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Saving Tip #4: Weigh the Costs of Building New and Reusing What You Already Have
Tuesday, August 03, 2010

$169.4 million for a new facility is a scary number for operators just trying to survive budget and funding cuts. But when comparing that number to the potential operations savings over a period of time, that number becomes more feasible.

For instance, Pennsylvania, when faced with the option of building a new, larger facility or continuing operations at two existing facilities, realized where real savings would come from. Feasibility studies showed that over thirty years the single, larger facility could operate at $22 million less than the operations cost of two older facilities. The larger facility would also be able to house 367 more inmates.

An Oklahoma jail, when forced to either repair facility inadequacies or have the federal government step in to force funding for a new facility, compared the price of building new to the price of updates needed. Oklahoma was shown that the costs of remodeling and building new were practically identical when considering annual operating costs for the new facility.

In some cases, building new is simply not an option. To overcome this, analyze how space is used in comparison to space requirements. There are facilities that can optimize their space to house hundreds of more inmates without having to build new housing units.

For more cost-saving ideas, download our free eBook: So You Don't Have a Rich Uncle: 9 Fresh Tactics That Combat Funding Shortages.

OR read how corrections professionals are helping their facilities save money here>>>

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About This Blog

This blog is a collaborative effort of the Justice group at Performa Inc. It is a platform for dialogue and the exploration of issues impacting correctional facilities, detention centers, homeland security facilities and more. The group is led by David Robillard, President of the Performa Justice Team.