Kentucky Association of Counties

2021-2022 Budget Requests

AUDIT COSTS

Restore cost apportionment to 50 percent

• In 2018, language was included in HB366 that substantially increased the portion a county must pay of the cost to be audited by the Auditor of Public Accounts from the 50 percent outlined in KRS 43.070(3) to 75 percent.
• This has resulted in millions of dollars in additional costs being pushed down to counties and is unsustainable.
• KACo requests that the original apportionment of 50 percent of audit costs be restored.
• KACo requests that the required audit may be performed by the Auditor or a certified public accountant. The county may:
  • Elect to authorize the Auditor to conduct the audit; or
  • Elect to solicit competitive bids for the audit.
  • If the county elects for competitive bidding:
    • The county shall follow the Kentucky Model Procurement Code, if the county has adopted the Kentucky Model Procurement Code or KRS 424.260, if the county has not adopted the Kentucky Model Procurement Code. But there shall be no minimum amount exclusion, no exclusion for professional services, and the county shall comply with the exception provided for in paragraph (c) of this subsection;
    • The Auditor may submit a bid and the county shall evaluate the Auditor's bid, if any; and
    • The county shall accept the bid tendered by the Auditor so long as the bid amount is not more than one hundred percent (100%) greater than the lowest bid submitted by a certified public accountant. (SEE ATTACHED BILL DRAFT FOR CONTEXT)

JAILS

Ensure full funding of the local assistance fund for county jails ($4,630,200 annually)

• Restore the formula language:

(1) Local Corrections Assistance Fund Allocation: Notwithstanding KRS 196.288(5)(a), included in the above General Fund appropriation is $4,630,200 in each fiscal year for the Local Corrections Assistance Fund. Moneys in the fund shall be distributed to the counties each year. Amounts distributed from the fund shall be used to support local correctional facilities and programs, including the transportation of prisoners, as follows:

(a) In each fiscal year, the first $3,000,000 received by the fund, or, if the fund receives less than $3,000,000, the entire balance of the fund, shall be divided equally among all counties; and

(b) Any moneys remaining after making the distributions required by paragraph (a) of this subsection shall be distributed to each county based on a ratio, the numerator of which shall be the county's county inmate population on the second Thursday in January during the prior fiscal year, and the denominator of which shall be the total counties' county inmate population for the entire state on the second Thursday in January during the prior fiscal year.

Maintain funding for life safety jails and closed county jails ($880,000 annually)

• Restore the language directing the Department of Corrections to help supplement the financial cost of transportation and healthcare of those county inmates housed in other facilities.

BUDGET LANGUAGE: (3) Life Safety or Closed Jails: Included in the above General Fund appropriation is $880,000 in each fiscal year to provide a monthly payment of an annual amount of $20,000 to each county with a life safety jail or closed jail. The payment shall be in addition to the payment required by KRS 441.206(2). 

Maintain funding for inmate medical care expenses ($1,644,600 annually)

• The inmate catastrophic fund is in place to help offset the cost to counties in the event of catastrophic medical needs of inmates. The Commonwealth reports that the average healthcare cost of an inmate is $15.01 per day. County jails are reimbursed $1.91 per day per inmate healthcare needs. We ask that you restore the funding and language surrounding that fund.
• Inmate Medical Care Expenses: Included in the above General Fund appropriation is $792,800 in each fiscal year for medical care contracts to be distributed, upon approval of the Department of Corrections, to counties by the formula codified in KRS 441.206, and $851,800 in each fiscal year, on a partial reimbursement basis, for expenses not covered by the expansion population.