INDIANA – Indiana counties face financial strain as the Indiana Department of Correction (IDOC) has exhausted its funds for reimbursing jails for housing low-level felons and state prisoners. With four months remaining in the fiscal year, counties have gone months without receiving payments.
Tippecanoe County Sheriff Robert Goldsmith, president of the Indiana Sheriffs’ Association, expressed disappointment, stating he doesn’t understand why the funds are depleted. IDOC confirmed the funding shortfall and is working with the State Budget Agency to find solutions.
The current state budget allocates $34 million annually to the county jail maintenance contingency fund, which covers Level 6 felons (who, following a 2013 criminal justice overhaul, are now housed in local jails at state expense) and individuals held for higher felonies or parole violations. Of that total, up to $25.3 million is designated for Level 6 felons at a rate of $40 per day. IDOC reported spending $34.6 million in fiscal year 2024 and has already spent $34 million in the current fiscal year.
State Rep. Greg Steuerwald stated that lawmakers will address the issue by providing back pay and increasing the per diem rate. Sheriff Goldsmith reported his county currently houses 30 offenders awaiting transfer or serving Level 6 sentences without reimbursement. He welcomed the potential per diem rate increase.
Indiana Sheriffs’ Association Executive Director Steve Luce is advocating for a new billing system and a rate increase, pointing out that the state saves money by housing prisoners in county jails compared to the $79 daily cost at state facilities. Luce attributed the shortfall to changes and inconsistent formulas rather than intentional underestimation. The association will continue to push for increased funding to alleviate the financial burden on taxpayers.
