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New Funding Options for County Correctional and Rehabilitation Facilities

By Jason G. Semler, CPA, Partner, August 16, 2018

For most communities, a big part of the budget process is prioritizing where the money should go. Sadly, the funds available usually run out before the needs.

This year, legislation was amended that provides some help for counties funding expenses related to correctional and rehabilitation facilities. Under the legislation, county fiscal bodies are permitted to adopt an ordinance to impose (within the local income tax expenditure rate) a tax rate to assist with funding expenses related to correctional facilities and rehabilitation facilities in the county. The tax rate, which must be in increments of one-hundredth of one percent (0.01%) and may not exceed two-tenths of one percent (0.2%), may not be in effect for more than twenty (20) years.  In addition, the revenue generated by such a tax rate (1) must be distributed directly to the county before the remainder of the expenditure rate revenue is distributed; and (2) shall be maintained in a separate dedicated county fund and used by the county only for paying for correctional facilities and rehabilitation facilities expenses in the county. 

There are advantages and disadvantages to adopting this new legislation.  It is important to carefully evaluate the option and determine if it is best for your county. 

If you have any questions or need assistance with evaluating if this is the best option for you, please contact us at .(JavaScript must be enabled to view this email address).

Information in this article was believed current as of the date of publication. As you know, changes occur frequently. The information presented is of a general educational nature. Before applying to your specific circumstances, please contact us at


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