By Michael Johnson, Jr.

The use of criminal legal fines and fees to fill state and local budgetary gaps has deep roots in a history of anti-Black racism. That history is evident in Washington, DC where the regressive nature of these financial obligations and the high costs of incarceration criminalize, extract wealth, and create collateral consequences that disproportionately impact Black and low-income communities. This report details the harms of fines and fees in DC’s criminal legal system, particularly for those unable to pay, and the perverse incentives created by using fines and fees to fund core government services. The authors use interviews with four formerly incarcerated DC residents to highlight the need for systemic reforms and provide recommendations to mitigate these harms in DC.

Key Findings:

• In federal BOP facilities, people who do not make payments towards their fines lose privileges such as access to commissary spending, denial of higher pay opportunities for work assignments, and denial of drug treatment and community-based programs.

• D.C residents can be incarcerated for up to a year for unpaid court financial obligations.

• The DOC and BOP require anyone with outstanding financial obligations to pay their debt in full as a condition of release, and failure to do so can result in re-incarceration.

• Revenue from Mayor Bowser’s addition of 342 traffic cameras in 2023 is expected to double between fiscal years 2024 and 2025.

• Criminal fines range from $100 for minor offenses to $125,000 for offenses punishable by 30 years or more.

• Workers in local DOC facilities earn up to $.50 per hour; a 15-minute phone call is more than double the hourly earnings for someone incarcerated in local DOC facilities.

• DOC charges a 9 percent surcharge on all commissary goods — on average, generating over $2 million annually between 2018 and 2023. 

• The work release program in DC requires incarcerated workers to pay fees on their wages, effectively functioning as a 20 percent income tax.

Recommendations:

• Improve transparency by investing in data systems that can collect, coordinate, and report on criminal fines and fees.

• Eliminate incarceration and supervision-related fees.

• Provide economic support for those with criminal legal involvement and their families.

Washington, DC: The DC Fiscal Policy Institute, 2024. 33p.

By Wilmington City Council

Lower-income residents in Wilmington face financial hardship as the costs and fees from the city rise. In 2022, the Wilmington City Council created the Fines and Fees Task Force to review fees, fines, and administrative sanctions imposed by all departments and recommend reforms for fairness. The task force found that generating revenue from fees and fines is inefficient and that the city’s financial department expenses, which process tickets, have increased by nearly $7 million over the past 20 years. Additionally, water bill fees have risen significantly, with Wilmington residents covering costs for a neighboring county and the city increasingly using the Water/Sewer Fund to pay for general expenses. With 1 in 4 Wilmington households earning less than $25,000 annually, the city’s reliance on fines and fees disproportionately impacts those least able to pay. The task force recommends revising the city budget to better align revenue sources with the ability to pay.

Key Findings:

• Most cities, like Wilmington, generate less than 1 percent of their general revenue from fines; in 2022, Wilmington generated 4.4 percent.

• Wilmington’s revenue from fines and forfeitures rose from 2.8 percent in 2004 to 4.4 percent in 2022.

• From 2018 to 2022, Wilmington issued over 450,000 parking and red light tickets.

• From 2018 to 2022, Wilmington issued about $42 million in parking and red-light tickets; nearly 25 percent went uncollected, 50 percent was paid to Conduent for managing the red-light program, and 20 percent went to the parking division.

• Conduent receives a 30 percent commission on all revenue from booting.

• In 2022, the city’s Water/Sewer Fund spending on other departments increased by 43 percent, paying $7.5 million in city expenses. 

• Almost 30 percent of residential water/sewer customers are delinquent on their water bills.

Recommendations:

• Stop harmful collection practices such as ending the practice of towing and booting cars for delinquent payments and adding penalties to people who can’t pay because of limited income. 

• Revise vendor contracts to reduce harm and reduce costs.

• Adjust fees to cover only the costs of providing the service.

Wilmington DE: Wilmington City Council, 2024. 19p.

By  Aravind Boddupalli, Susan Nembhard, Michael Karpman, and Sarah Morriss

Fines and fees can impose heavy burdens on those who come into contact with the criminal legal system. Using nationally representative data from the Urban Institute’s 2023 Well-Being and Basic Needs Survey, we examined the prevalence of fines and fees among nonelderly adults’ households, including the types of violations resulting in fines and fees, the populations impacted, and the consequences of these costs. About one in six adults incurred fines and fees in 2023, largely from traffic or parking tickets. Court or incarceration-related fines and fees disproportionately affected people of color and those with low incomes. Compared with adults who only incurred costs from traffic or parking tickets, those with court or incarceration-related fines and fees faced higher amounts charged, greater financial strain to make payments, and a higher likelihood of adverse consequences for being unable to pay, such as driver’s license suspensions, additional fees, or time in jail. They also faced higher rates of food insecurity and other material hardships. Our findings contribute to the growing evidence base on the impacts of fines and fees on family well-being.\

Washington, DC: Tax Policy Center, 2024. 23p.