The Indiana Department of Correction (IDOC) has exhausted its allocated funds for reimbursing county jails that house state prisoners, leaving local facilities to shoulder the financial burden. With four months remaining in the fiscal year, counties across the state are scrambling to cover costs.
Tippecanoe County Sheriff Robert Goldsmith, who also serves as president of the Indiana Sheriffs’ Association, expressed frustration over the situation. “It’s very disappointing,” he said. “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.”
IDOC spokeswoman Annie Goeller confirmed Monday that the department had spent its full $34 million allocation for the 2025 fiscal year. “We are working with the State Budget Agency on available options and continuing to communicate with counties about this issue,” she said.
Millions Owed, No Immediate Relief
The state had set aside $34 million annually to reimburse county jails for housing two groups of prisoners: those convicted of Level 6 felonies and those awaiting transfer to state prisons. However, IDOC had already spent $34.6 million in fiscal year 2024 and the full 2025 budget just eight months into the cycle.
Representative Greg Steuerwald, R-Avon, said he was surprised to learn about the shortfall during a legislative hearing. He assured county officials that lawmakers would allocate back pay and increase the per diem rate for housing inmates. “Everything owed will be paid,” Steuerwald stated.
Counties Left in Limbo
Goldsmith noted that Tippecanoe County has not received state payments since August, meaning they are covering costs for at least 30 inmates without reimbursement. This is not an isolated case. County jails across Indiana are facing similar financial strains as they wait for a resolution.
- Up to $25.3 million of the budget was earmarked for Level 6 offenders at a rate of $40 per day.
- Some inmates remain in county jails for months before being transferred, stretching local resources thin.
- The House Republican budget proposal seeks to raise the per diem rate to $43 per day, but even that may not be enough.
“I’m just appreciative that they’re willing to sit at the table and have these conversations,” Goldsmith said.
Costs Mounting for Counties
Steve Luce, executive director of the Indiana Sheriffs’ Association, is advocating for a more accurate billing system to prevent future shortfalls. Currently, the state uses a formula rather than actual prisoner counts, which can lead to funding discrepancies.
He emphasized that keeping inmates in county jails is already a cost-saving measure for the state. “It costs the state $79 a day to house a prisoner,” Luce explained. “By leaving them in county jails, IDOC is saving money.”
A table highlighting the cost differences underscores the issue:
| Facility Type | Cost Per Inmate Per Day |
|---|---|
| State Prison | $79 |
| County Jail | $40 (proposed $43) |
With roughly 2,500 IDOC prisoners held in county jails annually, the financial impact is significant. Luce believes that lawmakers did not intentionally underestimate the necessary funding but acknowledges that inconsistencies in the formula have led to the shortfall.
Looking Ahead
County officials and the Sheriffs’ Association are pushing for increased funding and a revised reimbursement structure. “We are still losing money, and it’s coming on the taxpayers,” Luce said. “We need a fair system that works for everyone.”
As the state works to resolve the crisis, county jails will continue shouldering the burden, waiting for the promised back payments and a long-term solution
