Co-authored by Michelle Lau, Acting Director, San Francisco Financial Justice Project in the Office of the Treasurer & Tax Collector
It has been well documented that fines and fees disproportionately burden low-income residents, particularly residents of color. NLC has done extensive work to help cities address the negative impacts of municipal fines and fees on low-income and residents of color through its Cities Addressing Fines and Fees Equitably (CAFFE) Initiative. With support from JPMorgan Chase and Co., the CAFFE Initiative works with municipalities to assess and reform fines and fee structures with a goal to reduce inequities and develop new collections models that connect residents in debt with services that improve their financial health.
NLC worked with 14 cities through two rounds of the Initiative. Cities in the current Initiative have tackled fines and fees ranging from pet reclamation fees to code enforcement violations to late property taxes.
Other cities around the country have also prioritized addressing the negative impact of municipal fines and fees, like San Francisco. San Francisco is the only city and county nationwide to launch a Financial Justice Project (FJP) to assess and reform how fees and fines impact low-income residents and communities of color. Housed within the Treasurer’s Office, FJP has adjusted or eliminated dozens of fines and fees, saving low-income people millions of dollars each year. Most recently, FJP has focused its attention on juvenile restitution and the many challenges with the current restitution system. Below is a story about why:
A teenager robbed an elderly person as he sold jewelry from a sidewalk table. The vendor lost $1,200 worth of jewelry and, as a result, could not afford to pay his rent. Receiving restitution would help prevent eviction and provide stability for his business. However, because the young person who caused the harm had no money to pay restitution, the crime survivor received no payment and was left to struggle emotionally and financially. The teenager also faced a lifelong debt that would harm his future financial stability. (San Francisco FJP AFTER Program Report)
This experience is unfortunately too common for both crime survivors and people ordered to pay restitution. The purpose of juvenile restitution is to compensate victims for any financial losses from a crime and to hold youth accountable for their actions. However, research conducted by the San Francisco FJP found that crime survivors and young people ordered to pay restitution are overwhelmingly low-income people of color, making this a racial and economic justice issue. The restitution system failed low-income community members for whom economic needs are most pressing:
- Crime survivors generally receive little, if any, restitution. One year after restitution was ordered, only 2% was paid. Over 90% was outstanding after 5 years.
- Unpaid restitution debt negatively impacts a young person’s credit score, making it more difficult for them to rent an apartment or buy a car.
- Families of young people are often left to pay restitution, pushing the entire family deeper into poverty and financial distress.
San Francisco FJP and its juvenile justice partners saw an urgent need to address the financial well-being of both crime survivors and young people ordered to pay restitution and piloted a new approach. In January 2022, San Francisco launched the AFTER Program (Aims to Foster Transformation & Ensure Restitution), one of the first efforts in the country to pilot an alternative to the traditional restitution process.
Through the AFTER Program, crime survivors are paid restitution from a fund established within the City, while also receiving information on other supportive services. For young people, AFTER provides programming from a community-based organization to hold young people accountable and help them make amends — through community service, referral to job opportunities or participating in restorative justice conferences.
AFTER Program in Action
Returning to the earlier story, the young person completed the AFTER Program by performing multiple weekends of community service and receiving counseling. The crime survivor quickly received a $1,200 check from the AFTER Program to cover his losses and was able to pay his rent, which he described as a huge relief. Additionally, counseling and community service a more stable path.
To date, over 100 crime survivors and young people have participated in the AFTER Program. Crime survivors received $1,966 on average for their losses. Young people made amends and were held accountable in restorative, non-financial ways.
The AFTER pilot demonstrates that alternatives to the traditional restitution system can:
- Compensate crime survivors for the financial costs of a crime;
- Hold the young person accountable without saddling them with a debt they cannot pay; and
- Promote community safety.
Addressing restitution can be challenging, but it is critical to criminal justice reform and advancing economic and racial justice. San Francisco’s FJP offers recommendations for other jurisdictions looking to implement reforms to address restitution:
- Center the needs of crime survivors and young people: The idea for AFTER arose from a listening session with crime survivors, who were frustrated with the restitution system. The San Francisco team saw that crime survivors’ needs overlapped with those of young people and their families.
- Collaborate: AFTER is successful because of the partnership of the District Attorney, the Public Defender, The Bar Association of San Francisco, Juvenile Probation and the Court.
- Start with the juvenile system: Young people don’t have the means to pay restitution. FJP is currently using the successes of the youth program to pilot a similar program in the adult system.
- Ensure ongoing flexibility: San Francisco’s justice partner working group meets monthly to discuss how the program is working, identify areas that may require changes and suggest improvements.
- Provide continuous training: The AFTER Program is an innovative approach. It took time to ensure that all parties were aware of the program and understood its eligibility and guidelines.
A handful of cities have begun addressing juvenile justice in similar ways to San Francisco’s AFTER Program, including in Washtenaw County, MI; Philadelphia, PA; and King County, WA. These pilot programs show that there is future momentum at the local level, which has informed broader, statewide reform to ultimately better serve residents who are crime survivors and who live in low-income communities.
Just last month in California, a bill addressing youth restitution was signed into law. AB 1186 will eliminate youth restitution fines, waive debt from restitution fines for youth and adults that are 10+ years old and make other changes to the youth restitution system in California.
For more information about San Francisco’s AFTER Program and its FJP, visit their website.
Contact NLC
For more information about NLC’s efforts to help cities address the negative impacts of fines and fees, send us an email!