INDIANA — The Indiana Department of Correction (DOC) will begin sending payments to dozens of counties on Monday to cover the costs of housing state prisoners, ending months of delays that left local jails without reimbursements.
According to DOC spokesperson Annie Goeller, the department has been working to ensure the accuracy of all money owed to the counties.
The delays stemmed from two separate payment streams: funding for Level 6 felony diversions and per diem reimbursements for state prisoners held in county jails while awaiting transfer.
Level 6 Felony Funding and Debt Forgiveness
Since a 2013 criminal justice overhaul, low-level Level 6 felons have been housed in local jails at the state’s expense. Goeller explained that the funding formula established in 2019 for these diversions is now outdated, resulting in overpayments to 51 counties, totaling approximately $7.7 million. The DOC will forgive this debt rather than seek repayment.
Notable overpayments include nearly $599,000 to Kosciusko County, more than $254,000 to Greene County, and approximately $264,000 to Clark County.
Resumption of Jail Hold Reimbursements
In addition to the Level 6 payments, the DOC will also resume reimbursements for jail holds, where inmates convicted of state crimes remain in county jails beyond the mandated five-day pickup window.
The Lawrence County Sheriff’s Department, for example, has not received these payments since August 2024.
Goeller stated that the DOC currently owes approximately $6.1 million to 41 counties for these holds, and that reimbursements will begin immediately. The General Assembly raised the per diem rate for these holds earlier this year.
Several northern Indiana counties are set to receive the largest payments due to a high number of state holds. Elkhart County owes over $638,000 for more than 34,000 days of holds, while St. Joseph County owes nearly $397,000. Other counties, such as Delaware and Vigo, will receive over $200,000. All reimbursements will be made in a single distribution next week from the DOC’s budget.
