
There are stark differences between what each state spends per student and per prisoner. In 2023, per-pupil spending ranged from $7,628 in Utah to $25,139 in New York. In 2024, per-prisoner spending was as low as $23,000 in Arkansas and as high as $307,468 in Massachusetts. While the cost of education varies between states, with some prioritising investment in their students, the cost of incarceration is influenced by factors such as officer salaries and wages in a particular state. Southern states, which have some of the highest incarceration rates, spend the least per inmate.
| Characteristics | Values |
|---|---|
| States spending more on prisoners than students | Almost every state |
| States with the biggest gap between per-inmate and per-student spending | Michigan, Delaware, Washington, Iowa, New Mexico |
| States with the lowest per-student spending | California |
| States with the highest per-prisoner spending | California, New York |
| States with the highest incarceration rates | Southern states |
| Federal funding for prisoners' college degrees | Federal Pell Grant program |
| Personnel costs as a percentage of total state prison spending | 68% |
| States where healthcare spending exceeded 20% of prison spending | Alabama, Delaware, Georgia, Idaho, Missouri, South Dakota |
| Average cost per inmate | Driven by the number of corrections officers per incarcerated person and their average salaries |
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What You'll Learn
- California ranks 41st in per student spending but is the highest spender per prisoner
- Southern states spend the least per inmate but have the highest incarceration rates
- Prisoner education is funded by the federal Pell Grant program, which offers need-based grants
- Personnel costs make up most state prison expenditures, including salaries, overtime, and benefits
- The US has nearly a quarter of the world's prisoners but only 4.4% of the global population

California ranks 41st in per student spending but is the highest spender per prisoner
California ranks 41st in per-student spending but has the highest per-prisoner spending in the United States. In 2018, Democratic gubernatorial candidate Delaine Eastin pointed out this discrepancy, arguing that California should focus more on investing in students than in its prisons. According to Eastin, California spends too much on its prisons and not enough on its K-12 students, ranking 41st in the nation in per-pupil spending.
To support her claim, Eastin cited a January 2017 report by the California Budget and Policy Center. The report found that California spent $10,291 per K-12 student during the 2015-16 fiscal year, which was about $1,900 less than the national average of $12,252 per student. Notably, California's per-student spending had increased by $2,000 from the 2012-13 fiscal year, when the state ranked 50th in the nation.
In contrast, California has the highest per-prisoner spending in the country. The state's high wages contribute to this, as correctional officer salaries tend to track overall wages. California pays its correctional officers double the salaries of officers in lower-wage states. Additionally, California has a higher officer-to-inmate staffing ratio, further increasing personnel costs, which make up a significant portion of prison expenditures.
While California's governor, Jerry Brown, proposed spending 9% of the general fund budget on the prison system, amounting to about $12 billion, the state's per-student spending has also increased in recent years. However, the state still ranks low in per-pupil spending, and the Supreme Court has ordered that California cannot automatically close prisons even as its inmate population decreases.
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Southern states spend the least per inmate but have the highest incarceration rates
In 2022, the United States had the fifth-highest incarceration rate in the world, with 541 people per 100,000 incarcerated. While there has been a general decline in the prison population since its peak in 2008, the US still had over 1.2 million people in federal or state prisons in 2022. Eight of the ten states with the highest incarceration rates in 2022 were located in the southern or southwestern US, including Mississippi (859 per 100,000), Louisiana (775 per 100,000), and Arkansas (743 per 100,000). These rates were up to five times higher than those in some New England states, such as Massachusetts (116 per 100,000), Maine (130 per 100,000), and Rhode Island (152 per 100,000).
Southern states not only have the highest incarceration rates but also spend the least per inmate. For example, while Louisiana has an incarceration rate of 820 people per 100,000 and spends around $16,000 per person in prison, Colorado has a lower incarceration rate of 331 per 100,000 but spends more, around $39,000 per incarcerated person. The high incarceration rates and low spending per inmate in Southern states result in a significant variation in spending across states, with per-prisoner spending ranging from $23,000 in Arkansas to $307,468 in Massachusetts.
The low spending per inmate in Southern states can be attributed to various factors, including lower salaries for correctional officers and a lower ratio of officers to inmates. Additionally, states with higher incarceration rates may have different contracting practices for healthcare services, which can impact spending. For instance, states that predominantly use contracted healthcare services will have higher spending on outside healthcare payments, while states with healthcare services provided mainly by state employees will spend less on outside services.
The high incarceration rates in Southern states have been influenced by longer prison sentences and an increased likelihood of imprisonment. Disproportionate levels of imprisonment have been observed, particularly among Black Americans, normalizing incarceration within specific communities and contributing to distrust in the legal system. Addressing these disparities and promoting rehabilitation and education initiatives is essential for reducing incarceration rates and improving outcomes for formerly incarcerated individuals.
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Prisoner education is funded by the federal Pell Grant program, which offers need-based grants
The expansion of the Pell Grant program to incarcerated students is a significant policy shift that began in July 2023. This change has made thousands of prisoners across the US eligible for federal financial aid to support their enrollment in approved prison education programs (PEPs). The Department of Education estimates that 760,000 incarcerated individuals will become newly eligible for Pell Grants, allowing them to pursue higher education while serving their sentences.
The inclusion of incarcerated individuals in the Pell Grant program is expected to have positive outcomes for both prisoners and society. By providing educational opportunities, prisoners can gain valuable skills and knowledge that can enhance their employment prospects upon release. This can lead to higher earnings, improved rehabilitation, and lower recidivism rates.
However, it is important to address potential inequalities within prison education. Efforts must be made to ensure equitable access to high-quality instructional programs for all incarcerated students, regardless of race, class, ability, or gender. The distribution of federal student aid must be carefully monitored to prevent exacerbating existing inequalities and to provide equal opportunities for all prisoners seeking to continue their education.
Prisoner education programs have faced administrative barriers, including record requests for admissions and financial aid processes. These challenges must be addressed to facilitate the participation of incarcerated individuals in higher education. Overall, the funding of prisoner education through the Pell Grant program offers a transformative opportunity for incarcerated individuals to pursue personal growth and improve their chances of successful reintegration into society.
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Personnel costs make up most state prison expenditures, including salaries, overtime, and benefits
Prisons are institutions that require a lot of money to maintain. They must provide everything deemed necessary for those who are confined there, some for very long periods. Prisons must provide adequate security, program and administrative staff, food, infrastructure maintenance, electricity, and operational costs. They must also provide higher levels of specialized healthcare for a population with significant physical and mental health concerns.
In 2015, the total state expenditure on prisons was just under $43 billion. Personnel costs, including salaries, overtime, and benefits, made up the majority of state prison expenditures, accounting for about two-thirds (68%) of total spending in 2015. States with higher average salaries for corrections employees, such as California and Connecticut, and states with more employees relative to the prison population, such as Massachusetts, New York, and Rhode Island, tend to have higher per-inmate costs. The average annual salary for a correctional officer was $58,921 in 2023, and pay tends to correlate with overall wages in a particular state. For example, officers in California, New Jersey, and Massachusetts are paid double the salaries of officers in Mississippi, Missouri, and Kentucky.
The average cost per inmate is driven by the number of corrections officers per incarcerated person and their average salaries. In 2015, six states (Alabama, Delaware, Georgia, Idaho, Missouri, and South Dakota) spent over 20% of their prison spending on healthcare. While this depends on whether healthcare services are contracted out or provided by state employees, personnel costs in these states still made up the bulk of individual budgets.
While it is difficult to make a direct comparison between state spending per prisoner and per student, it is clear that state spending on corrections and prisons is significant. In Texas, spending on prisons and jails has grown five times faster than spending on elementary and secondary education over the past three decades. In Massachusetts, the state budget allocation per inmate rose 34% between 2011 and 2016, while education aid per student increased by only 11%.
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The US has nearly a quarter of the world's prisoners but only 4.4% of the global population
The United States has nearly a quarter of the world's prisoners but only around 4.4% of the global population. This disparity is even more striking when considering that the US prison population includes a disproportionate number of racial minorities, particularly African Americans, who are incarcerated at more than five times the rate of whites. In 2012, the US spent nearly $81 billion on corrections, with spending on prisons and jails increasing at triple the rate of spending on Pre‐K‐12 public education over the last thirty years. This has resulted in a massive increase in new inmates and historically high incarceration rates, despite a general decline in crime.
In recent years, there has been a push to address these stark racial disparities and mass incarceration through prison education programs and sentencing reforms. Thousands of prisoners throughout the US are now getting college degrees behind bars, mostly funded by the federal Pell Grant program. This expansion of prison education is seen as a way to reduce recidivism and give prisoners a chance to rebuild their lives. Additionally, states like New Jersey, Indiana, and Utah have adopted legislation to scale back drug zone sentencing enhancements, which have disproportionately impacted racial minorities in urban areas.
While some progress is being made, the US still has a long way to go in reforming its criminal justice system. The high incarceration rates, particularly among racial minorities, have led to increased interactions with the criminal justice system and high rates of recidivism. The cost of corrections is also significant, with state governments spending a combined $64 billion to incarcerate more than 1 million people at the end of 2021. These costs are driven mainly by personnel expenses, including salaries, overtime, and benefits for corrections employees.
To reduce incarceration rates and address racial disparities, there needs to be a continued focus on sentencing reform, investment in education and rehabilitation programs, and the removal of legal restrictions that block access to jobs, housing, and educational opportunities for those with criminal records. By addressing these issues, the US can begin to reduce its disproportionately large share of the world's prisoners and improve the outcomes for those impacted by the criminal justice system.
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Frequently asked questions
The amount that states pay per student varies. For example, Iowa’s per-pupil spending is just below the national median at $11,150.21, while California, which ranks 41st in the nation in per pupil K-12 spending, has a per-pupil spending of $280 billion a year.
The amount that states pay per prisoner also varies. For example, Louisiana, which has an incarceration rate of 820 people in prison for every 100,000 state residents, spends around $16,000 for each person in prison. In contrast, Colorado has a lower incarceration rate of 331 people in prison for every 100,000 state residents but spends around $39,000 per person incarcerated. California, which has the highest per-prisoner costs, is expected to spend more than $80,000 per prisoner in the next fiscal year.
One reason for the disparity in spending is the personnel necessary to run each institution. Each teacher in the U.S. typically handles 20.8 students, whereas one guard oversees only 5.3 prisoners. This number can be as low as two prisoners per guard in places like New York City or California. Additionally, personnel costs—including salaries, overtime, and benefits—comprise the majority of state prison expenditures, making up more than two-thirds (68%) of total spending.
The state's prisoner budget includes personnel costs such as salaries, overtime, and benefits for uniform and non-uniform corrections employees. It also includes payments for prison health care, which can make up a significant portion of the budget, especially in states that predominantly use contracted health care services. Other costs include facility maintenance, programming costs for incarcerated people, debt service, and legal judgments.
The economics of incarceration have a significant impact on society. The system of mass incarceration costs the government and families of justice-involved people billions of dollars every year. Additionally, people in prisons are often paid very low wages, which can lead to coercive labor and high costs for basic goods. However, providing education and rehabilitation opportunities for prisoners can lead to positive outcomes, such as reduced recidivism rates and increased tax revenue.

































