Audit: DOC Failing To Properly Reimburse Counties For Housing State Inmates

A report released in December by Missouri State Auditor Nicole Galloway found that the Department of Corrections is failing to adequately reimburse counties for housing state inmates, causing increased subsidization at the local level.

The state is approximately $29 million in arrears to counties for reimbursement claims.

Thirty counties and the City of St. Louis indicated concerns or issues regarding the program and having to use general revenue funds or reserve funds to cover jail costs not paid by the state; having to make choices of eliminating other services or increasing local tax rates to cover unreimbursed costs and hiring issues to low salary or inability to purchase necessary equipment.

“Several counties indicated they do not budget revenue for county jail reimbursements due to the unreliability of receiving timely reimbursement by the state,” according to the audit.

Galloway’s office said that appropriations and reimbursement rates for criminal costs, transportation and extradition for state prisoners to Missouri counties have generally kept up with inflation, but not with requests submitted by the counties.

The reimbursement rate paid to counties in fiscal year 2020 is “essentially the same rate paid in 1998” according to the audit.

Incarceration costs incurred by counties have continued to increase, which is resulting in county governments increasingly subsidizing state incarceration costs.

The audit states that in 2006, the DOC took over the responsibility of covering reimbursement claims from the Office of Administration due to arrearage.

However, the DOC did not start officially tracking annual county reimbursement requests and arrearages until January 2016.

Therefore, the total number of prisoner days requested annually prior to 2016 is unknown.

A review of the data by the auditor’s office finds that between fiscal year 2017 and fiscal year 2020, arrearages increased by approximately $6 million, to a cumulative $29 million.

The audit said clarity is needed in state law.

“Officials from the Department of Corrections (DOC) as well as several county officials stated the statutory wording of Section 221.105.3, RSMo, was unclear regarding the state's potential maximum liability to counties and could be open to multiple interpretations,” the report stated. “The state prisoner transport reimbursement methodology does not align with actual costs incurred by the counties. State law defining which cases are eligible for county reimbursement is inconsistent and can result in uncertainty for counties about when and if incarceration costs for certain inmates will be reimbursed, and can result in administrative burden.

Further, the audit says that DOC has not requested sufficient funds to pay oustanding liabilities to counties and the department’s annual budget requests have not acknowledged the state’s liability to those county governments.

Galloway recommends that the General Assembly evaluate the current funding appropriated to the incarceration reimbursement program, ensuring it is paying “the desired level of resources to the local level.” 

The auditor also recommends: 

The ssembly reviewing Section 221.105, amending the statute to clarify legislative intent and statutory requirements of county reimbursement rates;

Amending Section 57.290.2 to align prisoner transportation reimbursements with actual costs incurred; and,

Consider amending state law to provide consistency among cases receiving state reimbursement and reduce the time period between the time boarding services are provided and reimbursements are paid to counties.