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Committee presses TDOC on contract transfers, jail reimbursements and Shelby County dispute
Summary
Lawmakers asked TDOC for detail about a $20 million transfer into medical-contract funding, the department’s projection requests for the state prosecutions reimbursement account, and ongoing disputes with Shelby County over housing agreements for state inmates.
During extended questioning, committee members asked TDOC staff to explain recent internal transfers and larger contract liabilities. TDOC deputy budget director Landon Kinderdine said the agency reallocated recurring funds to cover increased costs in its inmate medical and behavioral-health contracts and that some funding came from the state prosecutions account when it showed a surplus during budget work in December 2024.
Members pointed to numbers in committee documents: testimony cited that the medical-contract maximum liability was "over 1,000,000,000" and behavioral-health liability "over 174,000,000" as figures in Edison procurement records; TDOC staff explained the department had transferred roughly $37,000,000 in recurring funds to cover contract renewals, with $20,000,000 drawn from the state prosecutions account. Staff said they requested an additional $13,000,000 for fiscal 2027 for the state-prosecutions account in their governor's request but that that request had not been recommended in the budget.
Members also probed TDOC’s relationship with Shelby County after the county declined to sign a renewed contract to house state inmates. TDOC officials said the county has refused to sign a new agreement and has therefore reduced its billing; TDOC counsel noted active litigation between the parties and deferred detailed commentary on motivations to the mayor's office and the pending case.
Committee members asked TDOC to provide reconciliations showing monthly payments, billings, and how the department expects to cover reimbursements if supplemental funding is not approved.
