Committee hears proposal to set $40 minimum jail per diem as counties warn costs outpace reimbursements

House Committee on Public Institutions members heard testimony on House Bill 170, a measure sponsored by Representative Brown that would change state law to set a minimum reimbursement of $40 per day for counties that house people charged with state offenses.

The bill seeks to replace a law dating to 1997 that sets a maximum reimbursement of $37.50 per day and, as presented to the committee, would establish $40 as a statutory floor subject to appropriation. Representative Brown said the $40 figure came from a breakdown provided by a county sheriff that put the minimum cost to house a prisoner at "$40.21 a day." He told the committee the proposal is intended to give counties more predictable support from the state and to ease budget choices that have removed deputies from patrol duties to cover jail costs.

Representative Brown said, "Since 1997 we have had a maximum rate of reimbursement of $37.5. This bill wants to set the floor a minimum of $40 per day for reimbursement to the counties." He described the proposal as "just kind of the floor" and said he is open to amendments.

Susan Pulliam, director of budget and finance for the Department of Corrections, reviewed the department's breakdown of eligible days and payments. "All of these days listed are paid days," Pulliam said, and she told the committee that "new sentence pre-sentence days ... make up 76% of what is of the days paid out." The department explained that only certain categories of days—chiefly those tied to a later state sentence or revocation—qualify for state reimbursement under current practice.

County officials and sheriffs testifying in favor of the bill described steep cost increases. Kyle Carroll, presiding commissioner of DeKalb County, told the committee that insurance costs alone rose by about $100,000 for his regional jail in the last two years. Osage County Sheriff Mike Bonham said his per-inmate cost was "just over $45" a day and that jail staffing and meals have grown substantially. Bonham said local budgets are strained and that some counties must house inmates in other counties because of local capacity or cost pressures.

Lobbyists and county association representatives emphasized two recurring themes: (1) pretrial confinement days account for the largest share of reimbursable days under current rules, and (2) counties shoulder medical and mental-health costs that state policy and federal rules do not currently cover. Trent Watson, a registered lobbyist for the Missouri Association of Counties, told the committee that "when someone is arrested, if they are on Medicaid, they immediately lose their benefits, not convicted of the crime, but charged with the crime," and he urged the General Assembly to pursue federal waivers or other solutions to relieve counties of that expense.

Witnesses said the fiscal impact would be substantial. Representative Collins and witnesses discussed a budget estimate the sponsor shared with the committee that put the probable fiscal impact at roughly $40,000,000 in state costs if a $40 floor were enacted at current incarceration levels; Representative Brown and others said final funding would remain "subject to appropriation." The Department of Corrections told members that housing in state facilities costs roughly $100 per day, illustrating the gap between local costs and available state payments.

Committee members asked for additional material. Representative Faulkner and others requested the county-provided cost breakdowns and the spreadsheet the department distributed showing categories of reimbursable days; the sponsor and several county witnesses said they would provide more detailed data. The committee did not vote on the bill at the hearing; members said they plan to collect additional testimony and data in future meetings.

Testimony also flagged related policy issues the committee may consider later: a backlog of people held in county jails while awaiting mental-health evaluations or placements; juvenile certification and who bears transportation costs for certified juveniles; and the effect of Medicaid eligibility rules on county medical bills.

No formal action was taken on House Bill 170 at the hearing. Committee members signaled interest in further analysis of the fiscal estimate, the distribution of reimbursable day types, and possible legislative or federal options to reduce county medical and mental-health costs.

The committee hearing concluded after more than a dozen county officials, sheriffs and association representatives testified in favor of the bill and described local budgetary strain linked to jail operations. The sponsor said he will accept amendment suggestions as the committee continues to collect evidence.