/1 Federal Prison Industries is a revolving fund that operates on the sale of goods and services to other government agencies. The positions and funding amounts are not part of the Department of Justice appropriations request and therefore are not included in the total column. However, the congressional limitation on FPI administrative expenses (for FY 2006, this limitation is $3,322,000) is scored against the Department's discretionary budget authority. The full-time equivalent (FTE) workyears are considered reimbursable and are included in the total column. Of the $737,585,000 FY 2005 obligations, $1,102,000 was for administrative expenses.

/2 Commissary Fund is a revolving trust fund that operates on the sale of goods and services to inmates. The positions and funding amounts are not part of the Department of Justice appropriations request and therefore are not included in the total column. The full-time equivalent (FTE) workyears are considered reimbursable and are included in the total column.

Consistent with the Government Performance and Results Act, the 2007 budget proposes to streamline the Federal Bureau of Prisons (BOP) decision unit structure from 4 program activities to 3 to align the BOP budget more closely with the mission and strategic objectives contained in the DOJ Strategic Plan (FY 2003-2008). In addition, the budget has been realigned to reflect the BOP's outputs and full costs by major program activity, including the costs of management and administration, so that a more accurate picture of total activity costs is reflected in the budget. In this way, budget and performance are more closely linked, and provide a better basis on which to make budget decisions. Under the FY 2002 (BY 2004) and FY 2003 (BY 2005) PART processes, the BOP was rated "Moderately Effective", and the score should improve even further in future years as the BOP continues to work to include long term goals in the areas of crowding and recidivism rates and continues to improve performance.

'/1 The FY 2007 current services request includes four adjustments to base unique to BOP. The request includes $1,015,000 for increasing medical expenses incurred on behalf of federal inmates, $9,944,000 for contract bed cost adjustments mandated by the Services Contract Act, $14,280,000 for contract price increases associated with exercising of option years, and $13,453,000 for utilities cost adjustments due to rising energy prices for operation of 116 institutions, 24 hours/day, 365 days/year.

'/2 The Federal Prison System (FPS) receives reimbursements for the daily care and maintenance of State and local offenders, for utilities used by Federal Prison Industries, Inc., for staff housing, and for meals provided to FPS staff at institutions. The reimbursements received may be used to fund personnel costs. The BOP estimates that 136 FTE are associated with these reimbursements.

1. Activate Expansion Space
BOP requests 20 positions (12 correctional officers), 10 FTE and $1,267,000 to begin the activation process for an expansion at FCI Otisville, New York. Construction of this expansion will be completed in February 2007, and the beds will be available for immediate use. Adding bed space at FCI Otisville is crucial to the safe operations of this institution for staff, inmates and the community. FY 2007 current services resources for FCI Otisville is 308 positions(157 correctional officers), 308 FTE and $29,703,000. Total FY 2007 resources are 328 positions (169 correctional officers), 328 FTE and $30,970,000.

2. Contract Confinement
BOP requests $34,376,000 to provide funds for the management and operation of a contractor-owned, contractor operated correctional facility at Philipsburg, Pennsylvania. The Philipsburg contract grew from the National Capital Revitalization and Self-Government Improvement Act of 1997 requirement that BOP house all District of Columbia Department of Corrections sentenced felons. Earlier environmental and other legal challenges have been resolved, and the new facility will confine 1,495 low security male inmates. In addition, BOP requests 4 positions, 2 FTE and $4,708,000 to obtain 392 additional low security contract beds for 6 months in FY 2007. The addition of these beds will help to offset crowding in BOP low security facilities, which was 46 percent at the end of FY 2005. Using contract beds for the confinement of low security inmates provides a flexible approach to manage this population. FY 2007 current services for contract facilities is 340 positions, 340 FTE and $735,052,000. Total FY 2007 resources are 344 positions, 342 FTE and $756,414,000. The BOP houses over 15 percent of its population in contract facilities.

1. Population Adjustment
The budget proposes a $50,215,000 offset in accordance with revised prison population projections. The total number of inmates is increasing by approximately 7,500 per year, not the nearly 11,000 projected earlier for FY 2005.

2. Management and Operational Efficiencies
The budget proposes a $4,000,000 offset associated with management and operational efficiencies. BOP continues to make progress in its streamlining and other efficiency measures initiated to operate within available resources. BOP has already abolished nearly 700 management positions, closed several outmoded and inefficient prison camps, and begun the transfer of inmates with the most critical needs to consolidated BOP medical centers resulting in savings to the taxpayer.

/1 The FY 2007 current services request includes an adjustment to base that is unique to BOP. The request includes $49,378,000 to enable the BOP to undertake essential rehabilitation, renovation and replacement projects at existing institutions.

Under the FY 2005 (BY 2007) PART process, the prison construction and modernization and repair program was rated "Adequate." BOP has evaluated low and minimum security prison space for the housing of higher-security prisoners and continues to examine state, local, and private facilities for housing more low and minimum-security inmates.

The budget continues a moratorium on new prison construction.

Note: Federal Prison Industries (FPI) is a revolving fund that operates on the sale of goods and services to other government agencies. FPI operations are not funded by the Treasury. The permanent positions column reflects positions funded from program revenues for illustrative purposes only. These positions are not included in the Department's totals.

The budget seeks resources to activate an expansion of FCI Otisville, New York. This expansion does not require a new factory activation.