COMMONWEALTH OF KENTUCKY
STATE FISCAL NOTE STATEMENT
GENERAL ASSEMBLY LEGISLATIVE RESEARCH COMMISSION
2011 REGULAR SESSION
MEASURE
(X) 2011 BR No. 0045 (X) SB BillNo. 6GA
() Resolution No. () Amendment No.
SUBJECT/TITLE An ACT relating to unauthorized aliens.
SPONSOR _ Senator John Schickel
Fiscal Analysis: Impact No Impact X___ Indeterminable Impact
Level(s) of Impact: X__ State X__ Local Federal
Budget Unit(s) Department of Corrections, Department of Public Advocacy, Department of Education, Cabinet
Impact for Health and Family Services, Judicial Branch
Fund(s) Impact: X _ General Road Federal
Restricted Agency (Type) (Other)
FISCAL SUMMARY.
Future Annual
Fiscal Estimates 2010-2011 2011-2012 Rate of Change
Revenues (+/-) Indeterminable Indeterminable
Expenditures (+/-) Indeterminable Indeterminable
Net Effect Indeterminable Indeterminable
MEASURE'S PURPOSE: The purpose of this measure is to allow law enforcement officers to determine a
person’s immigration status if they have reasonable suspicion that the person may be an unauthorized alien. The
suspect can be arrested by the law enforcement officer if there is probable cause to believe the person is an
unauthorized alien. If it is determined that the person is an unauthorized alien, they will also be charged with the
state crime of trespassing.
PROVISION/MECHANICGS:
Section 1 creates a new section of KRS Chapter 432 to define terms.
Section 2 creates a new section of KRS Chapter 432 to prevent the adoption of policies, administrative regulations,
or laws that restrict the enforcement of federal immigration laws.
Section 3 creates a new section of KRS Chapter 432 to allow for determining the immigration status of a person on
reasonable suspicion, the arrest of an unlawful alien upon probable cause, and the transference of an arrested
unauthorized alien to a federal facility or into federal custody. This section also requires that an unauthorized alien
that has been convicted of a violation of state or local law be transferred to the custody of the United States
Immigration and Customs Enforcement of the United States Customs and Border Protection upon discharge from
imprisonment.
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Section 4 creates a new section of KRS Chapter 432 to specify that officials or agencies may not be prohibited from
sharing the immigration status of a person under specific instances.
Section 5 creates a new section of KRS 432 to indemnify a governmental law enforcement officer where the officer
has been brought into a legal action.
Section 6 creates a new section of KRS Chapter 432 to make it a Class D felony to intentionally smuggle persons for
profit or commercial purposes, a Class B felony if the smuggled person is under 18 or the offense involved a deadly
weapon, or a Class C felony if serious physical injury is used or threatened.
Section 7 creates a new section of KRS Chapter 432 to define trespassing by an unauthorized alien in the first degree
and set out the penalties for conviction.
Section 8 creates a new section of KRS Chapter 432 make it a Class A misdemeanor for a person to transport or
conceal unauthorized aliens, or encourage an unauthorized alien to come to this state; clarify procedure for seizing
means of transportation and forfeiture procedures for offenses relating to assisting an unauthorized alien; provide
defense for employer of unauthorized alien who has relied on identification documents or Federal E-Verify results
FISCAL EXPLANATION: If this bill is adopted by the General Assembly, numerous sectors of state and local
government in the Commonwealth will be impacted in a significant manner. The extent of the impact will depend
greatly on the level of enforcement. If the statute is vigorously enforced, impact will be substantial. Minimal
enforcement will result in minimal impact.
Areas where costs would likely increase are:
Local and state law enforcement officers will have a new responsibility that will require a substantial
amount of additional time and effort, including transporting unauthorized aliens to an appropriate federal
facility. To perform these tasks adequately, additional officers would be needed, or duties performed on
other law enforcement tasks would have to be curtailed.
Depending upon the level of enforcement, local jails would experience population increases, and additional
costs of approximately $33 per day for each additional person incarcerated should be expected.
State Courts, particularly District Courts and County Attorneys, would experience an increase in the
number of cases that would have to be considered. This would require additional court personnel, or
inmates would spend longer periods of time in jail waiting for court, and this would increase jail costs.
The Kentucky Department of Public Advocacy would experience an increase in caseloads since few
unauthorized aliens would have the resources to hire private attorneys, and additional personnel would be
needed for this task.
The Kentucky Department of Corrections would experience an increase in population since a certain
proportion of the unauthorized aliens detained would also be convicted of Class D and C felonies. It is
likely that this would increase the costs for Corrections.
Approximately 67% of unauthorized aliens are in the workforce, according to national estimates, and many
pay state and local income, payroll, and sales taxes. Consequently, a decline in tax revenues is likely.
Even if the jobs are filled by currently unemployed legal residents, it appears that some sales tax revenues
would be lost.
It is also possible that costs in some areas of government may decrease if the number of unauthorized aliens residing
in the state is reduced. These are:
The PEW Hispanic Center estimates that there are about 11.1 million unauthorized aliens in the United
States and about 10% of them are children. There are another 4 million children in the country that were
born in the U.S., but have at least one parent that is unauthorized. An unknown amount of these children
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have both parents that are unauthorized. Consequently, if fewer unauthorized aliens reside in Kentucky,
fewer children will be present to attend schools, and this could result in cost savings.
¢ The Cabinet for Health and Family Services provides a myriad of services for persons residing in the state,
and will spend about $2 billion in state General Fund for these services in fiscal year 2012. Although
unauthorized aliens are generally not eligible for these services, they are eligible for emergency Medicaid,
and it is probable that some, especially children, receive services from the local health departments. Others
may receive services by utilizing unauthorized documentation. Consequently, fewer unauthorized aliens
would probably reduce the number of persons requiring these services and expenditures could be decreased
accordingly.
Due to the complexity of the scope of impact of this bill, it is impossible to reach a definitive conclusion concerning
the costs and savings described above. However, it is possible to utilize national and state data to make assumptions
and develop an example of what costs and savings may be expected. Although actual costs are indeterminable, this
may provide some insight into the fiscal implications.
National Data
2010 Census of the United States — total population 308,746,000
PEW Hispanic Center estimates:
Number % US Pop. # Working % Working
Unauthorized Males 5,800,000 1.88% 4,930,000 85%
Unauthorized Females 4,200,000 1.36% 2,436,000 58%
Unauthorized Children 1,100,000 0.36%
Total Unauthorized 11,100,000 3.6% 7,366,000 67%
Children Born in US 4,000,000 1.3%
With at least 1 unauthorized
Parent
State Data
2010 Census of the United States - Commonwealth of Kentucky - population 4,339,000
PEW Hispanic Center estimates there are between 35,000 and 60,000 unauthorized aliens in Kentucky, with a single
best estimate of 50,000.
Assuming Kentucky’s unauthorized aliens are similar to those on a national level:
Number. % KY Pop. # Working % Working
Unauthorized Males 26,125 0.6% 22,207 85%
Unauthorized Females 18,920 0.44% 10,973 58%
Unauthorized Children 4,955 0.11%
Total Unauthorized 50,000 1.15% 33,500 67%
Children Born in US 18,018 0.42%
With at least 1 unauthorized
Parent
Assumptions
* 33% of males will be identified as unauthorized and convicted of trespassing, for a reduction of 8,621.
* 25% of females will be identified as unauthorized and convicted of trespassing for a reduction of 4,730.
* 25% of children will be identified and will accompany their parents for a reduction of 1,239.
.
50% of the children born in the U.S. have both parents that are unauthorized aliens, and 25% of those
accompany their parents for a reduction of 2,252. All children with one authorized parent will remain in
the U.S.
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¢ — The 13,351 adults identified and convicted will be in jail for an average of 60 days, with a cost of $33 per
day.
¢ — The 3,491 children that will accompany their parents spend 120 days in foster care at a cost of $80 per day.
© 12% of the males (1,034) identified and convicted will also be convicted of a Class D felony, and will be
imprisoned for one year.
© 8% of the females (378) identified and convicted will also be convicted of a Class D felony and will be
imprisoned for one year.
© 1% of males (87) identified and convicted will also be convicted of a Class C felony and will be imprisoned
for five years.
© 90% of unauthorized children and children born in the U.S. with at least one unauthorized parent are of
school age and attend public schools.
e Per capita Human Services expenditures will be the same for unauthorized aliens as for the general
Kentucky population.
* 25% of unauthorized aliens in the state will voluntarily move outside the state to avoid arrest and possible
deportation.
Cost Calculations
Jail Costs: 8,621males + 4,730 females x 60 days x $33 per day = $26,435,000.
Foster Care Costs: 1,239 unauthorized + 2,252 born in U.S. x 120 days x $80 per day = $33,513,600.
Prison Costs for Class D Convictions: 1,034 class D felons x 365 days x $40 per day = $15,096,400.
Prison Costs Class C Convictions: 87 class C felons x 1,825 days x $50 per day = $7,938,800.
Administrative Office of the Courts: (Caseload increase of about 14,000. Current caseload of almost 1,000,000,
which is an increase of 1.4%. FY 2012 budget for Court Operations and Administration is $230,000,000)
$230,000,000 x 1.4% = $3,220,000.
Department of Public Advocacy: (Current cost per case average $224. Caseload increase of approximately 12,000.)
12,000 x $224 = $2,688,000.
Total costs under this scenario = $88.9 million.
Note: this does not include costs to local law enforcement for identifying and arresting unauthorized aliens, or the
cost of transporting them to a federal facility. It also does not include the potential of lost tax revenue.
Savings Calculations (State General Fund Only)
Department of Education (for persons arrested and deported): 1,239 unauthorized children accompany parents +
2,252 children born in the U.S. accompany parents x 90% attending public schools x $4,000 state funding per
student = $12,567,600.
Department of Education (for persons leaving voluntarily): 1,239 unauthorized children + 4,504 children born in the
U.S. x 90% attending public schools x $4,000 state funding = $20,674,800. This does not include potential savings
in local educational spending.
Cabinet for Health and Family Services (for persons arrested and deported): General Fund expenditures of
$2,135,305,400 / 4,339,000 KY population = $492 spent per capita. 16,842 adult and children removed from the
state x $492 per capita = $8,296,300.
Cabinet for Health and Family Services (for persons leaving voluntarily): $492 spent per capita x 17,000 persons
leave the state = $8,364,000.
Total savings under this scenario = $49.9 million.
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Summary
This example, using the assumptions indicated above, concludes that potential costs could be almost $90 million
with savings of about $50 million, a difference of $40 million. However, it should be noted that the official
conclusion is that the fiscal impact of SB 6 is “indeterminable”, and the cost/savings calculations provided are for
illustrative purposes only.
DATA SOURCE(S) PEW Hispanic Center, Justice and Public Safety Cabinet, Cabinet for Health and Family
Services
NOTE NO. 20__ PREPARERS Mike Mullins & Jennifer Anglin |§=REVIEW DATE _ 1-13-2011
LRC 2011-BRO04SSB6GA
