Governmental Affairs

County jail reimbursement: history and future increases

By Josh curtis Governmental Affairs Director and DYLAN LOFTON AAC Law Clerk

Counties in Arkansas continue to face heavy costs for providing services to state prisoners who are being held in county jails. Despite easing the burden placed on the state of Arkansas and state prison facilities, our counties struggle financially to shoulder these heavy costs. With a reimbursement rate for county jails below what is needed to cover these costs per prisoner per day, our counties continue to face the brunt of a challenging financial situation while assisting in state responsibilities. Raising the reimbursement rate for county jails should be a priority of the state of Arkansas if we are serious about supporting local government closest to the people of our state.

History of State Inmate Costs and County Jail Reimbursement

The origins of county jail reimbursement for housing state inmates began in 1981 with the passage of Act 737. This Act provided appropriation and funding for county jail reimbursement, while also setting an expected rate of reimbursement for counties. Act 737 provided appropriations and supplemental funding to cover the cost of counties housing state inmates. The total reimbursement allowed for the years of 1982 and 1983 was set at $100,000 per year, while the expected rate the state would pay to counties was estimated at $8 per day. This approach was flawed in that the level of reimbursement was based primarily on the amount appropriated, instead of actual costs incurred by our counties.

In 1985, the approach of the state of Arkansas changed for county jail reimbursement. Reimbursement rates began to be variable, depending on the costs submitted by each county. However, the cap on reimbursement was set at $18 per day regardless of if the costs to the county were greater than this maximum threshold. This change lasted until 1991, when the county jail reimbursement rate was increased to $25 per prisoner per day. In 2001, the reimbursement rate was again raised to $28 per prisoner per day. This change also reflected costs across four areas of caring for state prisoners: care, custody, treatment, and transportation. This rate remained constant for over a decade until Gov. Asa Hutchinson approved an increase in 2015 to $30 per prisoner per day. This was further increased to the current reimbursement rate of $32 per prisoner per day in 2020 upon approval by Gov. Hutchinson.

The County Jail Reimbursement Fund Today

Funding supporting counties in housing and caring for state prisoners comes from the County Jail Reimbursement Fund, which is described in A.C.A. § 19-5-1045. The fund is used by the Arkansas Division of Correction (DOC) for reimbursing counties that house prisoners sentenced to DOC. Additionally, the fund is used by the Arkansas Division of Community Corrections (DCC) for reimbursing counties that are housing different classifications of prisoners, including prisoners: (1) Sentenced to the DCC, (2) Placed on probation if the probation includes incarceration in the DCC, or (3) Confined in county jail under a prerelease program or sanction enacted for violation of a supervised condition. See A.C.A. § 19-5-1045.

The reimbursement process for the DOC and DCC is similar in many regards. Importantly, if the DOC cannot accept inmates due to insufficient bedspace, DOC reimburses counties from the County Jail Reimbursement Fund. The rates of reimbursement are determined by the “Chief Fiscal Officer of the State,” who consults with Arkansas Legislative Audit and the DOC. The rate of reimbursement must also be approved by the Governor. Reimbursement is given to counties until the applicable appropriated funding for county jail reimbursement runs out. See A.C.A. § 12-27-114. Similarly, if the DCC is unable to house inmates from county jails due to insufficient bed space or if DCC decided to confine an inmate in a county jail under a pre-release program or sanction for violating supervision conditions, they must reimburse the counties following the same process for the determination of rates as followed by DOC. See A.C.A. § 12-27-114.

How Are Our Counties Currently Faring? Despite gradual increases in the reimbursement since the 1980s, counties continue to assume a large financial obligation for housing and caring for state prisoners. We are thankful that Gov. Asa Hutchinson made this a priority and moved the ball down the field. The amount appropriated by the legislature for county jail reimbursement was recently set at $20,453,607 for the fiscal year ending June 30, 2022. This appropriation reflects approximately 1,800 state inmates per day in county jails. There is no guarantee that funding will increase if the average exceeds 1,800 inmates per day. According to the State Inmate Cost Study for Calendar Year 2020 compiled by the Association of Arkansas Counties and verified by Arkansas Legislative Audit (https://www.arcounties.org/site/assets/ files/5932/2020_inmate_cost_study.pdf) the cost of housing and caring for a state inmate comes in at an average of $63.36. Of all the counties included in the AAC’s State Inmate Cost

Study for Calendar Year 2020, every single county faced “Cost per Day Verified,” higher than the $32 per prisoner per day. This financial burden for housing and caring for state inmates hits all Arkansas counties regardless of population size, demographic, and region of the state. In short, there is no immunity from the financial burden imposed for a county of any sort.

Arkansas and Other States

Many states across our nation offer reimbursement rates that cover a greater cost than the current reimbursement rate employed in Arkansas. Different reimbursement methods are also offered by different states. Notably, a variety of states have implemented more generous rates and methods of reimbursement that ensure the fiscal responsibility of housing state prisoners in county jails is not overly burdensome on counties.

In Kansas, state reimbursement is made on a per diem basis and counties submit to the Department of Corrections their own associated maintenance costs. For the largest counties in the state, reimbursement rates are typically between $51.78 and $88.85. However, most counties in Kansas receive between $30 to $40, or the counties’ daily rate. Whichever amount is the lesser of the two is the amount awarded. These rates are above those we currently award in Arkansas. Requiring the lower value of the two helps ensure the costs associated with housing state prisoners are still adequately covered, while ensuring the state is not spending more than necessary. See State Prisoners in County Jails, National Association of Counties (NACo).

North Carolina provides a reimbursement rate to county jails greater than that offered in Arkansas, while limiting the type of state prisoners held in county facilities that the county may be reimbursed for. North Carolina limits reimbursement to state inmates in county jails that are subject to a state sentence of 90 days or more. The county is paid for these inmates each day for time held in the county prison during their sentence. The rate paid per day for these prisoners is $40. Extraordinary medical expenses for these prisoners are also reimbursed to the county by the state. These rates are above those currently awarded in Arkansas and offers both a bright line rule and financial reimbursement to counties. See State Prisoners in County Jails, NACo.

Arizona imposes a strict system for the transfer and reimbursement of state prisoners in county jails. The Arizona Department of Corrections is given a time limit in which state prisoners can be housed in county jails. After being held in county jail for 10 days after sentencing, the Arizona Department of Corrections must receive the state prisoners. This helps ensure state prisoners are not sitting in county jails for an over-extensive period, while also easing the financial burden on the counties. Notably, the reimbursement rates in Arizona do vary from a minimum of $30.09 to a high of $69.14. With such a broad range, some county jails are receiving less than county jails here in Arkansas. However, a strong portion of county jails are receiving reimbursement rates above our current rate of $32 per day. The benefits of the Arizona system are a limit on the amount of time county jails are responsible for state prisoners, while also ensuring county jails receive adequate compensation for the services they deliver to state prisoners. See State Prisoners in County Jails, NACo.

How Can the State Help our Counites?

The unreimbursed costs of county jails housing and caring for state inmates has posed budgetary issues for all counties. While our counties may be able to rely on budgetary maneuvers and the use of county general revenue to cover these costs temporarily, not addressing the current gap in the rate of reimbursement and actual costs faced by counties for state inmates poses a long-term challenge in county budgeting and finance.

While we are thankful for increases in the reimbursement rate, further increases in appropriation and the reimbursement rate are necessary to cover the costs faced by county jails in providing services for state prisoners. The amount being received by counties from the state is simply not enough. The rate and amount at which the reimbursement has been gradually increased falls short of what is needed by our counties to provide state inmates held in county jail facilities with care, custody, treatment, and transportation. Ensuring our counties receive the necessary amount of reimbursement for these responsibilities should be a top priority for our state government.