Economics
Federal Drug Control Spending by Function Function FY 2008 Final FY 2009 Enacted FY 2010 Request Treatment 3,255.2 3,415.9 3,566.0 Percent 24.5% 23.0% 23.7% Prevention 1,750.4 1,791.4 1,601.6 Percent 13.2% 12.1% 10.6% Domestic Law Enforcement 3,544.1 3,653.9 3,737.2 Percent 26.7% 24.6% 24.8% Interdiction 2,901.4 3,836.2 4,004.1 Percent 21.9% 25.8% 26.6% International 1,824.6 2,147.5 2,160.2 Percent 13.7% 14.5% 14.3% Total $13,275.8 $14,844.7 $15,069.1 Source:Office of National Drug Control Policy, "National Drug Control Strategy: FY2010 Budget Summary," (Washington, DC: 2009), p. 13.
http://www.whitehousedrugpolicy.gov/publications/policy/10budget/fy10bud..."Prohibition has two effects: on one hand it raises supplier costs, disrupts market functioning and prevents open promotion of the product; on the other, it sacrifices the authorities’ ability to tax transactions and regulate operation of the market, product characteristics and promotional activity of suppliers. The cannabis prevalence rates presented in Figure 1 show clearly that prohibition has failed to prevent widespread use of the drug and leaves open the possibility that it might be easier to control the harmful use of cannabis by regulation of a legal market than to control illicit consumption under prohibition. The contrast between the general welcome for tobacco regulation (including bans on smoking in public places) and the deep suspicion of prohibition policy on cannabis is striking and suggests that a middle course of legalised but limited consumption may find a public consensus."
Source:"Pudney, Stephen, "Drugs Policy – What Should We Do About Cannabis?" Centre for Economic Policy Research (London, United Kingdom: April 2009), p. 23.
http://www.cepr.org/meets/wkcn/9/976/papers/pudney.pdf"In 2005, federal, state and local governments spent at least $467.7 billion on substance abuse and addiction."
"Federal and state* governments spent $3.3 trillion in 2005 to operate government and provide public services such as education, health care, income assistance, child welfare, mental health, law enforcement and justice services, transportation and highway safety. Hidden in this spending was a stunning $373.9 billion--11.2 percent--that was spent on tobacco, alcohol and other drug abuse and addiction. A conservative estimate of local government spending on substance abuse and addiction in 2005 is $93.8 billion.
"The vast majority of federal and state substance related spending--95.6 percent or $357.4 billion--went to carry the burden to government programs of our failure to prevent and treat the problem while only 1.9 percent was spent on preventing or treating addiction. Another 0.4 percent was spent on research and the remaining two percent was spent on alcohol and tobacco tax collection, regulation and operation of state liquor stores (1.4 percent) federal drug interdiction (0.7 percent). For every dollar the federal and state governments spent on prevention and treatment, they spent $59.83 shoveling up the consequences.
"A staggering 71.1 percent of total federal and state spending on the burden of addiction is in two areas: health and justice. Almost three fifths (58.0 percent) of federal and state spending on the burden of substance abuse and addiction (74.1 percent of the federal burden) is in the area of health care where untreated addiction causes or contributes to over 70 other diseases requiring hospitalization. The second largest area of substance-related federal and state burden spending is the justice system (13.1 percent)."
Source:National Center on Addiction and Substance Abuse at Columbia University, "Shoveling Up II: The Impact of Substance Abuse on State Budgets" (New York, NY: CASA, May 2009), p. 2.
http://www.casacolumbia.org/absolutenm/articlefiles/380-ShovelingUpII.pd..."The increase in justice expenditures over nearly 20 years reflects the expansion of the Nation's justice system. For example, in 1982 the justice system employed approximately 1.27 million persons; in 2003 it reached over 2.3 million.
"Police protection
"One indicator of police workload, the FBI's arrest estimates for State and local police agencies, grew from 12 million in 1982 to an estimated 13.6 million in 2003. The number of employees in police protection increased from approximately 724,000 to over 1.1 million."Judicial and legal
"The judicial and legal workload, including civil and criminal cases, prosecutor functions, and public defender services, also expanded during this period. Cases of all kinds (criminal, civil, domestic, juvenile, and traffic) filed in the nearly 16,000 general and limited jurisdiction State courts went from about 86 million to 100 million in the 16-year period, 1987-2003. The total of judicial and legal employees grew about 101% to over 494,000 persons in 2003."Corrections
"The total number of State and Federal inmates grew from 403,000 in 1982 to over 1.4 million in 2003. The number of local jail inmates more than tripled from approximately 207,000 in 1982 to over 691,000 in 2003. Adults on probation increased from over 1.4 million to about 4.1 million persons. Overall, corrections employment more than doubled from nearly 300,000 to over 748,000 during this same period."Source:Hughes, Kristen A., "Justice Expenditure and Employment in the United States, 2003" (Washington, DC: US Dept. of Justice, Bureau of Justice Statistics, April 2006), NCJ212260, p. 7.
http://bjs.ojp.usdoj.gov/content/pub/pdf/jeeus03.pdfA study by the RAND Corporation found, "the savings of treatment programs are larger than the control costs; we estimate that the costs of crime and lost productivity are reduced by $7.46 for every dollar spend on treatment."
Source:Rydell, C.P. & Everingham, S.S., Controlling Cocaine, Prepared for the Office of National Drug Control Policy and the United States Army (Santa Monica, CA: Drug Policy Research Center, RAND Corporation, 1994), p. xvi.
http://www.rand.org/pubs/monograph_reports/2006/RAND_MR331.pdfEconomics - Statistics - Global
According to the United Nations Office on Drugs and Crime, "[T]he value of the global illicit drug market for the year 2003 was estimated at US$13 bn [billion] at the production level, at $94 bn at the wholesale level (taking seizures into account), and at US$322bn based on retail prices and taking seizures and other losses into account. This indicates that despite seizures and losses, the value of the drugs increase substantially as they move from producer to consumer."
Source:United Nations Office on Drugs and Crime (UNODC), World Drug Report 2005 (Vienna, Austria: UNODC, June 2005), p. 127.
http://www.unodc.org/pdf/WDR_2005/volume_1_web.pdf"If compared to global licit exports (US$7,503 bn in 2003) or compared to global GDP (US$35,765 bn in 2003) the estimated size [of] the global illicit drug market may not appear to be particularly high (0.9% of global GDP at retail level or 1.3% of global exports measures at wholesale level).
"Nonetheless, the size of the global illicit drug market is substantial. The value, measured at retail prices, is higher than the GDP of 88% of the countries in the world (163 out of 184 for which the World Bank has GDP data) and equivalent to about three quarters of Sub-Saharan Africa's combined GDP (US$439 bn in 2003). The sale of drugs, measured at wholesale prices, was equivalent to 12% of global export of chemicals (US$794 bn), 14% of global agricultural exports (US$674 bn) and exceeded global exports of ores and other minerals (US$79 bn) in 2003. Such sales of drugs were also higher than the combined total licit agricultural exports from Latin America (US$75 bn) and the Middle East (US$10 bn) in 2003."
Source:United Nations Office on Drugs and Crime (UNODC), World Drug Report 2005 (Vienna, Austria: UNODC, June 2005), p. 127.
http://www.unodc.org/pdf/WDR_2005/volume_1_web.pdf"In the world over 15 million people use illicit opiates (opium, heroin and morphine) annually. The value of the global opiate market is estimated at US$ 65 billion."
Source:United Nations Office on Drugs and Crime, "Addiction, Crime and Insurgency: The transnational threat of Afghan opium" (Vienna, Austria: October 2009), p. 7.
http://www.unodc.org/documents/data-and-analysis/Afghanistan/Afghan_Opiu..."It is also worth noting that by 1999, the UNDCP had not attempted to follow up its efforts to estimate the size of the world illegal drug market. That year, the Financial Action Task Force (FATF) [an inter-governmental body focusing on anti-money laundering activities and legislation] decided to begin work to assess the size of the world illegal economy and found it convenient to start with an estimate of the illegal drug market, a task that was considered easier than estimating other illegal activities, given the large work on drugs already available. FATF hired Peter Reuter, a well-known economist who has done extensive work on illegal drug markets, and produced an estimate. This job had the full cooperation of the UNDCP, which opened its data bank to the researcher.
The resulting study is probably the most serious attempt to ascertain the size of the world illegal drug market and resulted in an estimated range between $45 and $280 billion."
Source:Francisco E. Thoumi, "Let’s All Guess the Size of the Illegal Drugs Industry!" Transnational Institute (Amsterdam, The Netherlands: December 2003), p. 7.
http://www.tni.org//archives/crime-docs/numbers.pdf"The UNODC (2005) estimates that the world retail market for cannabis was about €125 Billion4 circa 2003; more than the retail markets for cocaine and opiates combined. The US is believed to be the largest contributor to this estimate, but the exact size of that market is far from settled. Indeed, some of the estimates of the US market vary by a factor of 10.
"The UNODC’s macro estimates indicate that North America and Western/Central Europe account for 45% and 28% of the world cannabis market, respectively. The UNODC’s input-output model suggests that each past year user in North America consumed 165 grams of cannabis herb at almost €10 per gram. With approximately 25 million past-year users in the US during this time, the UNODC calculations imply that retail cannabis expenditures in the US exceeded €40 billion. This is more than four times the retail estimate generated by the White House’s Office of National Drug Control Policy for 2000."
Source:Beau Kilmer, Rosalie Liccardo Pacula, "Estimating the size of the global drug market: A demand-side approach," Prepared for the Euopean Commission (The RAND Corporation, 2009) p. 8.
http://www.rand.org/pubs/technical_reports/2009/RAND_TR711.pdf"Of the US$ 65 billion turnover of the global market for opiates, only 5-10 per cent (US$ 3-5 billion) are estimated to be laundered by informal banking systems. The rest is laundered through legal trade activities (including smuggling of legal goods into Afghanistan) and the banking system."
Source:United Nations Office on Drugs and Crime, "Addiction, Crime and Insurgency: The transnational threat of Afghan opium" (Vienna, Austria: October 2009), p. 7.
http://www.unodc.org/documents/data-and-analysis/Afghanistan/Afghan_Opiu...In 2007, a kilogram of heroin no. 3 typically sold for an average wholesale price of $2,520 in Pakistan; the average 2005 per-kilogram wholesale price of heroin no. 4 in that country equaled approximately $4,159. The 2007 wholesale price for a kilogram of heroin in Afghanistan ranged around $2,405. In Colombia, a kilogram of heroin no. 4 typically sold for $9,992 wholesale in 2006. In the United States in 2007, a kilogram of heroin no. 4 cost an average of $71,200 wholesale.
Source:United Nations Office on Drugs and Crime, World Drug Report 2009, Statistical Annex: Prices, (Vienna, Austria: UNODC, 2009), pp. 217-218.
http://www.unodc.org/documents/wdr/WDR_2009/WDR2009_eng_web.pdf"The value of illegal drug exports from the Caribbean during the past two decades has fallen into two very well differentiated periods. The first period, from 1981 to 1990, was an epoch of impressive depression in the total value of the Caribbean drugs exports -- from an income over US$20bn at its peak in 1983 to US$5bn in 1991. Since 1991, the value of Caribbean exports of illegal drugs has stabilised around US$5bn."
Source:"The Value Of Illegal Drug Exports Transiting The Caribbean - 1981-2000," United Nations Office on Drugs and Crime, Caribbean Regional Office, February 2004, p. 39.In 2004, a kilogram of cocaine base in Colombia typically sold for $810 and a kilogram of cocaine typically sold for $1,713. In Peru in 2004, a kilogram of cocaine base typically sold for $700 and a kilogram of cocaine typically sold for $1,000. In Mexico in 2004, a kilogram of cocaine typically sold for $7,880. In the United States in 2001, a kilogram of cocaine typically sold for $23,500.
Source:United Nations Office on Drugs and Crime, World Drug Report 2006 Volume 2: Statistics (Vienna, Austria: UNODC, 2006), pp. 369-370.
http://www.unodc.org/pdf/WDR_2006/wdr2006_volume2.pdf"When the Taliban were in power (in the late 1990s) they extracted US$ 75-100 million a year from taxing opium. In the 2005-2008 period the cumulative revenue from opiate farming and trade accruing to Taliban insurgents is estimated at US$ 350-650 million, or an annual average of US$ 90-160 million in Afghanistan alone. This estimate does not include insurgents’ potential revenues from other drug-related activities (labs, imports of precursors) in Afghanistan and from the US$1 billion opiate trade in Pakistan."
Source:United Nations Office on Drugs and Crime, "Addiction, Crime and Insurgency: The transnational threat of Afghan opium" (Vienna, Austria: October 2009), p. 7.
http://www.unodc.org/documents/data-and-analysis/Afghanistan/Afghan_Opiu..."In the 1990s, production shifted from South-East Asia (mainly Myanmar) to Afghanistan which at present provides over 90 per cent of global supply."
Source:United Nations Office on Drugs and Crime, "Addiction, Crime and Insurgency: The transnational threat of Afghan opium" (Vienna, Austria: October 2009), p. 7.
http://www.unodc.org/documents/data-and-analysis/Afghanistan/Afghan_Opiu..."The new [2008] estimate of drug-related public expenditure in Europe is EUR 34 billion (95% confidence interval, EUR 28–40 billion), which is equivalent to 0.3% of the combined gross domestic product of all EU Member States. This suggests that State expenditure on the drug problem costs the average EU citizen EUR 60 a year."
Source:Annual Report 2008: The State of the Drugs Problem in Europe," European Monitoring Centre for Drugs and Drug Addiction (Luxembourg: Office for Official Publications of the European Communities, 2008), p. 21.
http://www.emcdda.europa.eu/themes/drug-situation/policy"The main opiate consumer market is Europe (about 19 per cent of global consumption, with a market value of US$ 20 billion), the Russian Federation (15 per cent), the Islamic Republic of Iran (15 per cent), China (12 per cent), India (7 per cent), Pakistan (6 per cent), Africa (6 per cent) and the Americas (6 per cent)."
Source:United Nations Office on Drugs and Crime, "Addiction, Crime and Insurgency: The transnational threat of Afghan opium" (Vienna, Austria: October 2009), p. 7.
http://www.unodc.org/documents/data-and-analysis/Afghanistan/Afghan_Opiu...Economics - Statistics - United States
"In 2003 the United States spent a record $185 billion for police protection, corrections, and judicial and legal activities. Expenditures for operating the Nation's justice system increased from almost $36 billion in 1982 to over $185 billion in 2003, an increase of 418%"
Source:Hughes, Kristen A., "Justice Expenditure and Employment in the United States, 2003" (Washington, DC: US Dept. of Justice, Bureau of Justice Statistics, April 2006), NCJ212260, p. 2.
http://bjs.ojp.usdoj.gov/content/pub/pdf/jeeus03.pdf"The FY 2009 resources of $1.250 million will support NDCI’s [National Drug Court Institute] efforts to improve and expand drug courts through its research, training, and technical assistance programs. NDCI will conduct research and produce reports on successful methods of financing and sustaining drug courts. The program will also provide technical assistance to court systems wishing to adopt these methods. NDCI will use resources to continue to develop and encourage standard drug court data collection practices, which allow for comparisons across drug court systems."
Source:Office of National Drug Control Policy, "National Drug Control Strategy: FY2010 Budget Summary," (Washington, DC: 2009), p. 138.
http://www.whitehousedrugpolicy.gov/publications/policy/10budget/ondcp.p..."In summary, prices for powder cocaine, crack, and heroin declined sharply in the 1980s and have declined more gradually since then, with periodic interruptions by modest price spikes that have usually persisted for a year or less. For d-methamphetamine, the pattern is broadly similar, but the price spikes appear to be larger and longer-lasting, particularly for 1989–1991. Marijuana prices have followed a very different pattern, increasing from 1981 to 1991, then declining through 2000 and increasing over the past three years."
Source:Office of National Drug Control Policy, "The Price and Purity of Illicit Drugs: 1981 Through the Second Quarter of 2003" (Washington DC: Executive Office of the President, November 2004), Publication Number NCJ 207768, p. vii.
http://www.ncjrs.gov/ondcppubs/publications/pdf/price_purity.pdf"The most recent figures available from the Office of National Drug Control Policy (ONDCP) indicate that, in 1999, federal expenditures on control of illegal drugs surpassed $17 billion; combined expenditures by federal, state, and local governments exceeded $30 billion. What is more, the nation's so-called 'drug war' is a protracted one. The country has spent roughly this amount annually throughout the 1990s."
Source:National Research Council, National Academy of Sciences, "Informing America's Policy on Illegal Drugs: What We Don't Know Keeps Hurting Us" (Washington, DC: National Academy Press, 2001), p. 1.
http://www.nap.edu/openbook.php?record_id=10021&page=1"The justice system spends $433 million on treatment: $149 million for state prison inmates; $103 million for those on probation and parole; $133 million for juvenile offenders; $46 million to help localities treat offenders; $1 million on drug courts. Treatment provided by mental health institutions for co-morbid patients totals $241 million. The remaining $492 million is for the substance abuse portion of state employee assistance programs ($97 million), treatment programs for adults involved in child welfare services ($4.5 million) and capital spending for the construction of treatment facilities ($391 million). (Figure 4.B)"
Source:National Center on Addiction and Substance Abuse at Columbia University, Shoveling Up: The Impact of Substance Abuse on State Budgets (New York, NY: CASA, Jan. 2001), p. 24.
http://www.casacolumbia.org/absolutenm/articlefiles/379-Shoveling%20Up.p..."According to law enforcement reporting, some individuals and criminal groups divert CPDs through doctor-shopping and use insurance fraud to fund their schemes. In fact, Aetna, Inc. reports that nearly half of its 1,065 member fraud cases in 2006 (the latest year for which data are available) involved prescription benefits, and most were related to doctor-shopping, according to the Coalition Against Insurance Fraud (CAIF). CAIF further reports that diversion of CPDs collectively costs insurance companies up to $72.5 billion annually, nearly two-thirds of which is paid by public insurers. Individual insurance plans lose an estimated $9 million to $850 million annually, depending on each plan’s size; much of that cost is passed on to consumers through higher annual premiums."
Source:National Drug Intelligence Center, Drug Enforcement Administration, "National Prescription Drug Threat Assessment," (Washington DC, April 2009), p. 20.
http://www.justice.gov/ndic/pubs33/33775/33775p.pdf"...the estimated cost of CPD diversion and abuse to public and private medical insurers is $72.5 billion a year,3 much of which is passed to consumers through higher health insurance premiums. Additionally, the abuse of prescription opioids is burdening the budgets of substance abuse treatment providers, particularly as prescription opioid abuse might be fueling heroin abuse rates in some areas of the United States."
Source:National Drug Intelligence Center, Drug Enforcement Administration, "National Prescription Drug Threat Assessment," (Washington DC, April 2009), p. V.
http://www.justice.gov/ndic/pubs33/33775/33775p.pdf"The final component of state substance abuse spending is the $433 million states spent in 1998 to regulate the sale of alcohol and tobacco and to collect alcohol and tobacco taxes (Table 5.1) Tax rates vary significantly from state to state and revenues generally are not dedicated to prevent, treat or cope with the burden substance abuse and addiction places on many state programs. "In 1998, states collected $4.0 billion in alcohol and $7.4 billion in tobacco taxes for a total of $11.4 billion. For every dollar of such tax revenues, states spent $7.13 on substance abuse and addiction -- $6.83 to shoulder the burden on public programs, $0.26 for prevention and treatment, and $0.04 to collect alcohol and tobacco taxes and run licensing boards."
Source:National Center on Addiction and Substance Abuse at Columbia University, Shoveling Up: The Impact of Substance Abuse on State Budgets (New York, NY: CASA, Jan. 2001), p. 27.
http://www.casacolumbia.org/absolutenm/articlefiles/379-Shoveling%20Up.p...Economics - Statistics - State and Local
"• Overall, local police spending represented 45% of the Nation's total justice expenditure, and State corrections accounted for the second largest portion, 33%.
"• Police protection is primarily a local responsibility; accordingly, local governments spent 69% of the total police protection expenditure in the country in 2003.
"• Corrections is primarily a State responsibility; as such State governments accounted for 64% of the Nation's corrections expenditure.
"• Judicial and legal services in the United States were funded primarily by local (43%) and State (38%) governments."Source:Hughes, Kristen A., "Justice Expenditure and Employment in the United States, 2003" (Washington, DC: US Dept. of Justice, Bureau of Justice Statistics, April 2006), NCJ212260, p. 4.
http://bjs.ojp.usdoj.gov/content/pub/pdf/jeeus03.pdf"State spending for corrections totaled $52 billion in fiscal 2008, a 6.5 percent increase compared to the previous year. State spending on corrections in fiscal 2009 is estimated to total $53 billion, a 1.8 percent increase from fiscal 2008."
"In fiscal 2008, corrections spending represented 3.5 percent of total state spending and 7 percent of general fund spending. General fund dollars are used primarily to fund state corrections spending and account for $47.7 billion, or 91.8 percent, of all fiscal 2008 state corrections spending. State funds (general funds and other state funds combined, but excluding bonds) accounted for 96.6 percent of total state corrections spending in fiscal 2008. Bonds accounted for 1.8 percent and federal funds accounted for 1.6 percent. In fiscal 2009, state funds are estimated to remain by far the largest source of total state correction spending at 95.7 percent. However, the growth rate of state funds in fiscal 2009 is much smaller than the growth rate of federal funds, with state funds growing 0.9 percent and federal funds growing 18.5 percent. Part of this is attributable to the increased federal funds included in the American Recovery and Reinvestment Act of 2009 (ARRA)."
Source:National Association of State Budget Officers (NASBO), State Expenditure Report 2008, (Washington, DC: NASBO, Decemberl 2009), p. 54.
http://www.nasbo.org/LinkClick.aspx?fileticket=%2fZWfTvJG8j0%3d&tabid=10..."Of the $81.3 billion states spent on substance abuse in 1998, $77.9 billion were spent shoveling the wreckage of this enormous health and social problem. These clean-up costs equal 12.6 percent of the total $620 billion in state spending for 1998. (Table 3.1)
"Almost ninety-six (95.8) cents of every state dollar spent on substance abuse goes to carry its burden in state programs such as criminal justice, school aid, Medicaid, child welfare, developmental disabilities and mental illness because of our failure to prevent substance abuse and treat those who are abusers and addicts."Source:National Center on Addiction and Substance Abuse at Columbia University, Shoveling Up: The Impact of Substance Abuse on State Budgets (New York, NY: CASA, Jan. 2001), p. 13.
http://www.casacolumbia.org/absolutenm/articlefiles/379-Shoveling%20Up.p..."In 2003, 7.2% of total State and local expenditures was for justice activities – 3% for police protection, 2.6% for corrections, and 1.5% for judicial and legal services (figure 3).
"By comparison, 29% of State and local government spending went to education, 14% to public welfare, 7% to health and hospitals, and 4% to interest on debt."Source:Hughes, Kristen A., "Justice Expenditure and Employment in the United States, 2003" (Washington, DC: US Dept. of Justice, Bureau of Justice Statistics, April 2006), NCJ212260, p. 4.
http://bjs.ojp.usdoj.gov/content/pub/pdf/jeeus03.pdf"Only $513.3 million in state funds is spent nationwide on substance abuse prevention. This includes $223 million through the department of health, $210 million through the department of substance abuse and $80 million in prevention in elementary and secondary education. Most spending for prevention through the schools is federally funded and that amount is not included here."
Source:National Center on Addiction and Substance Abuse at Columbia University, Shoveling Up: The Impact of Substance Abuse on State Budgets (New York, NY: CASA, Jan. 2001), p. 22.
http://www.casacolumbia.org/absolutenm/articlefiles/379-Shoveling%20Up.p...In January 2001, the National Center on Addiction and Substance Abuse at Columbia University published an analysis of costs to states from tobacco, alcohol and other drug addiction. According to the report,
"CASA's analysis revealed a few cost categories where only a single category of substances is implicated. (Figure 2.B) For instance, CASA identified $1.1 billion in state spending linked to illicit drug use only: $574 million for public safety costs for drug enforcement programs; $114 million for drug courts; and $412 million linked to illegal drugs in state spending on Medicaid.
"CASA estimates that $7.4 billion in state spending is linked exclusively to tobacco through state Medicaid spending.
"The single drug linked to the largest percentage of state costs is alcohol. We were able to identify $9.2 billion in state spending linked to only to alcohol in addition to the costs associated with abuse of both alcohol and illegal drugs: $915 million on highway safety and local law enforcement associated with drunk driving; $837 million in state costs for the developmentally disabled as a result of fetal alcohol syndrome; and, $7.4 billion in state Medicaid costs."Source:National Center on Addiction and Substance Abuse at Columbia University, Shoveling Up: The Impact of Substance Abuse on State Budgets (New York, NY: CASA, Jan. 2001), p. 11.
http://www.casacolumbia.org/absolutenm/articlefiles/379-Shoveling%20Up.p..."State spending for substance abuse in the justice system amounts to over one-third (39.4 percent) of the $77.9 billion states spend on the burden of substance abuse to state programs 10 times the amount states spend on all substance abuse prevention, treatment and research."
Source:National Center on Addiction and Substance Abuse at Columbia University, Shoveling Up: The Impact of Substance Abuse on State Budgets (New York, NY: CASA, Jan. 2001), p. 15.
http://www.casacolumbia.org/absolutenm/articlefiles/379-Shoveling%20Up.p..."States spent $29.8 billion in 1998 for adult corrections including incarceration, probation and parole. Eighty-one percent of this amount ($24.1 billion) was spent on substance-involved offenders. Of the $24.1 billion, $21.4 billion went to run and build prisons to house substance-involved offenders, $1.1 billion for parole and $695 million for probation for substance-involved offenders. An additional $899 million was spent on state aid to localities for substance-involved offenders."
Source:National Center on Addiction and Substance Abuse at Columbia University, "Shoveling Up II: The Impact of Substance Abuse on State Budgets" (New York, NY: CASA, January 2001), p. 15.
http://www.casacolumbia.org/absolutenm/articlefiles/379-Shoveling%20Up.p..."States report spending $2.5 billion a year on treatment. States did not distinguish whether the treatment was for alcohol, illicit drug abuse or nicotine addiction. Of the $2.5 billion total, $695 million is spent through the departments of health and $633 million through the state substance abuse agencies. We believe that virtually all of these funds are spent on alcohol and illegal drug treatment."
Source:National Center on Addiction and Substance Abuse at Columbia University, Shoveling Up: The Impact of Substance Abuse on State Budgets (New York, NY: CASA, Jan. 2001), p. 24.
http://www.casacolumbia.org/absolutenm/articlefiles/380-ShovelingUpII.pd..."Of the $3 billion states spend on prevention, treatment and research, $920 million (30.7 percent) is spent by state health agencies; $843 million (27.9 percent) by state alcohol and drug abuse offices; $433 million (14.3 percent) by the justice system."
Source:National Center on Addiction and Substance Abuse at Columbia University, Shoveling Up: The Impact of Substance Abuse on State Budgets (New York, NY: CASA, Jan. 2001), p. 22.
http://www.casacolumbia.org/absolutenm/articlefiles/379-Shoveling%20Up.p...According to the American Corrections Association, the average daily cost per state prison inmate per day in the US is $67.55. State prisons held 253,300 inmates for drug offenses in 2005. That means states spent approximately $17,110,415 per day to imprison drug offenders, or $6,245,301,475 per year.
Source:American Correctional Association, 2006 Directory of Adult and Juvenile Correctional Departments, Institutions, Agencies and Probation and Parole Authorities, 67th Edition (Alexandria, VA: ACA, 2006), p. 16; Sabol, William J., PhD, and West, Heather C., Bureau of Justice Statistics, Prisoners in 2007 (Washington, DC: US Department of Justice, December 2008), NCJ224280, p. 21, Appendix Table 10."Substance abuse treatment is more cost-effective than prison or other punitive measures. The Washington State Institute for Public Policy (WSIPP) found that drug treatment conducted within the community is extremely beneficial in terms of cost, especially compared to prison. Every dollar spent on drug treatment in the community is estimated to return $18.52 in benefits to society."
Source:Justice Policy Institute, "Substance Abuse Treatment and Public Safety," (Washington, DC: January 2008), p. 2.
http://www.justicepolicy.org/images/upload/08_01_REP_DrugTx_AC-PS.pdfEconomics - Research and Studies
According to a study funded by the Robert Wood Johnson Foundation and published by the Southern Economic Journal in 2001, "Nonchronic drug use was not statistically related to either of the labor supply measures, indicating that light or casual drug use did not lead to negative effects on the labor supply."
Source:French, Michael T., M. Christopher Roebuck, and Pierre Kebreau Alexandre, "Illicit Drug Use, Employment, and Labor Force Participation," Southern Economic Journal (Southern Economic Association: Oklahoma State University, Stillwater, OK, 2001), 68(2), p. 366."In conclusion, this study found that chronic drug use was significantly related to employment status for men and women. On the other hand, male chronic drug users were less likely to participate in the labor force, but no significant relationship existed between chronic drug use and labor force participation for females. Perhaps the most important finding of this study, however, was the lack of any significant relationships between nonchronic drug use, employment, and labor force participation. An implication of this finding is that employers and policy makers should focus on problematic drug users in the same way that they focus on problematic alcohol users."
Source:French, Michael T., M. Christopher Roebuck, and Pierre Kebreau Alexandre, "Illicit Drug Use, Employment, and Labor Force Participation," Southern Economic Journal (Southern Economic Association: Oklahoma State University, Stillwater, OK, 2001), 68(2), p. 366.
http://www.jstor.org/pss/1061598"Although residents of disadvantaged neighborhoods, neighborhoods with high concentrations of minorities, and neighborhoods with high population densities reported much higher levels of visible drug sales, they reported only slightly higher levels of drug use, along with somewhat higher levels of drug dependency. This finding indicates that conflating drug sales with use, so that poor and minority areas are assumed to be the focus of the problem of drug use, is plainly wrong. The finding is based on the data collected across 41 sites, including city and suburban (but not rural) areas in all regions."
Source:Saxe, Leonard, PhD, Charles Kadushin, PhD, Andrew Beveridge, PhD, et al., "The Visibility of Illicit Drugs: Implications for Community-Based Drug Control Strategies," American Journal of Public Health (Washington, DC: American Public Health Association, Dec. 2001), Vol. 91, No. 12, p. 1991.
http://ajph.aphapublications.org/cgi/reprint/91/12/1987.pdf"The long-run elasticities provide a basis for estimating potential benefits from changing the current policy mix away from enforcement and interdiction and towards education and treatment. Applying the estimated coefficients, a 10 percent reduction in expenditures on enforcement (about 1 billion dollars by the late 1990s) would be associated with a long-run reduction of over 20% in both the number of deaths and the age-adjusted death rate. This would imply that close to 3,000 deaths a year might be avoided with a shift away from enforcement approaches to drug control. Adding the billion dollars to education and treatment would represent an 18% increase in 1998. The estimated elasticity of 1.59 implies a reduction of close to 5,000 drug-induced deaths per year as a result. Thus, the underlying estimates suggest that very substantial improvements in public health may be achieved by emphasizing education and treatment over enforcement and interdiction."
Source:Shepard, Edward & Paul R. Blackley, "US Drug Control Policies: Federal Spending on Law Enforcement Versus Treatment in Public Health Outcomes," Journal of Drug Issues, Vol. 34, No. 4, Fall 2004, pp. 781-782.A 1994 RAND Corporation study found that, "Domestic enforcement costs 4 times as much as treatment for a given amount of user reduction, 7 times as much for consumption reduction, and 15 as much for societal cost reduction."
Source:Rydell, C.P. & Everingham, S.S., Controlling Cocaine, Prepared for the Office of National Drug Control Policy and the United States Army (Santa Monica, CA: Drug Policy Research Center, RAND Corporation, 1994), p. xvi.
http://www.rand.org/pubs/monograph_reports/2006/RAND_MR331.pdf"Although serious drug use is slightly more prevalent in poor minority neighborhoods than elsewhere, the major problem for disadvantaged neighborhoods is drug distribution. These communities are victims not only of their own drug abuse but also of a criminal drug market that serves the entire society. The market establishes itself in disadvantaged communities in part because of the low social capital in these neighborhoods. The drug economy further erodes that social capital."
Source:Saxe, Leonard, PhD, Charles Kadushin, PhD, Andrew Beveridge, PhD, et al., "The Visibility of Illicit Drugs: Implications for Community-Based Drug Control Strategies," American Journal of Public Health (Washington, DC: American Public Health Association, Dec. 2001), Vol. 91, No. 12, p. 1992.
http://ajph.aphapublications.org/cgi/reprint/91/12/1987.pdfThe average "dealer" holds a low-wage job and sells part-time to obtain drugs for his or her own use. "Earnings for drug selling were positively correlated (though weakly) with legitimate earnings. Drug selling seemed to be a complement to, rather than a substitute for, legitimate employment."
Source:Reuter, P., MacCoun, R., & Murphy, P., Money from Crime: A Study of the Economics of Drug Dealing in Washington DC (Santa Monica, CA: The RAND Corporation, 1990), pp. 49-50.
http://www.rand.org/pubs/reports/2005/R3894.pdf"The economic benefits of new prisons may come from the flow of additional state and federal dollars. In the decennial census, prisoners are counted where they are incarcerated, and many federal and state funding streams are tied to census population counts. According to the U.S. General Accounting Office (2003), the federal government distributes over $140 billion in grant money to state and local governments through formula-based grants. Formula grant money is in part based on census data and covers programs such as Medicaid, Foster Care, Adoption Assistance, and Social Services Block Grant (U.S. General Accounting Office 2003). Within a state, funding for community health services, road construction and repair, public housing, local law enforcement, and public libraries are all driven by population counts from the census."
Source:Lawrence, Sarah and Jeremy Travis, "The New Landscape of Imprisonment: Mapping America's Prison Expansion" (Washington, DC: Urban Institute, April 2004), p. 3.
http://www.urban.org/UploadedPDF/410994_mapping_prisons.pdf"The few studies on the local economic impacts of prisons to date have not found significant positive impacts. For example, a study by the Sentencing Project challenges the notion that a new prison brings economic benefits to smaller communities. Using 25 years of data from New York State rural counties, the authors looked at employment rates and per capita income and found 'no significant difference or discernible pattern of economic trends' between counties that were home to a prison and counties that were not home to a prison (King, Mauer, and Huling 2003). According to a recent study by Iowa State University, many towns that made sizeable investments in prisons did not reap the economic gains that were predicted (Besser 2003). Another analysis in Texas found no impacts as measured by consumer spending in nearly three-fourths of the areas examined (Chuang 1998)."
Source:Lawrence, Sarah and Jeremy Travis, "The New Landscape of Imprisonment: Mapping America's Prison Expansion" (Washington, DC: Urban Institute, April 2004), p. 3.
http://www.urban.org/UploadedPDF/410994_mapping_prisons.pdf"Every dollar transferred to a 'prison community' is a dollar that is not given to the home community of a prisoner, which is often among the country's most disadvantaged urban areas. According to one account, Cook County Illinois will lose nearly $88 million in federal benefits over the next decade because residents were counted in the 2000 Census in their county of incarceration rather than their county of origin (Duggan 2000). Losing funds from the 'relocation' of prisoners is also an issue for New York City, as two-thirds of state prisoners are from the city, while 91 percent of prisoners are incarcerated in upstate counties (Wagner 2002a)."
Source:Lawrence, Sarah and Jeremy Travis, "The New Landscape of Imprisonment: Mapping America's Prison Expansion" (Washington, DC: Urban Institute, April 2004), p. 3.
http://www.urban.org/UploadedPDF/410994_mapping_prisons.pdfResearch assessing the impact of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) found that the termination of addiction disability payments has had a negative effect.
According to the study, "While the aim of SSI addiction disability termination was, for conservatives, to force individuals to take greater responsibility in their lives and to decrease dependence on governmentally funded programs, this goal appears nearly impossible to achieve given the lack of resources had by this under-skilled and poor population. Nor did the policy change necessarily decrease their risk of continued involvement in drugs and crime. We estimate that losing a stable housing situation has placed respondents at greater risk for continued drug and alcohol use, something not considered by extant etiological work on individual substance abuse. These consequences could mean a greater dependence of this population on state and federally funded programs."
Source:Anderson, Tammy L., Caitlin Shannon, Igor Schyb, and Paul Goldstein, "Welfare Reform and Housing: Assessing the Impact to Substance Abusers," Journal of Drug Issues (Tallahassee, FL: Florida State University, Winter 2002), Vol. 32, No. 1, p. 290.
http://www.udel.edu/soc/tammya/pdfs/Welfare%20Reform%20and%20Housing,%20..."First, PRWORA of 1996 has destabilized the housing situations of the respondents and has placed them at greater risk for various types of housing problems and homelessness. Second, these housing complications have exacerbated numerous social problems (drug and alcohol abuse, crime, and victimization). It is important to consider, however, that changes in the housing market, decreased housing subsidies, and individual characteristics and behaviors also played a role in these negative outcomes.
"More specifically, we found considerable housing dependency, at some level, for all respondents, albeit most often among those who currently had no SSI benefits. Problematic dependence on family, friends, and significant others (doubling up or sharing housing with other adults) was most common, followed by dependence on state-funded program. Independent living (e.g., having one's own place and paying one's own rent), which we would hope for most by middle-age, was an uncommon occurrence."
Source:Anderson, Tammy L., Caitlin Shannon, Igor Schyb, and Paul Goldstein, "Welfare Reform and Housing: Assessing the Impact to Substance Abusers," Journal of Drug Issues (Tallahassee, FL: Florida State University, Winter 2002), Vol. 32, No. 1, pp. 288-289.
http://www.udel.edu/soc/tammya/pdfs/Welfare%20Reform%20and%20Housing,%20..."A qualitative analysis, featuring in-depth interviews with 101, nonrandomly selected former recipients revealed that disability benefits promoted housing autonomy, successful cohabitation, and overall housing stability. The termination of benefits, at a time of diminishing social services (e.g., cash and housing assistance) and a housing market explosion, increased various types of homelessness for respondents and dependency on family and friends. Such negative living outcomes, in turn, further escalated the risk of drug and alcohol use, criminal participation, and victimization."
Source:Anderson, Tammy L., Caitlin Shannon, Igor Schyb, and Paul Goldstein, "Welfare Reform and Housing: Assessing the Impact to Substance Abusers," Journal of Drug Issues (Tallahassee, FL: Florida State University, Winter 2002), Vol. 32, No. 1, p. 265.
http://www.udel.edu/soc/tammya/pdfs/Welfare%20Reform%20and%20Housing,%20...In a report funded by the Wisconsin Policy Research Institute, researchers concluded that "drug sales in poor neighborhoods are part of a growing informal economy which has expanded and innovatively organized in response to the loss of good jobs." The report characterizes drug dealing as "fundamentally a lower class response [to the information economy] by men and women with little formal education and few formal skills," and the report notes "If the jobs won't be created by either the public or private sector, then poor people will have to create the jobs themselves."
Source:Hagedorn, John M., Ph.D., The Business of Drug Dealing in Milwaukee (Milwaukee, WI: Wisconsin Policy Research Institute, 1998), p. 3.
http://www.csdp.org/research/drugdeal.pdfThe 2008, 2009, and 2010 budgets for the National Youth Anti-Drug Media Campaign were respectively $60 million (Final), $70 million (Enacted), and $70 million (Requested). For all years since inception, Congressional appropriations for campaign total more than $1.7 billion.
Source:Office of National Drug Control Policy, "National Drug Control Strategy: FY2010 Budget Summary," (Washington, DC: 2009), p. 137.
http://www.whitehousedrugpolicy.gov/publications/policy/10budget/ondcp.p...
and
General Accountability Office. "ONDCP Media Campaign - National Evaluation Did Not Find That the Youth Anti-Drug Media Campaign Was Effective in Reducing Youth Drug Use," (Washington, DC: report to the Chairman and Ranking Member, Subcommittee on Transportation, Treasury, the Judiciary, Housing and Urban Development, and Related Agencies, Committee on Appropriations, U.S. Senate, August 2006), GAO-06-818, p. 10.
http://www.gao.gov/new.items/d06818.pdf"As part of the Treasury and General Government Appropriation Act of 1998,(7) the Drug Free Media Campaign Act of 1998 required, among other things, the Office of National Drug Control Policy to conduct a national media campaign for the purpose of reducing and preventing drug abuse among young people in the United States.(8)"
"From fiscal year 1998 through fiscal year 2004, Congress appropriated $1.225 billion to support the campaign (table 1)"
"For fiscal year 2007, the President’s budget requested $120 million for campaign activities. The 2007 request represents an increase of $21 million above the fiscal year 2006 budget authority."
Source:General Accountability Office. "ONDCP Media Campaign - National Evaluation Did Not Find That the Youth Anti-Drug Media Campaign Was Effective in Reducing Youth Drug Use," (Washington, DC: report to the Chairman and Ranking Member, Subcommittee on Transportation, Treasury, the Judiciary, Housing and Urban Development, and Related Agencies, Committee on Appropriations, U.S. Senate, August 2006), GAO-06-818, p. 8, p. 9., and p 10.
http://www.gao.gov/new.items/d06818.pdf"The [Youth Anti-Drug Media] Campaign’s Media Match program has generated more than $1.22 billion in incremental media value for the Media Campaign since its inception. During FY 2008, the advertising contractor was able to negotiate more than the one-for-one match requirement. Interactive and Radio media placements generated the greatest additional impact for the Campaign by providing more than 10% above the match requirement."
Source:Office of National Drug Control Policy, "National Drug Control Strategy: FY2010 Budget Summary," (Washington, DC: 2009), p. 141.
http://www.whitehousedrugpolicy.gov/publications/policy/10budget/ondcp.p...
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