KRS 441.025 mandates counties to provide for the incarceration of prisoners arrested in the county. Counties can meet this requirement by either operating their own jail, using a regional jail or contracting with another county for the use of its facility.
As of 2024, 43 counties in Kentucky do not have a jail, opting to contract with other counties or utilize a regional jail. These counties are commonly referred to as "closed jail counties." Since 2019, three counties—Lewis, Lincoln and Union—have closed their full-service jails. For more information on jail classifications, click here.
County expenditures for closed jails
Even when a county does not operate its own jail, it remains financially responsible for the incarceration of inmates arrested within its jurisdiction. This includes covering the costs for the transportation of prisoners, such as providing vehicles, transportation officers and guards.
These counties negotiate a per diem rate with other counties to house their inmates. The rate varies by county, depending on factors such as the cost of housing inmates, jail capacity and the state per diem reimbursement rate.
In FY2023, the 43 closed jail counties spent more than $22 million on incarceration-related expenses. The largest expense was contracting with other counties to house inmates, which totaled $14 million (63%). Personnel costs were the second largest expense at $5 million (24%), while medical costs accounted for $1.1 million (5%). Routine medical care is often included in the per diem contract for housing inmates, so the total cost of medical services is not fully reflected in the reported medical expenses.
Revenue for closed jail counties
In FY2023, the 43 closed jail counties transferred approximately $18 million from their general funds to their jail funds, accounting for 80% of total jail revenue.
On average, each county transferred $415,000 from its general fund to its jail fund, ranging from $0 (Carlisle County) to $1.1 million (Union County).
These counties receive state funding through various allocations, including the b ed allotment (KRS 441.206), medical allotment, and the local corrections assistance fund (KRS 441.207). Additionally, the state budget has included a supplemental payment of $20,000 per fiscal year to closed county jails. This amount has remained unchanged since it was first established in FY2006, nearly 20 years ago. For more information on state funding sources, click here.
Altogether, closed counties receive about $3.2 million in state allocations, which makes up 14% of their total jail revenue.
These counties can also apply for reimbursement from the catastrophic medical fund. For more information on this fund, click here.
Other funding sources for closed counties include court cost supplements, DUI fees and jail fees charged to inmates. 
