Defunding the police through shared service agreements: The impact on cost savings, staffing, and public safety using a bias-corrected synthetic control analysis

Research Summary

New Jersey (NJ) is home to more than 460 municipal police departments, including close to 60 with fewer than 11 officers. In total, the state spends around $3 billion per year on policing, 20% of the typical municipal budget. In recent history, seven NJ municipalities have disbanded their local force and contracted services with a neighbor. Using the bias-corrected synthetic control method, results from this study reveal these locations saved on average $143 per person per year, close to $300,000 per municipality. There were fewer officers in the contracting force per capita postcontracting, but no effects on public safety. Contracting agencies also gained new services including a K-9 Unit and full-time detectives. However, the monies municipalities saved were largely used to cut taxes and fund capital improvements, not to fund reform efforts called for after the murder of George Floyd. Contracting thus was a way to maintain the status quo.

Policy Implications

Interlocal police shared service agreements offer one promising model to defund the police without public safety collateral consequences. More municipalities can be encouraged to share police services by changing civil service rules and amending NJ state law, which currently limits the ability to realize cost savings. Contracts should also be required to clearly delineate service delivery and set minimum standards of service delivery.