It works that way, because a death penalty case must go through automatic
appeals (which is why it takes 20-25 years to actually enforce the penalty).
The cost of the appeals cases through all of the courts is also added to the
costs of keeping a death penalty prisoner.

I'm just wondering how this works...

You don't have the death penalty, you have to pay for the person to be
in prison for 25+ years, this includes food, water, clothing, guards,
property for the prison (the space could be used for another prisoner),
other "amenities" to give them a value of life (which I've never
understood)
You get from them some menial labor, like license plates and cleaning up
trash...

Now, if you DO have the death penalty, you only have to pay for them
during the time upto their execution, and then the execution itself

So, how can 20+ years of keeping them in prison cost more than the
execution? Unless someone is REALLY ripping off the state, then you're
gonna save Millions, aren't you?
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