RD540 - FY 2017 Jail Cost Report Annual Jail Revenues And Expenditures Report (Including Canteen & Other Auxiliary Funds) – November 1, 2018


Executive Summary:

Total Operating Costs

The FY 2017 average operating cost per inmate per day increased to $85.83, up $0.66 from FY 2016. Jail operating costs per inmate day ranged from a low of $48.14 at the Middle River Regional Jail to a high of $229.56 at the Peumansend Creek Regional Jail.

The average daily population (ADP) for all jails increased by 1.3% in FY 2017 to 28,269. During FY 2017, 10.4 million inmate responsible days were incurred by Virginia jails.

Total expenditures (including capital costs) reported to house inmates in local and regional jails and jail farms in FY 2017 were $977.3 million. The Compensation Board provided funding of $352.0 million, with other state agencies providing an additional $9.3 million, primarily for capital costs. Virginia’s localities contributed $551.9 million to their jails and jail farm (including debt service obligations) and an additional $11.5 million to house inmates at other jurisdictions. The federal government provided funding of $27.4 million in direct grants and per diems. Other funding, such as inmate telephone commissions, medical co-payments, and investment income/earned interest, contributed $26.6 million. Work release funds generated by the inmates provided $7.2 million. Funding received for out of state inmates was negligible. For FY 2017, the twenty-three regional jails showed total revenues exceeded expenditures by $8.6 million, or $1.48 per inmate day.

The Commonwealth’s share of total expenditures decreased during FY 2017 at 37.2%. The Commonwealth’s share of total expenditures ranged from a low of 16.5% for the Fairfax County Jail to a high of 72.9% for the Henry County Jail.

Average operating costs per inmate day for the Northern region of Virginia continue to be the highest at $126.81. The other regions of the state incurred costs substantially lower. The Eastern region was the next highest at $82.21, followed by the Central region at $71.92 and the Western region at $64.90.

The locality’s share of total expenditures ranged from a low of 0.0% for the Northern Neck Regional Jail to a high of 78.9% for the Fairfax County Jail. The average share for localities was 56.5%.

Total Revenues

Commonwealth construction funding in FY 2017 for jail expansion totaled $8.5 million. The bulk of the funding activity was related to the Central Virginia Regional Jail ($8.2 million). The Pamunkey Regional Jail accounted for the remaining $0.3 million.

Forty jails received Federal revenue of various types, totaling $27.4 million ($24.9 million in federal per diems, $1.4 million in federal grants, and $1.1 million in other federal funds). The Northern Neck Regional Jail and Piedmont Regional Jail received 43.4% and 29.8%, respectively in funding from federal sources. The average federal inmate revenue per diem received by all Virginia jails was $67.78. The Commonwealth’s overhead recovery program returned $5.1 million to the general fund.

Sheriff Operated Local Jail Costs

During FY 2017 the local jails (36) incurred 4.6 million incarceration days, or 43.9% of the total for all Jails. Federal/Out of State inmate days accounted for 1.6% of the local jails’ total. Operating costs per day for housing inmates in Sheriff-run local jails were $106.02 (FY 2016, $109.14) and total costs were $111.62, or $18.58 per day higher than the average of $93.04 for all jails. On average, localities contributed 61.0% to their local jails’ expenditures, compared to the statewide average locality contribution of 56.5% for all jails.

Regional Jail Costs

Regional jails’ operating costs were $70.03, or $15.80 lower per day than the statewide average of $85.83. When debt service and long-term capital costs are included, the regional jails’ total costs were $13.91 per inmate day lower than the statewide average ($79.83 per inmate day compared to $93.74, respectively). Regional jails were responsible for 5.8 million incarceration days, or 55.7% of the state’s total inmate responsible days. With an ADP of 805 federal inmates, regional jails held 80.1% of the federal and out of state inmate population.

Jail Farm Costs

Through FY17, the state continued to partially fund the operation of one jail farm. The jail farm accounted for the remaining 0.4% of inmate responsible days. The jail farm average operating cost per inmate day was $69.63, or $16.20 a day lower than the state average of $85.83. The jail farm incurred no capital expenditures/debt service costs during the year. As a result, total expenditures per inmate day were $69.63. The jail farm did not hold any federal inmates nor receive any federal funding.

Additional Housing Costs Incurred at Other Localities

For localities without their own jail, the City of Harrisonburg paid the highest amount for housing inmates in facilities outside of their locality at $2.3 million, followed by the City of Fairfax at $1.5 million. For localities that operated their own jail, Culpeper County paid the highest amount for housing inmates in other facilities (due to capacity limitations) at $0.8 million, followed by Page County at $0.7 million.

Canteen Fund & Other Inmate related Accounts

A statement of revenues and expenses for inmate canteen accounts, telephone commission funds, inmate medical co-payment funds, and any other fees collected from inmates and investment/interest monies is required for inclusion in the Jail Cost Report.

Jails continue to employ three different operations and accounting approaches. Maintaining a canteen operation and fund continued to be the most used method. The funds are accounted for on a (1) Gross Basis - costs and revenues received for the items purchased were recorded; (2) Net Basis - a net commission was received for the sale of the item purchased; or (3) Canteen items directly purchased from a local vendor with no funds accounted for at Jail Level – the items purchased were charged directly to the inmates at cost. The individual jail’s operating policy had a direct impact on the related size and amount of inmate canteen activity. Whether a jail sells tobacco products through the canteen, and how often inmates are allowed to make purchases, both greatly affect the funds reported.

Similarly, the other inmate related accounts, including Telephone Commissions, Inmate Medical Co-payments, and Work Release and Investment/Interest revenue, were recorded using different accounting approaches. Most of the jails deposited the revenues into either an inmate canteen fund or with the locality/fiscal agent’s general fund. When these funds were maintained as separate accounts, their activities were reported by location in the Inmate Canteen and Other Auxiliary Funds Report found in Appendix E.

Summary of Presentation of Funds Expenses and Revenues

FUND NAME: INMATE CANTEEN
$REVENUES (In 000's): $20,696
$EXPENDITURES (In 000's): $17,017

FUND NAME: TELEPHONE
$REVENUES (In 000's): $13,422
$EXPENDITURES (In 000's): $5,309

FUND NAME: WORK RELEASE/OTHER
$REVENUES (In 000's): $11,601
$EXPENDITURES (In 000's): $6,168

FUND NAME: MEDICAL CO-PAYMENTS
$REVENUES (In 000's): $1,308
$EXPENDITURES (In 000's): $1,247

FUND NAME: INTEREST/INVEST MONIES
$REVENUES (In 000's): $21
$EXPENDITURES (In 000's): $3