Counties, as political subdivisions of the state, are tasked with carrying out essential state functions at the local level. One of these critical functions is operating county jails.
State statute requires counties to provide for the incarceration of people arrested in the county by operating a county jail, utilizing a regional jail, or contracting with another county for the use of its jail (KRS 441.025).
The cost of county jails is the most significant budgetary challenge faced by most fiscal courts – regardless of whether the county operates a jail or contracts with other counties. In FY2023, counties spent almost $350 million on jails (excludes Fayette and Jefferson).
The state helps offset some of these costs by providing funding through base allocations and reimbursing counties for housing state inmates.
Base funding for county jails
The state provides funding to assist all counties through the programs listed below, amounting to a total of $16.3 million in funding each year.
Bed allotment
According to KRS 441.206, all counties receive a bed allotment “for the care and maintenance of prisoners charged with or convicted of violations of state law.” Counties receive approximately $9.1 million each fiscal year in bed allotment payments.
The allotment is distributed to counties based on a statutory formula that has not been updated in more than 40 years:
- 60% based on the amount of the 1983-84 funding formula each county received, or should have received;
- 10% based on each county's comparative ranking of median household income in inverse order, as determined by the 1980 federal census of population; and
- 30% based on the proportion of each county’s age at risk population (18-34) to the state total, as determined by the 1980 federal census of population
The state budget includes a supplemental $20,000 each fiscal year for closed county jails, in addition to the bed allotment payments. This supplemental payment has remained unchanged at $20,000 since its establishment in FY2006 nearly 20 years ago.
Local corrections assistance fund
All counties receive an allocation from the local corrections assistance fund, which was established in 2011 to support programs and operations at local correctional facilities, including the transportation of prisoners.
The state budget allocated $4.6 million to this fund in FY2025 and FY2026. The first $3 million is distributed equally among all counties, while the remaining funds are allocated based on the number of county inmates in a jail’s custody.
Restricted medical allotment
All counties also receive a restricted medical allotment to support medical contracts. The state budget allocated $792,800 each fiscal year for this funding, which is distributed to counties based on the bed allotment formula outlined above.
Catastrophic medical
All counties are eligible to apply to the catastrophic medical program, which provides partial reimbursement for the costs of necessary medical, dental, or psychological care for a county inmate when it exceeds $1,000 (KRS 441.045). The state budget provided $851,800 each fiscal year for this program. For more information, click here.
Funding for state inmates
In 2024, the average weekly state inmate population in county jails was 7,465. State law mandates that most Class D felony and some Class C felony inmates serve their sentence in county jail (KRS 532.100). For more information on state inmates in county jails, click here.
Because counties house state inmates on behalf of the state, the state provides funding to counties through a per diem reimbursement and payments for program completion.
Per diem reimbursement
Counties receive a per diem reimbursement of $35.34 for housing state inmates and may receive additional funding for inmate program attendance. According to the Department of Corrections the state reimbursed counties $115 million for housing state inmates in FY2023. For more information on the jail per diem, click here.
Program completion and sentencing credits
Counties receive funding when state inmates complete programs or receive sentencing credits (KRS 197.045). The FY2025-FY2026 state budget included $12 million each fiscal year for the program.
When a state inmate earns sentencing credits while serving time in a county jail, at the end of their confinement in that facility, DOC is required to pay the county:
- $1,000 for program completion that resulted in a 90-day sentencing credit
- $600 for program completion that resulted in a 60-day sentencing credit
- $300 for program completion that resulted in a 30-day sentencing credit
