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Population changes, medical contract negotiations drive Idaho corrections’ county/out‑of‑state cost requests
Summary
Legislative analysts told the Joint Finance Preparations Committee that county jail housing and medical services costs rose because of population shifts and medical contract negotiations; the department projects increases but said per‑diems remain unchanged and outcome depends on whether negotiations avoid a 30–40% bid‑phase jump.
The Idaho Department of Correction’s County and Out‑of‑State Placement and Medical Services budgets face population‑driven pressures that the department and Legislative Services Office said could increase operating appropriations for fiscal 2026.
Noah Peterson, budget and policy analyst for the Legislative Services Office, told the Joint Finance Preparations Committee that supplemental and ongoing requests largely reflect updated custody projections and higher medical utilization than previously forecast. For fiscal 2025 the department sought population adjustments to county and out‑of‑state per‑diems; the LSO presentation reported a $2,958,000 increase (fiscal 2024 adjustment restored in the base) and a $1,923,700 increase for fiscal 2025 tied to population movements.
Peterson said the department is negotiating with its current medical services contractor; if those negotiations succeed, the agency projects roughly a 10% increase in contract cost versus prior years. If negotiations fail and the contract is re‑bid, the agency estimates a 30% to 40% increase. The LSO presentation included a supplemental request to cover higher utilization that totaled $5,957,200.
Peterson emphasized the per‑diem rates themselves remain unchanged in the department’s projections; the increase in total cost is driven by changes in the number of days served and populations housed in county and out‑of‑state facilities. He also noted that county per‑diems have a two‑tier structure (rates differ for stays under and over seven days), and Director Josh Tewalt told the committee those rates are set in Idaho code with the shorter‑stay rate intended to encourage quicker state pickup from county jails.
Lawmakers asked for more detail on how per‑diem rates are set and for clearer data underlying the department’s population forecasts. No votes were taken at the hearing.
