FY22 Final Jail Per Diem Billing Rates

Maricopa County

Lee Ann Bohn
Assistant County Manager

WwwWw.maricopa.gov

301 West Jefferson Street, Suite 960
Phoenix, AZ, 85003-2143

Phone: 602-372-7020

Fax: 602-506-3436
www.maricopa.gov

To: Maricopa County Detention Billing Agencies
From: Lee Ann Bohn, Assistant County Manager
Date: February 1, 2021

Subject: Final Jail Per Diem Billing Rates for FY2022

The purpose of this memorandum is to provide the final Jail Per Diem Billing Rates for
FY2022. The following table illustrates the final Jail Per Diem Rates that will be effective
July 1, 2021.

Jail Per Diem FY 2022 CARES FY 2022 FY 2021 Percent

Rates Gross Rate | Act Credit | Net Rate Rate Difference | Change
Housing Rates $134.20 ($38.76) $95.44 | $102.55 ($7.11) (6.9%)
Booking Rates $611.84 ($169.48) $442.36 | $396.98 $45.38 11.4%

The FY2022 Jail Per Diem Rates were developed as part of a comprehensive jail
per diem rate study performed by MGT Consulting (MGT). MGT is a recognized
expert for preparing cost allocation models and has been used in prior years to
review the methodology and rate development used in calculating the Jail Per Diem
rates.

The FY2022 Jail Per Diem rates consist of housing and booking rates based on the
Maricopa County Sheriff's Office (MCSO) and Correctional Health Services (CHS)
FY2021 budgeted direct and indirect costs and the Central Service Cost Allocation
(CSCA) charges, which include technology infrastructure, depreciation, facility
maintenance, and other allocated costs. The rates are then derived by dividing the
budgeted costs by the units of service, man days or bookings for the housing rate
and booking rate, respectively.

For the FY2022 rates, Maricopa County provided credits to both the housing and
booking rates to account for funding received as part of the Coronavirus Aid, Relief,
and Economic Security (CARES) Act for necessary expenditures incurred due to the
public health emergency with respect to COVID-19. Maricopa County utilized $95.4
million in CARES Act funding for salaries, benefits and other payroll costs related to
MCSO and CHS detention related activities. As these costs represent
reimbursement of budgeted expenditures used as part of the jail rate calculations, a
credit to the rates was calculated to pass the CARES Act assistance onto the utilizing
jurisdictions. The table above demonstrates the base rates as calculated by MGT
and the credit applied as a result of the CARES Act to derive the net FY2022 Jail
Per Diem rates.

Budgeted costs for the development of the FY2022 rate totaled approximately
$332.1 million, an increase of $11.1 million or 3.5% from the prior year.
Approximately 97% of these costs are absorbed by Maricopa County while 3% is

Maricopa County

Final Jail Per Diem Rates FY2022
February 1, 2021

Page 2

estimated to be recovered through Jail Per Diem charges to the utilizing jurisdictions. Of the
budgeted costs, MCSO had an increase in housing costs and booking costs of $5.2 million or
2.4% and $3.9 million or 13.7%, respectively. CHS had an increase in housing costs and
booking costs of $1.0 million or 1.6% and $988.7 thousand or 9.8%, respectively. The following
provides additional explanation of these changes:

e Retirement benefits costs increased as a result of a 3.9% increase in the employer
contribution rate for the Corrections Officers Retirement Plan.

e Personnel costs increased as a result of reduced vacancies and additional Detention
Officer staffing to support a direct supervision model for the Intake Transfer and Release
facility, which opened in November 2020.

e Budgeted personnel costs increased for those eligible for annual pay-for-performance
salary adjustments.

In addition, a significant contributor to the increase in the FY2022 gross booking and housing
rates is the year-over-year decline in bookings and man days (housing days). As the rates are
derived by dividing budgeted costs by the units of service (bookings or man days), any reduction
in these factors contributes to a higher rate. The number of bookings decreased from 96,064 to
70,241 or (26.9%). In addition, custody man days also decreased from 2,853,941 to 2,226,799
or (21.97%). These decreases are believed to be a result of several factors including the impact
of the COVID-19 pandemic on the jail population. Although the decline in bookings and man
days resulted in increases in the rates, Maricopa County passed on the CARES Act credits to
the utilizing jurisdictions to help minimize the impact that decreased utilization had on the FY2022
rates.

Questions regarding Detention Facilities, please contact Dan Campion, MCSO Budget and Finance
Administrator, at (602) 876-3241 or via email to: D Campion@MCSO.maricopa.gov.

Questions regarding Correctional Health Services, please contact Cody Johnson, Finance
Manager, at (602) 506-1070 or via email to: Cody.Johnson@Maricopa.qov.

Maricopa County will publish the final jail per diem rates at the following location:
https:/Awww.maricopa.gov/5167/Financial-Reports.

If you have any questions, please send an email to Finance Internet Feedback:
FIN.FinancelnternetFeedback@maricopa.gov

cc: City/Town Manager