Thank you, Mr. Chair, and thank you to the committee for allowing me to appear at a later date than you originally requested. My schedule was quite full, but I'm glad to be here today.
Good morning, and thank you, Mr. Chair and committee members, for the opportunity to discuss how the freeze on departmental budget envelopes and government operations will affect the daily operations of the Correctional Service of Canada.
I'd also like to address the impact on CSC operations that can be expected from the legislation connected with the government's criminal justice initiatives, in particular the Truth in Sentencing Act and the Tackling Violent Crime Act.
The freeze on the Correctional Service of Canada's departmental budget envelope and operations applies to operating budgets only, as you know. Operating budgets will be frozen at the current levels, and the freeze will also apply to 2011-12 fiscal year and 2012-13 fiscal year reference levels.
There is no freeze on wages. CSC employees will receive the salary increase for this year resulting from collective agreements and set at 1.5% by the Expenditure Restraint Act. As with other departments, the Correctional Service of Canada will absorb this increase as well as any increases to salaries and wages in 2011-12 and 2012-13 that result from future collective agreements.
Work is well under way at CSC to improve efficiencies within our operations to pay for these increases. For instance, we have introduced new staff deployment standards at our penitentiaries for our correctional officers. We are also now using computerized rostering systems to ensure that we are efficiently staffing our facilities on a 24/7 basis. This is improving our effectiveness by ensuring that our people know when and where they will be working their shift rotations well in advance. It will also help to reduce our overtime expenditures by more efficiently replacing correctional officers who are absent on training or leave.
We've also improved our integrated human resources and business planning methods to more accurately forecast our staffing and recruitment needs going forward. Because our penitentiaries must be properly staffed 24 hours a day, seven days a week, 365 days a year, we make every effort to maintain our staff complement at appropriate levels. This is an important part of minimizing the overtime that would otherwise be incurred to fill vacant posts in our facilities.
Personnel costs represent our largest expenditure. For fiscal year 2010-11, Correctional Service of Canada's main estimates are approximately $2.5 billion, and personnel expenditures, including salaries and benefits, represent approximately 61% of the budget, or $1.5 billion. The rest is dedicated to operating costs, which represent approximately 25%, $625 million, and capital investments at approximately 14%, $329 million.
It's important to note that 90% of CSC's budget is non-discretionary and quasi-statutory. CSC has fixed costs that it must fund on a continuous basis. These include the provision of food to offenders, the utility costs related to the maintenance of our accommodations, clothing for offenders, and uniforms for our staff. The remaining 10% provides us with some opportunity and flexibility to seek out ways for us to meet the freeze on operating costs. I am confident that we will continue to find improvements in our program delivery that will help us to absorb these costs.
The government's criminal justice initiatives will present some opportunities for CSC as well as some challenges. The primary impact of the legislation will be a significant and sustained increase to the federal offender population over time. This will be particularly evident in the short to mid term.
As the members will know, the Truth in Sentencing Act replaces the two for one credit for time in custody before sentencing to a maximum of one day of credit for each day served in provincial detention. Only under exceptional circumstances may a judge provide a 1.5-day credit. Consequently, many offenders who would have previously received a provincial sentence will now serve a federal sentence of two years or more, and those who would have received a federal sentence will now receive a longer federal sentence.
Normally we would have expected an incarcerated population of about 14,856 by the end of the 2014 fiscal year. This figure is a result of our projections for regular growth, which is set at about 1% for male offenders and about 2.8% for women offenders. However, we are expecting an additional 383 offenders by the end of the 2014 fiscal year as a result of Bill C-2, the Tackling Violent Crime Act. And with the implementation of Bill C-25, the Truth in Sentencing Act, our analysis is forecasting an increase of 3,445 more offenders, including 182 women, by 2013.
Mr. Chair, this is a considerable increase over such a short period of time. The additional 3,828 offenders resulting from Bill C-2 and Bill C-25, together with our normal projections, represents a total growth of 4,478 inmates in the 2014 fiscal year and an anticipated total penitentiary population of 18,684 offenders by March 31, 2014. This growth, Mr. Chair, well exceeds our existing capacity today.
We are moving quickly to identify the measures required to address these population increases, and we are taking a multi-faceted approach. Several measures are now being developed, including temporary accommodation measures such as double-bunking. We are also now in the process of tendering for the construction of new accommodation units, program space, and support services within existing Correctional Service Canada institutions.
Regarding the expanded use of shared accommodation, I should note that it will be aligned with greater offender accountability. We expect offenders to be out of their cells engaging in programs and making positive efforts to become law-abiding citizens who can contribute to safe communities for all Canadians when they are released. These temporary measures will be implemented in a way that will minimize any adverse impact on front-line service delivery at our institutions. I assure you that with the proper support, any steps we take around budget implications and capacity issues will not jeopardize public safety or the safety of staff or inmates.
With respect to the new units, we can expedite the design and construction process by using proven and refined designs. Furthermore, we are strategically planning expansions at institutions located where we expect the greatest increases. Beyond expanding our facilities, CSC will be improving our program delivery capacity to meet the needs of an increasingly complex and diverse offender population. This includes programming for offenders who require treatment for mental health disorders and addictions, or those who are trying to break from their affiliations with gangs, particularly among our aboriginal offender population.
I should note that we are expecting the largest increase in our prairie region, where we will need 726 more accommodation spaces. As this region is where a majority of our aboriginal offenders are housed, we are currently reviewing our aboriginal corrections strategy to improve our delivery of education and employment training. This will assist in the safe reintegration of our aboriginal offenders back to their home communities.
Of course, there is a cost to all of this. Our current estimates are approximately $2 billion over five years in order to provide sufficient resources to address the additional double-bunking that will occur and to get the new units up and running. This also includes funds to ensure that we continue to provide offenders under our supervision with access to programs.
The assessment of this legislation's impact on CSC will be a long and complex process. As we continually monitor this impact, we will continuously fine-tune our approach to accommodate population increases and adjust our service delivery. We will also seek to connect this short- and medium-term impact with future requirements associated with the aging and inadequate infrastructure at some of our older institutions.
A long-term accommodation plan that will provide a forecast to the year 2018 is expected to be presented for consideration by this spring. As we move forward, we will be consulting with our partners and the communities in which we are located across Canada to ensure that we proceed in a transparent and collaborative fashion.
Of course, with the short- and long-term accommodation measures I've mentioned above comes a necessary increase in our staff complement. As indicated in the most recent report on plans and priorities, CSC is planning to staff an additional 4,119 positions across Canada over the next three years. This increase will enhance our capacity to carry out our mandate, help in our work with offenders, and improve our public safety results. I am very sensitive to the possible effects of an offender population increase on the work and safety of my staff in our penitentiaries and parole offices, whether they are existing staff or new hires. But I'm also very aware of, and extremely confident in, the commitment and ability of my employees to deliver high-quality correctional services that produce good public safety results for Canadians. I am speaking about our correctional and parole officers, our vocational and program staff, our health care professionals, and our support staff and management teams across the country. These are dedicated people, and the additional staff who will be added over the coming years will significantly help those who are on the ground today working with offenders.
We have been modernizing the way we select and train our correctional officers and other staff, and we work together with our union partners to make sure we are hiring the best-suited people who are committed to making a difference in the lives of others and the safety of their communities.
While it's clear that the criminal justice legislation and the spending freeze will pose some challenges, I am confident that the Correctional Service of Canada will successfully adapt and continue to provide good public safety results for all Canadians.
Mr. Chair, in closing, I wish to thank you for this opportunity to speak to the committee, and I welcome any questions you may have today.