New KYFREE Report: Prioritizing Alternatives to Incarceration for Primary Caregivers Could Add $740 Million to Kentucky’s Economy

A new report report released by the Kentucky Forum for Rights, Economics and Education (KYFREE), Addressing the Economic and Societal Impacts of Incarcerating Primary Caregivers in Kentucky: The Case for Alternative Rehabilitation Programs, sheds light on the extensive consequences of incarcerating non-violent primary caregivers in the Bluegrass State. KYFREE’s research estimates that alternative rehabilitation programs could save Kentucky $74 million in direct incarcerations costs and, ultimately, add $740 million annually to the state’s economy.

Each year, thousands of Kentucky’s children are separated from their primary caregivers due to incarceration for non-violent offenses. Kentucky ranks 40th in child well-being, underscoring the urgent need for policy reforms that prioritize both accountability for non-violent convictions and supporting families.

“This report highlights the need to reevaluate our approach to sentencing non-violent offenders when they’re also parents children depend on,” said KYFREE Vice President Sarah Durand. “Incarceration imposes significant economic burdens on the state while also negatively impacting the emotional, social, and educational well-being of children. Alternative sentencing programs offer a more effective and fiscally responsible path forward.”

Key Findings:

  • The direct cost of incarcerating non-violent primary caregivers in Kentucky is estimated to be $74.5 million.

  • The accumulated societal and economic cost to the state’s economy of incarcerating primary caregivers is an estimated $740 million annually.

  • Children of incarcerated parents are more likely to engage in criminal behavior, have lower educational attainment, higher poverty rates, and more mental health challenges.

  • Alternative sentencing programs, such as probation, house arrest, and supervised treatment have been shown to reduce recidivism and support family cohesion.

The report advocates for prioritizing evidence-based sentencing alternatives for eligible non-violent primary caregivers, including:

  • Pretrial Diversion Programs: Allowing eligible individuals to avoid incarceration through rehabilitation-focused initiatives, counseling, or community service.

  • Drug Court Programs: Providing structured treatment and supervision to non-violent offenders struggling with substance abuse, significantly lowering recidivism rates.

  • Mental Health and Veterans Treatment Courts: Addressing the underlying mental health and trauma-related issues of justice-involved individuals to enhance rehabilitation outcomes.

The findings of this report are important for policymakers and criminal justice system stakeholders seeking a balanced approach that promotes public safety, reduces financial strain on state budgets, and ensures better outcomes for Kentucky’s children and families.

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KYFREE letter to the budget conference committee