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FCC rule on inmate communications jolts county: vendor objections and revenue risk
Summary
Budget committee heard that a new FCC rule limiting charges for inmate phone/video services has opened for comment; the county’s provider (NCIC) and industry peers are preparing objections and a possible stay, and officials warned that lower allowable rates could force vendors out of business and cut inmate-service revenue.
County corrections and budget staff raised an operational and revenue risk tied to a Federal Communications Commission rule that limits what private vendors can charge for inmate phone and video services.
Corrections staff said the FCC rule reduces allowable rates and that the county’s current vendor, NCIC, along with others in the industry, is preparing filings to seek a stay and additional review. "They're filing for a stay to hopefully put a stop right now temporarily to it while they have the chance to have more input," the presenter said.
Committee members discussed immediate operational alternatives and revenue impacts. The county currently charges 10¢ per minute for phone calls under its contract and has kept rates intentionally low "not to profit off of the backs of the friends and family," the presenter said. Staff warned that if vendors cannot operate under the new rate framework, counties could face a service gap for telephone and video visitation and may need to consider in-person visitation alternatives or in-house solutions. The committee noted potential litigation and regulatory uncertainty and said staff will monitor the docket and vendor filings closely.
Officials also flagged that inmate-related telephone and video fees are part of the revenue mix used to offset inmate-services costs; a vendor exit or long-term rate cut could reduce those revenues and complicate the county’s short-term budget choices.
The committee agreed to monitor the FCC proceeding and asked staff to report back if vendor filings or court actions indicate an imminent loss of service or material revenue reductions.
