State governments are the primary source of funding for correctional institutions in the United States, accounting for over 80% of total spending.

The Bureau of Justice Assistance (BJA) is the federal agency responsible for providing funding to state and local correctional agencies through various grant programs.

Personnel costs, including salaries and benefits for correctional officers and other staff, typically account for the largest portion of correctional budgets.

The cost of incarceration is generally higher in prisons than in jails, due to the higher level of security and the longer sentences served by inmates in prisons.

Budgeting for correctional institutions involves a number of challenges, including predicting future inmate populations, balancing security needs with cost constraints, and addressing the needs of special populations such as female inmates and inmates with mental illness.

Expanding the use of private prisons is not a common strategy for reducing correctional costs, as private prisons are generally more expensive to operate than public prisons.

The COVID-19 pandemic has had a mixed impact on correctional budgets, with some jurisdictions experiencing increased costs due to enhanced health and safety measures, while others have seen decreased costs due to reduced inmate populations.

Underfunding correctional institutions can lead to a number of negative consequences, including increased recidivism rates, overcrowding and unsanitary conditions, and inadequate healthcare and mental health services.

Best practices for budgeting for correctional institutions include using data-driven approaches to predict future inmate populations, prioritizing evidence-based programs and interventions, and engaging in long-term planning and budgeting.

Emerging trends in correctional budgeting include an increased focus on community-based alternatives to incarceration, a greater emphasis on mental health and substance abuse treatment, and the use of technology to improve efficiency and reduce costs.