How Much Each State Spends on Prisons

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Make no mistake about it, the prison industry is just that — an industry. The criminal legal system relies on both federal and state prisons to hold incarcerated people and support public safety. Prisons and jails come with an immense financial burden, but they also can turn a profit as private prisons can almost incentivize the criminal justice system.

That aside, when you look at how much the U.S. spends on the prison system it can be eye-opening. In a recent GOBankingRates study, it was discovered that the country, as a whole, spends over $86.9 million on corrections. This comes out to be about 1.93% of the total budget. Whether you work for law enforcement or are awaiting trial, it’s good to know how much money is being put into the prison system of the state you live in.

Several factors contribute to the variation in prison spending across states.

Here are some key takeaways:

States with larger numbers of people in the prison populations, like California and Texas, which house millions of people, naturally incur higher total costs. However, the per-inmate cost can vary depending on the efficiency of the prison system, the types of facilities used, the holding capacity for the general population or solitary confinement and rehabilitation programs.
States with a higher cost of living, such as New York and California, face higher expenses for staff salaries, health care, mental health programs and facility maintenance.
States that prioritize rehabilitation and reentry programs tend to spend more per inmate but may benefit from lower rates of recidivism in the long run. Conversely, states with more punitive approaches may face lower short-term costs but higher long-term societal costs.
The aging prison population and the prevalence of chronic health issues among inmates significantly impact healthcare costs. States that provide comprehensive services such as medical, dental or mental illness incur higher expenses but may improve inmate health outcomes.
Older facilities require more maintenance and upgrades, increasing operational costs. States with newer or better-maintained facilities can manage lower costs.

Quick Take:

10 States That Spend the Most on Prisons

The following states spend the largest percentage of the state and local budget on prisons:

Virginia
Idaho
Delaware
New Mexico
Nevada
Arizona
California
Maryland
Alaska
Wisconsin

10 States That Spend the Least on Prisons

The following states spend the smallest amount of the state and local budget on prisons:

Hawaii
Iowa
Vermont
Illinois
Missouri
South Carolina
Massachusetts
Rhode Island
Minnesota
New Hampshire

Also see the overall cost of living in each state.

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What Each State Spends on Prisons: Ranked From Highest to Lowest Expenditures

The high cost of prison systems poses significant challenges for state budgets, often requiring trade-offs with other critical services. Some states are exploring alternatives to incarceration, such as diversion programs for non-violent offenders, increased use of parole and investment in mental health and addiction services. These measures aim to reduce the prison population and associated costs while improving public safety and inmate rehabilitation.

Here is how much each state spends on prisons and corrections based on the overall budget allotted for the state.

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