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Population changes and medical contract negotiations drive corrections cost pressure, analysts say
Summary
Legislative analysts told the committee rising county and out‑of‑state placements and higher medical utilization are the primary drivers of supplemental requests for the Department of Correction. The agency estimates a negotiated contract could raise medical costs about 10%; if the contract goes to competitive bid the agency said costs could rise
The Joint Finance Preparations Committee was told Feb. 4 that most of the Department of Correction’s most recent supplemental requests are driven by population changes in county jails and out‑of‑state placements and by higher than expected medical utilization.
Noah Peterson, budget and policy analyst for the Legislative Services Office, presented the county/out‑of‑state placement and medical services divisions together because both are operating cost centers without dedicated full‑time positions. Peterson said that per‑diem population shifts drove supplemental requests and that the agency expects ongoing FY2026 funding needs to be higher than the FY2025 base if current population projections hold.
Key points from the presentation -…
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