JAIL PER DIEM BILLING RATES FOR 2017-2018.PDF

Maricopa County
Office of Assistant County Manager and Department of Finance
Shelby L.
Scharbach
CPA, CGFM To: Maricopa County Cities and Towns
Assistant County From: Shelby L. Scharbach, Assistant County Manager and CFO
Manager and Lee Ann Bohn, Chief of Administration, MCSO
Chief Financial Date: February 1, 2017
Officer Subject: Final Jail Per Diem Billing Rates for FY 2017-18
301 West Jefferson Street _____________________________________________________________
Suite 960
The purpose of this memorandum is to provide an update on the status of the
Phoenix, AZ 85003-2143
Jail Per Diem Billing Rates for FY 2017-18. The FY 2017-18 housing and
booking rates remain unchanged from the preliminary housing and booking
rates notification that was provided on December 1, 2016. The following table
illustrates the Final Jail Per Diem Rates that will be effective July 1, 2017.
Jail Per Diem
FY 2017-18 FY 2016-17 Difference Percent
Rates
Housing Rate $ 101.72 $ 90.37 $ 11.35 12.6%
Booking Rate $ 325.65 $ 306.84 $ 18.81 6.1%
Sheriff Penzone has committed to reviewing jail operations and identifying
efficiencies in the coming months, which may result in reduced per diem rates
as well as overall spending.
The allocation methodology for the FY 2017-18 rate calculation remains
unchanged from the comprehensive jail per diem rate study that was
performed by MGT of America, Inc. (MGT). MGT is the consulting company
that extensively reviewed the methodology used to provide the jail rates for
the FY 2012-13 and FY 2013-14 budget years which are published at the
following link: http://www.maricopa.gov/Finance/perDiemPub.aspx
The FY 2017-18 booking and housing per diem rates are based on the FY
2016-17 budgeted direct and indirect costs for the Maricopa County Sheriff’s
Office (MCSO) and Correctional Health Services (CHS). MCSO and CHS
budgeted costs used to derive the housing and booking rates increased by a
net of $10.6 million, or 3.6%. MCSO and CHS had an increase in housing
costs of $8.1 million, and $2.9 million, respectively, while combined booking
costs decreased $451 thousand.

Maricopa County
Cities and Towns
February 1, 2017
Page 2
The largest contributor to the increase in the booking rate is from a reduction
in the number of bookings from 101,348 to 94,110, a decrease of (7.1%).
The number of bookings is used as the denominator in calculating the rate,
resulting in an increase in the booking rate as the number of bookings
decrease. Custody mandays (housing days) has also decreased from
3,012,260 to 2,788,904, a decrease of (7.4%).
Cost increases are due to the following:
 The County authorized a 2.5% pay for performance increase plus the
additional cost for related variable benefits
 An increase of 13.64% in employee fixed benefits which are primarily
healthcare related
 An increase of 13.10% in central government charges which include
major maintenance, building depreciation, and central service costs
 Healthcare staffing increased 3%; however, healthcare service costs
remained level as compared to the prior year
 Pharmacy cost increases of 12% due to rising cost of pharmaceuticals
Questions regarding Detention Facilities can be addressed to Dan Campion,
Budget and Finance Administrator at D_Campion@MCSO.Maricopa.gov or
(602) 876-3241.
Questions regarding Correctional Health Services can be addressed to Melba
Davidson at Davidsonm@mail.Maricopa.gov or (602) 876-7117.
Attached to this memo is the Detention Services and Related Costs document
which provides additional information on the billing process. Copies of the rate
memos and this document are published at the following location:
http://www.maricopa.gov/Finance/perdiempub.aspx
If you have any questions, please contact Shelby Scharbach at (602) 506-3561
or (sscharba@mail.maricopa.gov) or Lee Ann Bohn at (602) 876-7891
(l_bohn@mcso.maricopa.gov).
c: City/Town Manager