counties to create a in order for the Counties to create a budget using the growth factor, allow time for budget using the growth factor, allow time for review and inputreview and input..

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NormalNormal Supplemental/ Biennial Budget Supplemental/ Biennial Budget Timeline Timeline (proposed)(proposed)

By April 15By April 15thth – the BOC sets growth rate. – the BOC sets growth rate. April 15April 15thth through May 15 through May 15thth - Counties prepare correctional - Counties prepare correctional

services budgets and submit budgets to the MDOC Service services budgets and submit budgets to the MDOC Service Center.Center.

May 15May 15thth through May 22 through May 22ndnd – the MDOC Service Center – the MDOC Service Center compiles County and MDOC budget information.compiles County and MDOC budget information.

May 22May 22ndnd through May 29 through May 29thth – the Budget Process Group will – the Budget Process Group will analyze the County Budgets and address any issues.analyze the County Budgets and address any issues.

May 29May 29thth through June 5 through June 5thth – Budget Process Group presents – Budget Process Group presents budget information to the BOC Working Group Committee for budget information to the BOC Working Group Committee for review and to address any issues.review and to address any issues.

June 6June 6thth - The budgets are submitted to the BOC for review. - The budgets are submitted to the BOC for review. June 6June 6thth through August 15 through August 15thth – BOC reviews budgets, – BOC reviews budgets,

conducts interviews, addresses budget adjustments, conduct conducts interviews, addresses budget adjustments, conduct budget hearings as necessary, and adopt the budget.budget hearings as necessary, and adopt the budget.

August 15August 15thth – Budget is submitted to the MDOC Service – Budget is submitted to the MDOC Service center for input to the State Budget System.center for input to the State Budget System.

September 1September 1stst – Budget submission deadline to the Budget – Budget submission deadline to the Budget Office as required by law.Office as required by law.

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NormalNormal Biennial/Supplemental Biennial/Supplemental Budget Timeline Budget Timeline (proposed)(proposed)

ActivityBudget Process Group works with Working Group & BOC to establish Growth FactorsCounties Prepare Correctional Budgets based on BOC established growth factors

Service Center Compiles County Correctional BudgetsBudget Process Group Reviews Compiled County (statewide) Budgets for submission to BOCWorking Group Reviews Budge SubmissionsBOC Reviews budget submissions and conducts county interviewsService Center Enters budget into budget systemService Center works with Budget Office on the budget submissionOne-on-ones conducted with DAFS Commissioner & creation of Governor's budgetGovernor's Recommendations & Departmental ReviewsSubmission to the Legislature January 9thLegislative budget review process - January 9th through April (?) June(?)

BOC Process TimelineJuneApril October November DecemberJulyMay August September January

State Budget Process Timeline

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§ 710 Budget Process Summary§ 710 Budget Process Summary If the county correctional services budget does not If the county correctional services budget does not

exceed the growth limitation the board must exceed the growth limitation the board must accept the county commissioners' approval of the accept the county commissioners' approval of the county's correctional services budget.county's correctional services budget.

If a county correctional services budget submitted If a county correctional services budget submitted to the board exceeds the growth limitation or is to the board exceeds the growth limitation or is inconsistent with a directive of the board the board inconsistent with a directive of the board the board must further review the proposed budget together must further review the proposed budget together with any supplementary material prepared by the with any supplementary material prepared by the county commissioners, county correctional county commissioners, county correctional services administrators, the Department of services administrators, the Department of Corrections or any other person or entity from Corrections or any other person or entity from whom the board chooses to receive supplementary whom the board chooses to receive supplementary material. material.

If the county correctional services budget If the county correctional services budget submitted exceeds the growth limitation or is submitted exceeds the growth limitation or is inconsistent with board directives, the board must inconsistent with board directives, the board must further review, amend and adopt a correctional further review, amend and adopt a correctional services budget for the county.services budget for the county.

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§ 710 Budget Process Summary § 710 Budget Process Summary (continued)(continued) The board may hold a hearing under this subsection, The board may hold a hearing under this subsection,

except that it shall hold a hearing on a county except that it shall hold a hearing on a county correctional services budget when the county requests correctional services budget when the county requests a hearing. If the board holds a hearing under this a hearing. If the board holds a hearing under this subsection, the provisions of Title 5, chapter 375, subsection, the provisions of Title 5, chapter 375, subchapter 4 apply.subchapter 4 apply.

Budget adjustment process. For a county Budget adjustment process. For a county correctional services budget submitted to the board, correctional services budget submitted to the board, the board may amend or accept the proposed budget the board may amend or accept the proposed budget provided that the total estimated revenues, together provided that the total estimated revenues, together with the amount of county tax to be levied equal the with the amount of county tax to be levied equal the total estimated expenditures.total estimated expenditures.

Adoption of budget. After review of a county Adoption of budget. After review of a county correctional services budget submitted to the board correctional services budget submitted to the board under subsection 2, a hearing, if necessary pursuant under subsection 2, a hearing, if necessary pursuant to subsection 3, and the adjustment process under to subsection 3, and the adjustment process under subsection 4, the board shall adopt a final correctional subsection 4, the board shall adopt a final correctional services budget for the county and transmit that services budget for the county and transmit that budget to the county commissioners.budget to the county commissioners.

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§ 710 Budget Process Summary § 710 Budget Process Summary (continued)(continued)

Assessment of taxes. Assessment of taxes. 2-A. Tax assessment for correctional services. 2-A. Tax assessment for correctional services.

The counties shall annually collect no more The counties shall annually collect no more than than $62,452,804$62,452,804 (the cap) (the cap) from municipalities from municipalities for the provision of correctional services, for the provision of correctional services, excluding debt service, in accordance with this excluding debt service, in accordance with this subsection.subsection.

2-B. 2-B. The countiesThe counties shall collect taxes from shall collect taxes from municipalities for the purpose of retiring the municipalities for the purpose of retiring the county jailcounty jail debt in existence as of July 1, 2008 debt in existence as of July 1, 2008 until the debt is finally retired.until the debt is finally retired.

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Establishing a Growth FactorEstablishing a Growth Factor

Please keep in mind the following analysis is Please keep in mind the following analysis is relative to the cap and the information relative to the cap and the information

we have we have at this timeat this time. Many of the . Many of the percentage distributions and factors used percentage distributions and factors used

will change as the economy and Maine will change as the economy and Maine policy making changes.policy making changes.

Growth factors will be set in two ways: Growth factors will be set in two ways: 1.1. An overall correctional growth factor, An overall correctional growth factor,

and and 2.2. Growth factors specific to each County.Growth factors specific to each County.

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Establishing a Growth FactorEstablishing a Growth Factor In establishing a growth factor no one method is In establishing a growth factor no one method is

correct; several methods can be used.correct; several methods can be used. Corrections population trendsCorrections population trends Historical trendsHistorical trends

County & MDOC Historical TrendsCounty & MDOC Historical Trends CPI(Consumer Price Indexes)CPI(Consumer Price Indexes)

National – Regional - Commodity SpecificNational – Regional - Commodity Specific Political necessityPolitical necessity

In establishing a correctional growth rate a blend In establishing a correctional growth rate a blend of methods should be considered depending on of methods should be considered depending on the needs of corrections and the economic the needs of corrections and the economic circumstances at that time.circumstances at that time.

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Establishing a Growth Factor – Looking at Establishing a Growth Factor – Looking at Independent MethodsIndependent Methods

The following methods in determining The following methods in determining growth are independent of other growth are independent of other

methods. Various methods will be methods. Various methods will be reviewed highlighting the Pros and reviewed highlighting the Pros and Cons of each on their own merit. Cons of each on their own merit.

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Growth Factor – The Use of Blended RatesGrowth Factor – The Use of Blended Rates

ProsPros Uses a variety of Indexes to establish a rate:Uses a variety of Indexes to establish a rate:

TypesTypes CPI – National, Regional, Commodity SpecificCPI – National, Regional, Commodity Specific PopulationPopulation Historical GrowthHistorical Growth Political NecessityPolitical Necessity

Allows flexibility in areas that may be affected more than Allows flexibility in areas that may be affected more than others by market trends.others by market trends.

Represents actual market activityRepresents actual market activity Widely used index in projecting needsWidely used index in projecting needs

ConsCons May not meet specific needs of the State or each County.May not meet specific needs of the State or each County. Source data – User must understand what they are Source data – User must understand what they are

looking at and how to use it.looking at and how to use it.

See Exhibit ASee Exhibit A

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Establishing a Growth Factor – Corrections Population TrendsEstablishing a Growth Factor – Corrections Population Trends

Population Trends Actual & Projected

3800

3900

4000

4100

4200

4300

4400

4500

4600

2007 2008 2009 2010 2011 2012 2013 2014 2015

Po

pu

lati

on

n

Combined ADP Combined Capacity

Year Over Year Population GrowthYear Over Year Population Growth2009 2010 2011 2012 2013 2014 2015

ADP % Growth 3.72% 3.09% 2.26% 0.96% 1.51% 1.63% 1.94%

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Growth Factor – Corrections Population TrendsGrowth Factor – Corrections Population Trends

ProsPros Addresses variable component resulting from Addresses variable component resulting from

population changes in corrections.population changes in corrections. ConsCons

Does not address fixed components of Does not address fixed components of corrections:corrections:

PersonnelPersonnel InfrastructureInfrastructure Market Forces (fuel, food, electric)Market Forces (fuel, food, electric)

On a percentage basis variable cost represents On a percentage basis variable cost represents a significantly smaller portion of the cost of a significantly smaller portion of the cost of corrections as opposed to its fixed cost.corrections as opposed to its fixed cost.

See Exhibit BSee Exhibit B

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Establishing a Growth Factor – Consumer Price Index NationalEstablishing a Growth Factor – Consumer Price Index National

The CPI(Consumer Price Index) is the most widely used The CPI(Consumer Price Index) is the most widely used measure of consumer price inflation. The CPI measures the measure of consumer price inflation. The CPI measures the average change over time in the prices paid by urban average change over time in the prices paid by urban consumers for goods and services. The BLS(Bureau of consumers for goods and services. The BLS(Bureau of Labor Statistics) of the US Department of Labor collects the Labor Statistics) of the US Department of Labor collects the CPI price information and calculates the CPI statistics.CPI price information and calculates the CPI statistics.

CPI-U & CPI-WCPI-U & CPI-W CPI-U (All Urban Consumers) measures consumer price CPI-U (All Urban Consumers) measures consumer price

inflation for all U.S. Residents of urban areas, which accounts inflation for all U.S. Residents of urban areas, which accounts for about 87 percent of the U.S. population. for about 87 percent of the U.S. population.

CPI-W (Urban Wage and Clerical Workers) measures consumer CPI-W (Urban Wage and Clerical Workers) measures consumer price inflation for a subset of the CPI-U population: residents of price inflation for a subset of the CPI-U population: residents of urban areas who live in households that:urban areas who live in households that:

Receive more than half of their income from clerical or wage Receive more than half of their income from clerical or wage occupationsoccupations

Have one earner employed for at least 37 weeks during the Have one earner employed for at least 37 weeks during the previous 12 months.previous 12 months.

CPI-W covers about 32 percent of the U.S. populationCPI-W covers about 32 percent of the U.S. population

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Growth Factor – National CPI-U, CPI-WGrowth Factor – National CPI-U, CPI-W

ProsPros Addresses market changes as experienced by Addresses market changes as experienced by

consumers.consumers. ConsCons

Even though corrections is affected by market Even though corrections is affected by market changes, CPI-U is a consumer based changes, CPI-U is a consumer based assessment. The needs of corrections may not assessment. The needs of corrections may not mirror those of the market in general.mirror those of the market in general.

CPI is a composite average and does will temper CPI is a composite average and does will temper volatile commodities such as food and fuel.volatile commodities such as food and fuel.

Labor market dynamics in Maine may also not Labor market dynamics in Maine may also not mirror what is happening regionally or mirror what is happening regionally or nationally.nationally.

See Exhibit CSee Exhibit C

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Establishing a Growth Factor – CPI-U New England – Establishing a Growth Factor – CPI-U New England – Commodity SpecificCommodity Specific

ProsPros Addresses market changes as experienced by Addresses market changes as experienced by

consumers specific to New England.consumers specific to New England. Statistics are specific by commodity.Statistics are specific by commodity. Closely mirror rates experienced by the state Closely mirror rates experienced by the state

and corrections.and corrections. ConsCons

May not mirror the labor market dynamics in May not mirror the labor market dynamics in corrections.corrections.

Will not address specific correction wide Will not address specific correction wide initiatives.initiatives.

Exhibit DExhibit D

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Growth Factor – Corrections Historical Budget TrendsGrowth Factor – Corrections Historical Budget Trends

ProsPros Shows historical performanceShows historical performance A good gauge of what may have worked and A good gauge of what may have worked and

what didn’twhat didn’t ConsCons

May perpetuate bad budgeting habitsMay perpetuate bad budgeting habits Will not include new initiatives or visionsWill not include new initiatives or visions Funds may be misapplied and not used where Funds may be misapplied and not used where

most neededmost needed

Exhibit EExhibit E

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Establishing a Growth Factor – Political NecessityEstablishing a Growth Factor – Political Necessity

Fuel prices, social needs, the upcoming Fuel prices, social needs, the upcoming presidential/ local elections and the general state presidential/ local elections and the general state of the economy are all factors that would be of the economy are all factors that would be considered. considered.

Limited resources and growing needs on tax Limited resources and growing needs on tax revenue can cause shifts in resources to where revenue can cause shifts in resources to where they are most needed at a given time.they are most needed at a given time. For example during the last Biennium the For example during the last Biennium the

Department of Corrections was flat funded in Department of Corrections was flat funded in All Other (Contractual and Commodities) and All Other (Contractual and Commodities) and received no capital funding.received no capital funding.

The current biennium anticipates a revenue The current biennium anticipates a revenue shortfall of approximately $431M shortfall of approximately $431M (as of August (as of August budget instructions).budget instructions).

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Establishing a Growth Factor – Mixing FactorsEstablishing a Growth Factor – Mixing Factors

Use a composite of Population Growth and State Use a composite of Population Growth and State Planning CPI.Planning CPI. In 2008 20% of correctional expenditures are variable, In 2008 20% of correctional expenditures are variable,

leaving 80% fixed.leaving 80% fixed. Using this assumption and applying population growth Using this assumption and applying population growth

to 20% of the cap, and State Planning CPI to 80% of the to 20% of the cap, and State Planning CPI to 80% of the cap would look as follows.cap would look as follows.

This example is specific to this point in time only. Do not use this information as a general assumption.

2008 2009

Cap 62,452,80480% 49,962,243 51,011,450

20% 12,490,561 12,955,192

63,966,642

2.42%

Using State Planning CPI

Using Inmate Population Growth

Total

Percentage Growth

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Establishing a Growth Factor – External Cost DriversEstablishing a Growth Factor – External Cost Drivers

Energy MarketEnergy Market Population TrendsPopulation Trends Labor Market DynamicsLabor Market Dynamics

Recruitment & RetentionRecruitment & Retention Food CostsFood Costs ProgramsPrograms Medical CostsMedical Costs Infrastructure – maintaining and new Infrastructure – maintaining and new (certificate of (certificate of

need) need) Building maintenance, vehicles and equipmentBuilding maintenance, vehicles and equipment

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Establishing a Growth Factor – Wrap-upEstablishing a Growth Factor – Wrap-up

A blended approach makes sense in establishing A blended approach makes sense in establishing a growth factor. It will:a growth factor. It will:

1.1. Allows vision and program needs to play a role. Allows vision and program needs to play a role.

2.2. Enable specific cost drivers to be addressed Enable specific cost drivers to be addressed independently.independently.

3.3. Provides consideration of other external costs Provides consideration of other external costs driven by market influences, policy changes or driven by market influences, policy changes or necessity.necessity.

4.4. Includes the use of all methods of growth Includes the use of all methods of growth determination: historical trends, CPI, and determination: historical trends, CPI, and population changes within corrections.population changes within corrections.

5.5. Provides flexibility and accuracy through Provides flexibility and accuracy through options.options.

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Exhibit AExhibit AEstablishing a Growth Factor – Blended ApproachEstablishing a Growth Factor – Blended Approach

Year over Year (July 2007 vs. July 2008)Year over Year (July 2007 vs. July 2008)

Personal Services – Use a composite (MDOC/ County) five year Personal Services – Use a composite (MDOC/ County) five year average average

Fuel – seven month average of CPI-U-NE – 18.7%Fuel – seven month average of CPI-U-NE – 18.7% Gas and Electric – CPI-U-NE - 12 month average– 10.41%Gas and Electric – CPI-U-NE - 12 month average– 10.41% Food – CPI-U-NE – 12 month average – 4.88%Food – CPI-U-NE – 12 month average – 4.88% Medical – CPI-U-NE 12 month average– 3.62%Medical – CPI-U-NE 12 month average– 3.62% Other Contractual and Commodities – State Planning CPI – 2.10%Other Contractual and Commodities – State Planning CPI – 2.10%

Index July '07 Jul '08 Change % Change FY08 Cap FY09 AnticipatedPersonal Services & Fringe 5.50% 46,248,218 48,791,588 Fuel CPI-U-NE 217.343 297.291 79.948 36.78% 1,241,240 1,697,821 Electric CPI-U-NE 196.605 217.064 20.459 10.41% 2,580,519 2,849,051 Food CPI-U-NE 214.469 224.933 10.464 4.88% 2,477,750 2,598,640 Medical CPI-U-NE 481.59 499.036 17.446 3.62% 7,512,528 7,784,676 Other Exp State CPI 2.10% 13,682,781 13,970,119

73,743,035 77,691,895 5.4%Composite Growth Rate

Total Appropriations Less Debt

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Exhibit BExhibit BEstablishing a Growth Factor – Corrections Population TrendsEstablishing a Growth Factor – Corrections Population Trends

2007 2008 2009 2010 2011 2012 2013 2014 2015Combined ADP 3800 3898 4043 4168 4262 4303 4368 4439 4525Combined Capacity 4363 4363 4511 4511 4511 4511 4511 4511 4511

Population Growth as a Percentage against the Cap:Population Growth as a Percentage against the Cap:

2009 2010 2011 2012 2013 2014 2015ADP % Growth 3.72% 3.09% 2.26% 0.96% 1.51% 1.63% 1.94%

2008 2009 2010 2011 2012 2013 2014 2015

Cap 62,452,804 64,775,959 66,778,678 68,284,723 68,941,615 69,983,029 71,120,574 72,498,445

Difference 2,323,155 2,002,719 1,506,045 656,892 1,041,414 1,137,545 1,377,871

Growth 2009 to 2015 11.9%

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Exhibit CExhibit CEstablishing a Growth Factor – CPI NationalEstablishing a Growth Factor – CPI National

Population Growth using CPI-U from the State Planning Office

2008 2009 2010 2011 2012Wachovia 2.3% 2.1% 2.1%Congressional Budget Office 2.3% 2.3% 2.1% 1.9% 1.9%State Planning Office 2.3% 2.1% 2.1% 2.2% 2.1%US Bureau of Labor 2.3% 2.4% 2.3% 2.3% 2.3%

CPI-U

2008 2009 2010 2011 2012

Cap 62,452,804 63,889,218 65,230,892 66,600,741 68,065,957

Difference 1,436,414 1,341,674 1,369,849 1,465,216

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Exhibit DExhibit DEstablishing a Growth Factor – CPI Urban NortheastEstablishing a Growth Factor – CPI Urban Northeast

FY08 Cap FY09

Professional Services 3.43% 46,248,218$ 47,835,724$ Fuel and utilities 10.59% 1,241,240$ 1,372,660$ Electricity 4.35% 2,580,519$ 2,692,732$ Food 4.71% 2,477,750$ 2,594,470$ Medical 4.33% 7,512,528$ 7,838,115$ All items less food and energy 2.10% 13,682,781$ 13,970,081$

73,743,036$ 76,303,781$

3.47%Composite Growth

Northeast Urban (all cities)

Annual Average CPI Increase (Jun06:Jul07 - Jun07:Jul08)

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Exhibit DExhibit DEstablishing a Growth Factor – CPI-U MA, NH, ME, CTEstablishing a Growth Factor – CPI-U MA, NH, ME, CT

CPI-U New England July ’07 to July ‘08CPI-U New England July ’07 to July ‘08 Fuel & Utilities – 36.79%Fuel & Utilities – 36.79%

Electricity – 10.41%Electricity – 10.41% Natural Gas – 26.22%Natural Gas – 26.22% Medical Care – 3.63%Medical Care – 3.63% Food – 4.88%Food – 4.88%

Partial Data Only. Represents a good portion of Correctional Overhead, but not all!

2008 CAP PI-U Northeast Estimated FY09 Difference

Food 2,477,750 4.88% 2,598,664 120,914 Fuel 1,241,240 26.38% 1,568,679 327,439 Utilities 2,580,519 10.41% 2,849,150 268,632 Medical 7,512,528 3.63% 7,785,233 272,705

13,812,037 14,801,727 989,690 7.2%Composite Growth for these Expense areas

CPI-U - New England

Sub-Total

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Exhibit EExhibit EEstablishing a Growth Factor – Historical GrowthEstablishing a Growth Factor – Historical Growth

2002 2003 2004 2005 2006 2007 BudgetCounty UARF Actuals 43,850,018 50,666,292 56,166,200 60,292,837 66,651,187 68,085,701

15.54% 10.86% 7.35% 10.55% 2.15%Average Growth 9.29%

(FY03 - FY06)

2002 2003 2004 2005 2006 2007MDOC Actuals 65,532,180 69,601,332 71,888,516 77,813,638 82,976,384 85,780,906

6.21% 3.29% 8.24% 6.63% 3.38%Average Growth 5.55%

(FY03 - FY06)

109,382,198 120,267,624 128,054,716 138,106,474 149,627,571 153,866,606

9.95% 6.47% 7.85% 8.34% 2.83%7.09%

(FY03 - FY06)

2008 2009 2010 2011 2012

Cap 62,452,804 66,880,878 71,622,914 76,701,174 82,139,496

Difference 4,428,074 4,742,036 5,078,260 5,438,322

Combined MDOC & County