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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowThe Indiana Department of Correction has run out of money to pay county jails for holding low-level felons and state prisoners.
County jails haven’t received payments in months, and there are still four months left in the July-to-June fiscal year.
“It’s very disappointing,” said Tippecanoe County Sheriff Robert Goldsmith, who is also president of the Indiana Sheriffs’ Association. “As far as on their end, and why they’re not able to pay, I don’t understand that part of it enough to even get mad.”
Indiana Department of Correction spokeswoman Annie Goeller confirmed Monday that “funding for this expense has been exhausted for State Fiscal Year 2025. IDOC is working with the State Budget Agency on available options. We are continuing to communicate with counties about this issue.”
The appropriation in the current state budget, which ends June 30, was $34 million annually for the county jail maintenance contingency fund. The fund reimburses sheriffs for two groups of offenders: anyone convicted of a Level 6 felony as well as anyone being held on higher felonies or parole for IDOC.
Of that amount, up to $25.3 million was set aside for the Level 6 felons at a rate of $40 per day. This group of offenders used to be sent to state prisons until a criminal justice overhaul in 2013. After that, low-level felons were kept in local jails at state expense.
IDOC said it spent $34.6 million in fiscal year 2024 and $34 million already in fiscal year 2025.
Rep. Greg Steuerwald, R-Avon, said he was surprised to find out Monday, during a committee hearing for unrelated legislation, that IDOC had run out of money. He told the Capital Chronicle on Tuesday that lawmakers will offer back pay and increase the per diem rate.
“Everything owed will be paid,” he said.
Ongoing issue
Goldsmith just found out about the lack of money last week. The last time his county was paid by the state was in August, which was the March billing.
He said on Tuesday that his jail currently has 30 offenders waiting to be transferred to IDOC or serving their Level 6 sentence—and the county is getting no reimbursement.
Goldsmith said he is glad to hear lawmakers are considering an increase in the per diem rate of $40 in the next state budget. The House Republican version hikes the rate to $43 a day.
“I’m just appreciative that they’re willing to sit at the table and have these conversations,” he said.
Steve Luce, executive director of the Indiana Sheriffs’ Association, said he is focusing on getting a new billing system in place for the next fiscal year. Luce said the current system involves a formula instead of a true billing system using actual counts.
He’s also seeking an increase. Luce noted it costs the state $79 a day to house a prisoner, so IDOC is saving money by leaving prisoners in county jails.
He said that overall, there are about 2,500 IDOC holds annually, and they stay for varying lengths of time depending on their sentence.
“I don’t think they underestimated it. I think they did, but not on purpose, because we have had some changes,” Luce said. “We haven’t had a consistent formula.”
The association will continue to push for an increase in the budget “because we are still losing money, and it’s coming on the taxpayers. So, what we’re trying to do is be fair and also work with them through the things that need to be fixed.”
Indiana Capital Chronicle is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Indiana Capital Chronicle maintains editorial independence. Contact Editor Niki Kelly for questions: info@indianacapitalchronicle.com.
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The United States has the highest incarceration rate in the world, as does the State of Indiana. Republicans’ solution to all problems is to put more people in jail, all the while they can’t even pay to incarcerate the people who are already incarcerated. Ridiculous.
So, can the county jails send the state’s prisoners back to the state? Just let them go? The state just announced it was having better than expected tax receipts. Shouldn’t maybe some of that money be used to pay the state’s legal debts?
It is amazing how these “low or no money” items keeping popping up. Last year it was the missing $1 billion from FSSA and now this year, IDOC can’t even pay its bills more than a couple of months into the fiscal year, yet the governor and crew want to cut taxes and annex additional counties from neighboring states while condenming Indianapolis for having “no turn on red” signs. Indiana needs to get its fiscal house in order.
Someone needs to be sent to debtors’ prison for failing to pay their bills. I bet the counties would be paid quickly. 10 nights in jail per county should be the punishment. Maybe the Gov and Lt Gov could swap places every 10 days.
While unable to pay its bills, the governor wants to expand the voucher program without any income limitations!
Some smaller counties built new jails as ‘profit centers,’ hoping to generate revenue by housing state prisoners. However, this model is flawed, by relying on a steady stream of new inmates whose housing costs must be borne by either the State or the local communities. We can all agree that violent offenders should be imprisoned, but the practice of jailing people with mental health issues and addiction problems implicates the failures of our justice system. Vulnerable individuals need treatment, not incarceration. So, who is ultimately responsible for these decisions? Local governments, state authorities, and the private companies that compose the incarceration industry are all responsible. The difficult question is how do we find more effective solutions?
Totally agree, Timothy. Or how about releasing some of the billions of surplus dollars the State has been stockpiling? Or, has all that money disappeared over the last several months? Honestly, I believe no one at the State Office Building knows what money they have or don’t have. Balance the freaking checkbook State of Indiana. Or per Robert M’s comment, legislators and the Gov/LT Gov go spend a few days in some of these jails, and of course you foot the attendance bill for your failure to pay up. What a fiasco!!!!!