With the costs to house inmates in county jails continuing to rise, county government officials remain focused on reshaping how the state contributes to jail funding.
Shellie Hampton, Director of Government Affairs for the Kentucky Association of Counties, testified this week before the Interim Joint Committee on Local Government.
“While counties absolutely have a role in incarceration, the balance of the partnership with the state is past due for a realignment,” Hampton said.
Hampton provided lawmakers an overview of House Bill 557, which KACo, the Kentucky County Judge/Executive Association, the Kentucky Magistrates and Commissioners Association and the Kentucky Jailers Association supported during the 2026 legislative session. The bill, sponsored by Rep. Michael Meredith, had more than 50 co-sponsors but did not receive a committee hearing.
Hampton said the issue remains a priority because counties continue to shoulder a growing share of the cost of operating jails. In fiscal year 2025, counties (excluding Fayette and Jefferson) transferred nearly $170 million from their general fund budgets to support jail operations.
“That funding covers ever-increasing health care cost for a less than healthy population, attempts at remaining competitive on salaries for jail employees, and capital and employee improvements, including inmate safety, food service, updating buildings, employee trainings, and more,” Hampton said.
Under HB 557, counties and the state would have shared responsibility for addressing jail capacity, funding and operations.
The bill included incentives for counties to create or join regional jail authorities, including $1 million grants for counties establishing or joining a regional jail and $500,000 for existing regional jails that accept new member counties. It also would have authorized 96-hour holdover facilities for counties with closed jails.
Another key provision would have clarified the state’s financial responsibility for people charged with felonies who remain in county jails while awaiting trial or a plea agreement. Hampton said counties can house these individuals for months or even years, often at significant expense.
The proposal also would have changed the state inmate housing model by requiring the Department of Corrections to negotiate annual contracts with county jails based on actual costs rather than the current fixed per diem. The current state per diem is $35.34, while Hampton said the average cost of operating a jail is $63.44 per inmate per day.
The bill also included county-side reforms, including increased inmate programming, daily medical professional presence and restrictions on transferring state inmates without prior Department of Corrections approval.
“It’s not just about what [counties] can get from the state partnership,” Hampton said. “This is us owning that accountability.”
Click here to watch KACo’s presentation at the Aug. 18, 2026 meeting of Interim Joint Committee on Local Government.
For more information about county jails in Kentucky, click here.
