INDIANA – The Indiana Department of Corrections (IDOC) has exhausted its funds to reimburse county jails for housing low-level felons and state prisoners, leaving counties without payments for months, with four months remaining in the current fiscal year.
Tippecanoe County Sheriff Robert Goldsmith, who also serves as president of the Indiana Sheriffs’ Association, expressed his disappointment, stating, “It’s very disappointing… As far as on their end, and why they’re not able to pay, I don’t understand that part of it enough even to get mad.”
IDOC spokeswoman Annie Goeller confirmed that “funding for this expense has been exhausted for State Fiscal Year 2025,” and that the department is “working with the State Budget Agency on available options” while communicating with counties.
Lawrence County Sheriff Greg Day said the county hasn’t received a payment from the Department of Corrections since August.
The current state budget allocated $34 million annually for the county jail maintenance contingency fund, which reimburses sheriffs for holding Level 6 felons (a practice established by a 2013 criminal justice overhaul) and other state-owed prisoners. Up to $25.3 million of this was 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 exhausted the $34 million for fiscal year 2025.
State Representative Greg Steuerwald, R-Avon, learned of the funding shortage and assured that lawmakers intend to provide back pay and increase the per diem rate. “Everything owed will be paid,” he stated.
Steve Luce, executive director of the Indiana Sheriffs’ Association, is advocating for a new, more accurate billing system for the next fiscal year, moving away from the current formula-based reimbursement. Luce also highlighted that the state saves money by housing prisoners in county jails, as it costs IDOC $79 a day to house a prisoner compared to the $40 per diem. He estimates about 2,500 IDOC holds annually in county jails and believes the previous funding might have been underestimated due to recent changes. The association will continue to push for a budget increase to prevent taxpayers from bearing the financial burden.
