This report is submitted as directed by House Joint Resolution 148 of the 1992 General Assembly, which continued a study previously authorized by Senate Joint Resolution 203 of 1991.

The recommendations in this report are intended to maintain the commitment of the Commonwealth to encourage regional solutions to the problem of jail overcrowding. At the same time, the expectation of slower growth in state revenues requires that the General Assembly adjust the manner of approving and paying for projects.

The time has passed when the Commonwealth could approve any jail project and provide capital cost reimbursement without limit. In today's fiscal environment, no project should be approved which cannot pass muster as an efficiently and economically designed and operated facility. Equally important, localities and regions must develop community corrections plans to provide a range of alternative sanctions. No jail construction project should be approved which is not an integral part of such a plan.

In short, jail construction can no longer be planned in isolation of the broader needs of the criminal justice system to provide a range of alternative types of punishment. This report recommends that general funds to operate alternative sanctions should be approved by the Board of Corrections, in tandem with the request for construction assistance.

This report further recommends that the Commonwealth continue to provide 50 percent reimbursement for regional jail projects, but with certain restrictions, for three or more cities and/or counties (but not towns). At least three of the participating localities should already operate a jail. All other approved projects should receive 25 percent reimbursement. Minimum security projects are specifically included, and capital costs eligible for reimbursement are specified, in proposed legislation.

The Commonwealth should have the option of paying its share on either a lump sum basis, or over a period of time. Lump sum payments should include one half of the cost when the project is 50 percent complete and the other half when the project is finished. If the reimbursement is paid over time, the amount should consist of 50 percent of the capital costs, as approved by the Board of Corrections, as well as 50 percent of the financing costs, as approved by the Treasury Board. In this case, the Commonwealth would contribute to the cost of debt service based on the actual interest rate achieved on the bonds sold for the project.