Rep. Michael Meredith (R-Edmonson County) continues to gather feedback on legislation that would ease financial pressures faced by county jails and fiscal courts.
He and KACo Director of Government Affairs Shellie Hampton testified Wednesday before the Interim Joint Committee on Veterans, Military Affairs and Public Protection. They outlined House Bill 557, which Meredith sponsored during the 2026 legislative session and had broad support from jailers, judge/executives, magistrates and commissioners.
A key component of HB 557 would address credit for time served by reimbursing counties for the pre-trial cost of housing felony defendants.
Meredith used a hypothetical example of a person being held in a county jail for a year before their case goes to trial. During that time, the county jail is responsible for the housing, food and medical care of the defendant. Their case goes to trial, the defendant is convicted and receives a five-year sentence, with credit for the one year they were already incarcerated. If the county jail continues to house the inmate after sentencing, the state Department of Corrections reimburses the county only for the remainder of the sentence.
“So, the state is now only having to house them for four years,” Meredith explained. “But there is no funding coming back to the county for the year that came off the state’s time and was paid for by the county.”
Under HB 557, the state would reimburse counties for those sentencing credits, helping offset costs that counties currently absorb. Meredith presented five-year average estimates of the potential annual reimbursements for counties across Kentucky, based on the current state per diem rate of $35.34.
The estimates illustrate the potential impact on local budgets. Fayette County could receive approximately $4.8 million annually, while Jefferson County could receive more than $11 million. Other estimates included nearly $2.5 million for Daviess County, about $2.1 million for Warren County, approximately $1.3 million for Christian County and $225,000 for Edmonson County.- Note: See credit for time served reimbursement estimates for all 120 Kentucky counties in table below.
While the current per diem rate is $35.34, analysis by KACo found that the actual cost to house an inmate in county jails is approximately $63.44 per day.
HB 557 also proposed a direct-contracting model between the Department of Corrections and county jails that would allow reimbursement rates to better reflect actual housing costs.
Meredith said the two approaches work together, particularly for counties that do not operate their own jails. Raising the state per diem alone can increase costs for counties without jails when the facilities they contract with pass along higher rates.
“That’s why the credit for time served component is so important because it benefits them as well as the open jail counties,” Meredith said.
Together, the credit-for-time-served provision and proposed changes to state inmate reimbursement were part of a broader package Meredith said would have an estimated annual fiscal impact of approximately $200 million when HB 557 was filed.
Wednesday’s committee presentation was the second time this month Meredith and KACo have discussed the jail proposal, after previously testifying before the Interim Joint Committee on Judiciary.
Meredith acknowledged that the proposal could be revised as lawmakers continue working toward a comprehensive solution.
