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The U.S. Juvenile Justice Services Market: 61,000 Youth In Custody

In 2011, federal and state spending on juvenile justice services totaled $6.1 billion, with state and local spending accounting for 95% of the total. The American Correctional Association reports that the per diem costs–borne by states and localities—of placing one youth in a juvenile facility averaged $241 per day or $87,965 per year in 2008. The Census Bureau estimates that in 2011, using a one-day point in time count, 61,423 juveniles were in state custody – defined as detained, committed, or in diversion. This number represents a decline of 13% from 70,742 in 2010.

No public or private agency or foundation systematically tracks national or state spending on juvenile justice. The wide variance in how states structure and administer services to justice-involved youth and the likelihood of cross-agency involvement (for example, youth served in a state’s juvenile justice system are also often served by the child welfare system and may alternate between the two) complicate any calculation of spending on juvenile justice. While estimates can be made for the cost of youth incarceration, no data is collected on how much states and localities spend on community-based supervision and treatment. To describe the juvenile justice services market, we explore six key elements that make up the juvenile justice services delivery system:

Juvenile justice services market defined – all services delivered to youth involved with the criminal justice system in areas of criminal law that apply to persons not old enough to be held responsible for criminal acts
Market size and trend by payer – spending on juvenile justice services originates at the federal, state and local levels, with private philanthropic funding focused on advocacy and reform
State-specific market data – state funds cover over 90% of total state corrections expenditures dwarfing federal spending
Populations served – about 61,423 youth are in some form of residential placement on any given day in the U.S.
Agencies tracking data – this includes costs released by the American Correctional Association and by state-sponsored studies
Issues influencing the level, direction, and mix of payers – policymakers are facing increased pressure based on the cost of care and quality of care concerns

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