The Kentucky Association of Counties outlined its 2026 legislative priorities Thursday before the Interim Joint Committee on Local Government, warning lawmakers that county jails are at a crisis point due to continually rising costs and proposing a three-part plan to reshape how the state and counties share responsibility for incarceration.
Presenting on behalf of KACo were President and Union County Judge/Executive Adam O’Nan, Immediate Past President and Harlan County Judge/Executive Dan Mosley, KACo Executive Director Jim Henderson and Director of Government Affairs Shellie Hampton.
“This will be the issue you'll hear county officials talk about frequently going into the [legislative] session,” Henderson said, noting that judge/executives, magistrates and other officials from more than a dozen counties traveled to Frankfort for the committee meeting. “The stage has been set for us to really talk about solutions.”
Over the past six years, the amount of money transferred from county general fund budgets to support county jails has increased 76%, from $96.5 million in FY2019 to nearly $170 million in FY2025 (excluding Fayette and Jefferson counties). Fayette and Jefferson combined for more than $100 million in general fund transfers to their local detention centers in FY2025.
The continued strain on county budgets has required some communities to impose tax increases and/or cut funding to other services.
Following months of research and gathering input from across the state, the KACo Board of Directors voted to endorse a comprehensive approach – “Reshaping the Shared Responsibility for County Jails in Kentucky” – as its primary legislative priority to include three points:
- Incentivizing regional jails
- Clarifying responsibility for pre-trial felony detainees
- Redefining the state inmate housing model
Pushing for regional jail incentives
Kentucky has 70 full-service jails, but 43 counties operate no jail and must contract with neighboring facilities. Only four regional jails currently exist, despite interest in several parts of the state.
“[Union County] saved $700,000 by closing our jail and taking inmates to Webster County,” Judge O’Nan said. “We know that there are clusters of counties that are interested in moving towards a regional model. Regionalization may not work everywhere, but in areas where it is feasible, we believe some targeted small incentives and statutory adjustments would make this option far more attainable.”
KACo’s recommendations include:
- One-time state funding for construction or renovation of regional facilities
- Allowing counties to convert former jails into 96-hour holdover facilities
- Expanding regional jail authority board membership to include all participating counties’ jailers
- Increasing the long-stagnant jail supplement for closed county jails
- A one-time incentive payment for counties that close a jail and join a regional authority
Clarifying responsibility for pre-trial felony detainees
Harlan County Judge/Executive Dan Mosley detailed KACo’s second priority, determining who should bear the cost of housing inmates while they are awaiting trial on a felony charge, which could take months or even years.
He cited an example of a Harlan County inmate who has been incarcerated for three years awaiting trial on a murder charge. The inmate has cancer, and the county bears all costs associated with their housing, food and medical care.
If a person is found guilty of a felony offense, the county continues paying the full cost of housing the inmate until sentencing, when the state beings paying counties a per diem for housing state inmates. Kentucky law credits the time an inmate spent in jail awaiting trial toward the inmate’s state sentence, effectively lowering the cost to the state but not to the county.
“In Harlan County, we’ve had individuals receive enough credit for time served that their entire sentence was satisfied the day of sentencing, meaning that the county paid the total cost of incarceration,” Mosley said.
KACo supports reviving legislation that would reimburse counties for the pre-trial time credited to felony sentences.
“This approach is fair, recognizes the cost borne by counties, and acknowledges the financial benefit that the state receives when pre-trial time counts toward a felony sentence,” Mosley said.
A new model for housing state inmates
KACo Director of Government Affairs Shellie Hampton closed the presentation by urging lawmakers to replace the current per diem for state inmates.
Counties house an average of 7,120 state inmates, receiving a $35.34 per diem rate from the state. That amount is far below the $63.44 average daily cost per inmate to operate county jails (excluding Fayette and Jefferson counties) in FY2025.
“That funding gap has got be addressed,” Hampton said. “At the same time, we recognize that this is a state-county partnership, and that accountability on both sides is essential to ensure that jails are supporting our shared goal of rehabilitation.”
KACo recommends requiring the Department of Corrections to contract with each fiscal court or regional jail authority, paying the actual cost of housing state inmates. In exchange, jails would agree to provide programming such as substance-use treatment, cognitive-behavioral programs, reentry services and workforce training. Hampton told legislators that while several county jails already offer some of these programs, many are unable to without funding.
Under KACo’s proposal, the state would not be required to contract with jails that are unable to meet program and service requirements.
“We believe this proposal overall creates a fair and transparent approach,” Hampton said. “Counties would receive adequate funding to house state inmates on behalf of the Commonwealth, and the state would have confidence that inmates are receiving the tools as well as the services they need to successfully return to their communities.”
Click here to view a recording of the committee meeting.
Click here to view KACo’s slide presentation.
