The Joint Budget Committee on Thursday authorized the Bureau of Legislative Research staff to draft legislation to appropriate $4.2 million to the state Department of Corrections to reimburse county jails for holding state inmates and to fund the appropriation with $4.2 million in state general revenue.
In a voice with some audible dissenters, the committee voted to authorize legislative staff to draft the supplemental appropriation for fiscal year 2024 that ends June 30, after about 50 minutes of debate.
Gov. Sarah Huckabee Sanders asked Joint Budget Committee Co-Chairmen Sen. Jonathan Dismang, R-Searcy, and Rep. Lane Jean, R-Magnolia, in a letter for the introduction of the supplemental appropriation as a Joint Budget Committee bill.
"Additional appropriation and funding is needed to cover county jail reimbursement invoices for the remainder of (fiscal year 2024 that ends June 30)," according to the state Department of Corrections' supplemental appropriation request.
"If not approved, county jail reimbursement invoices will be held until (fiscal year 2025 that begins July 1)," according to the Department of Corrections' request. "Doing this will cause the Department to use (fiscal year 2025) appropriation and funding to cover (fiscal year 2024) invoices, which could potentially create another funding/appropriation need."
The department's fiscal 2024 appropriation for refunds and reimbursements totals $26.8 million. In her general revenue budget for fiscal year 2025, Sanders proposed keeping the general revenue allocation for county jail reimbursement at $25.7 million.
Sen. Jimmy Hickey, R-Texarkana, questioned Thursday why the Republican governor didn't include a $4.2 million increase in general revenue for county jail reimbursement in her proposed general revenue budget for fiscal year 2025. He said he sees the county jail reimbursement funding as a reoccurring expense that won't go away.
Robert Brech, deputy director of budget for the state Department of Finance and Administration, said the state Department of Corrections indicated the department needs $4.2 million more in general revenue for county jail reimbursement for fiscal year 2024, and Sanders and the Department of Finance and Administration agreed with the department's request
He acknowledged he doesn't believe the Department of Corrections will need the full request for $4.2 million in general revenue for county jail reimbursement for fiscal year 2024, but if the department doesn't use all of the $4.2 million requested for fiscal year 2024 the leftover funds will be carried over by the department into fiscal year 2025.
Brech said the department has been averaging about 1,800 inmates in county jails.
Hickey said he commends the governor for proposing only a 1.76 % increase in her general revenue budget for fiscal year 2025, but he wants to make sure that it's "a true 1.76 %" increase. The governor's budget blueprint would boost the state's general revenue budget by $109.3 million to $6.31 billion in fiscal year 2025, which starts July 1.
Brech said inserting a $2 million increase in general revenue for county jail reimbursement in the governor's general revenue would only increase the proposed percentage increase from fiscal year 2024 to fiscal year 2025 to 1.79%.
Dexter Payne, director of the state Department of Corrections' Division of Correction, said he expects the average number of inmates in county jails to increase from about 1,800 to at least 2,000. The county jail backup totals about 2,200 and fluctuates, he said.
Brech said he determined the average number of inmates in county jails at 1,800 a few weeks ago based on the Department of Corrections' reports.
Dismang said if the state Department of Corrections ran out of money to reimburse counties for holding state inmates, the department would have to ask the Legislative Council's Performance Evaluation and Expenditure Review Subcommittee for approval for additional funds to reimburse the counties, and that would place a burden on the counties waiting to get paid.
The counties deserve to be paid by the state for holding state inmates, he said.
Brech said the $4.2 million in general revenue requested for the Department of Corrections to reimburse counties for holding state inmates would come from $7.6 million in the general revenue allotment reserve fund from unspent funds reclaimed from state agencies, and most of that $7.6 million was reclaimed from the state Department of Corrections.
Chad Brown, chief financial officer for the state Department of Corrections, said the department will get "very close" to spending the $4.2 million in additional general revenue requested in fiscal year 2024 for county jail reimbursement.
Brech said he believes $3 million more in general revenue would be sufficient for the department for county jail reimbursement for fiscal year 2024, but he doesn't have a problem with request for $4.2 million more in general revenue for fiscal year 2024.
Jean said "we don't need our county jails not getting paid in May or June" during the last two months of the fiscal year 2024.
Referring to Hickey, Jean said "we know you are watching the dollars." But he said the request for $4.2 million in additional general revenue in fiscal year 2024 "is a very small amount," and he wants to protect the county jails.