Black Hawk County budget presenters flag jail revenue drops and $85,000 subsidy need for security fund

Black Hawk County supervisors heard detailed presentations on the proposed fiscal 2027 budget on Jan. 13, when law‑enforcement and finance officials warned of falling revenues and rising contract costs that could require a property‑tax subsidy to maintain current security services.

The county’s sheriff (name not provided in the transcript) said revenue streams tied to the jail are under pressure. Room‑and‑board revenue — which helped fund operations — has fallen from roughly $350,000 a few years ago to a projected $175,000 for FY27, the sheriff said, and the commissary/communications revenue stream that contributed about $300,000 is uncertain because of pending federal regulatory (FCC) actions. He also said a correction was needed to the jail food contract after prior budgeting errors and cited significant costs for housing some juveniles out of county, including examples of $250–$402 per day for placement services.

Michelle (county finance staff) and other budget presenters told the board the county’s 60/40 security fund — the account that covers a Per Mar security contract and one courthouse deputy on the 60% side — is now projected to require about an $85,000 subsidy from property taxes for FY27 to maintain current service levels. “If we want to keep the same level of service, we’re going to have to start putting that with property taxes,” finance staff said during the presentation.

Finance staff emphasized the 40% side of the fund has reserves (projected $220,000) that can cover a shortfall of roughly $21,000 in the near term, but that relying on fund balance is not sustainable if revenue declines continue. Presenters said some expense increases — including a $100,000 jump in a contracted medical/NAF‑care line and corrections to underbudgeted jail food costs — are driving the sheriff’s operating request higher for FY27.

County staff described steps taken to limit budget impacts, such as trimming nonessential modules from training software and identifying vendor changes that yield savings. They also noted uncertainties that could materially affect the outlook: pending FCC decisions affecting commissary commissions and potential changes in Medicaid that could shift general‑assistance or hospitalization costs.

The board did not take a final vote on the overall budget package at the Jan. 13 meeting; staff said they will continue presentations next week and then assemble the full fund‑level view for the board. The most immediate next procedural step recorded was staff offering more detailed 60/40 fund breakdowns and returning with contract language and options to cover the projected subsidy.