County attorney: jail‑cadet fund can likely pay corrections salaries; council weighs transfers

County Attorney Steve Olson told Elkhart County Councilors Wednesday that the county’s criminal‑justice quarter‑percent fund—established by state legislation and implemented locally by ordinance—has been broadened by a 2013 amendment and can cover operations and some employee expenses related to jail facilities and probation facilities.

“Probation officers would be within the probation facilities, and I would say would be closer. So you'd probably go jail as your primary, probation secondary... I would say your standard sheriff employees would not be a qualified fit under the existing ordinance,” Olson said when asked whether patrol officers or corrections staff would qualify for funding from the jail cadet fund. He added he would “take a second look” at the statutes and return with follow‑up guidance.

Why it matters: Councilors are considering moving salary lines for corrections positions out of the general fund and into the criminal‑justice fund to reduce general‑fund pressure. That fund currently has an estimated balance and future distributions that make such a transfer possible in the short term, but counsel and administrators warned transfers must preserve bond covenants and long‑term fund viability.

Numbers and constraints discussed: County staff reported the jail cadet fund’s anticipated distribution for 2026 at roughly $18,300,000 and noted 2025 distributions of about $17–18 million. Current bond payments tied to the jail are roughly $10,000,000 annually; staff said those bond payments will decline in subsequent years as leases mature, leaving roughly $7,000,000 of discretionary capacity after bond obligations in future years. Olson recommended limiting transfers to corrections positions within jail facilities (for example, corrections officers) and verifying whether probation staff could be included under the ordinance’s language.

Specific proposals discussed: Sheriff’s staff suggested moving approximately $6,000,000 in salary lines to the jail cadet fund for corrections positions, while leaving a cushion (about $900,000) in the general fund to cover initial checks before a January appropriation. Olson outlined the mechanics: “The mechanics of that would be to make the reduction in this year's general fund budget, then you'd come back January 1 with an additional on that jail gadget to fund that.”

Risks and next steps: Olson and administrators cautioned that drawing down the jail fund faster than its revenue will be replenished could leave insufficient resources for bond payments or future capital needs. Olson said he would review the 2002/2003 enabling legislation, the county’s 2003 ordinance and the 2013 amendment to confirm permissible uses and return with a legal opinion. Administrators said staff would prepare precise salary and benefit figures for the corrections positions under consideration and would leave a temporary cushion in the general fund to avoid cash‑flow problems until January appropriations are in place.

Ending: Councilors gave direction to staff to further refine numbers and legal analysis and scheduled additional follow‑up with the sheriff's office and county counsel at the next work session.