Department
of
Audits
and
Accounts
270 Washington Street, S.W., Suite 4-114
Atlanta, Georgia 30334-8400
270 Washington Street, S.W., Suite 4-114
Atlanta, Georgia 30334-8400
Russell W.
Hinton
State Auditor
(404) 656-2174
State Auditor
(404) 656-2174
February
24, 2010
Honorable Jack Hill,
Chairman
Senate Appropriations Committee
State Capitol, Room 234
Atlanta, Georgia 30334
SUBJECT: Fiscal Note
Senate Appropriations Committee
State Capitol, Room 234
Atlanta, Georgia 30334
SUBJECT: Fiscal Note
Senate
Bill 385 (LC 28 5015)
Dear
Chairman Hill:
This
bill would increase the state’s daily reimbursement rate to counties for
housing state felony inmates, depending on whether counties participated in
certain federal initiatives. Counties demonstrating constant use of the federal
Department of Homeland Security’s Secure Communities initiative would
receive 110% of the usual reimbursement rate. Counties that have a memorandum of
agreement with the federal government under Section 287(g) of the Immigration
and Nationality Act to detain immigration offenders would receive 120% of the
usual reimbursement rate. Currently, the state Department of Correction’s
(DOC’s) reimbursement rate to counties is $22 per day. Consequently, the
increases proposed in the bill would increase this rate to $24.20 (110% of the
usual rate) and $26.40 (120% of the usual rate).
Letter
to Chairman Hill
Senate
Bill 385 (LC 28 5015)
February 24, 2010
Page 2
February 24, 2010
Page 2
The
bill’s immediate fiscal impact to the state could total approximately
$916,000 annually. This is based on the increased amount of reimbursement that
would be paid annually to the six counties that currently participate in either
of the federal initiatives. Of these six counties, four would qualify to receive
the 120% proposed rate while two would qualify for the 110% proposed rate.
Multiplying each of these county’s projected annual state inmate days for
state fiscal year (FY) 2010 times the applicable reimbursement increase yields
the total $916,000 estimated impact.
The
bill’s potential fiscal impact to the state could total nearly $5 million
annually if all counties housing applicable state inmates eventually qualify for
the proposed 120% reimbursement rate. This estimate is based upon multiplying
the statewide FY 2010 projected annual state inmate days applicable to county
reimbursement times the higher 120% proposed rate. Although all counties housing
applicable state inmates may not qualify for the increased reimbursement rates,
the DOC indicates that it is reasonable to assume that at least the counties
that hold the majority of state inmates would seek to qualify for the higher
reimbursement increase.
It
should be noted that both estimates above were calculated using the assumption
that the increased reimbursement would apply to the entire applicable state
inmate population housed at counties, not just to state inmates who, for
example, were immigration offenders at these counties. This assumption was used
as the bill does not restrict the increases to any specific subset of the
population of state inmates housed at counties.
Respectfully,
/s/ Russell W.
Hinton
State Auditor
/s/ Trey Childress, Director
Office of Planning and Budget
State Auditor
/s/ Trey Childress, Director
Office of Planning and Budget