About the Report of the Re-Entry Council

Policy Statement 12, Research Highlight 4

Substance abuse treatment is cost-effective.

Studies have also found treatment to be cost-effective in reducing the costs of crime. For every dollar spent on treatment for this population, somewhere between three and seven dollars in savings is gained in crime-related cost savings, increased earnings, and reduced health care expenditures. A study conducted in California, for example, reported that treating offenders for $209 million saved taxpayers more than $1.5 billion 18 months later, with the largest savings due to reductions in crime. [1]  The study estimated that for every $1 spent on treatment, approximately $7 could be gained in future savings.

  1. Dean R. Gerstein, Robert A. Johnson, and Henrick S. Harwood, Evaluating Drug Recovery Services: The California Drug and Alcohol Treatment Assessment (CALDATA), (Sacramento, CA: Department of Alcohol and Drug Programs, 1994). back
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