Maricopa County Detention Billing Rates

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wwwww.maricopa.gov

Maricopa County

Lee Ann Bohn
Assistant County Manager

To: Maricopa County Detention Billing Agencies
From: Lee Ann Bohn, Assistant County hones
Date: January 26, 2022

Subject: Final Jail Per Diem Billing Rates for FY¥2023

The purpose of this memorandum is to provide the final jail per diem billing rates for
FY2023. As communicated in the preliminary memos dated December 1, 2021, and
January 7, 2022, the County is mindful of the impact on city and town budgets due to
the fluctuations in jail per diem billing rates. County leadership explored options to
identify a solution that continues to allow the County to recoup cost associated with
municipal detainees while also offering some level of predictability to cities and towns
that use our jail system. As we analyzed the data related to the jail per diem billing
rates, we determined the most influential factor in rate increases is units of service
(bookings or man days). As the rates are derived by dividing budgeted costs by the
units of service, any change in these factors has a significant impact on the booking
and housing rates. Thus, when there are significant fluctuations in bookings and man
days year-over-year, the jail per diem billing rates have resulting fluctuations.

To account for abnormal fluctuations in utilization and to smooth out year-over-year
changes in bookings and man days, the County will employ a five-year utilization
average to calculate the FY2023 jail per diem billing rates. Updating the jail rate
methodology in this manner will help minimize the impact of significant changes in
utilization and help stabilize the budgetary impacts to cities and towns while still
allowing the County to recoup costs.

The following table illustrates the final Jail Per Diem Rates that will be effective July 1,
2022.

Percent
Jail Per Diem Rates | FY2023 Rate FY2022 Rate Difference | Change
Gross Housing Rate $ 114,02 $ 134.20 $ (20.18) -15.0%
CARES Act Credit $ (38.76) $ 38.76 -100,0%
Net Housing Rate $ 114.02, $ 95.44 $ 18.58 19.5%
Gross Booking Rate $ 611.84 $ (63.39) -10.4%
CARES Act Credit $ (169.48) $ 169.48 -100:0%
Net Booking Rate $ 548.45 $ 442.36 $ 106.09 24.0%

In FY 2022, the County reduced the Housing and Booking rates to account for funding
from the Coronavirus Aid, Relief, and Economic Security (CARES) Act utilized to offset
costs associated with jail operations. As CARES Act funding was not utilized for costs
related to the FY2023 rate calculation, a similar credit does not apply.

January 26, 2022
Final Jail Per Diem Billing Rates for FY2023
Page 2 of 3

The FY2023 jail per diem billing 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 billing rates.

The following provides detail as to the primary impacts on the FY2023 jail per diem billing rates.

The FY2023 jail per diem billing rates consist of housing and booking rates based on the Maricopa
County Sheriff's Office (MCSO) and Correctional Health Services (CHS) FY2022 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. Budgeted costs for the development of the
FY2023 rate totaled approximately $333.8 million, an increase of $1.7 million or 0.5% from the prior
year. Approximately 97% of the budgeted costs are absorbed by Maricopa County while 3% is
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 $2.6 million
or 1.2% and $2.9 million or 9.0%, respectively. CHS had a decrease in housing costs of $5.7
million or 8.9% and an increase in booking costs of $1.9 million or 17.0%, respectively. The
increased costs can primarily be attributed to an increase In budgeted personnel costs for both
MCSO and GHS. Specifically, budgeted personnel costs increased for those eligible for pay-for-
performance salary adjustments, market adjustments, and an increase in benefits costs.

In addition to the increased costs noted for FY2023 rates, both the FY2022 and FY2023 jail per
diem billing rates include budgeted costs for the Intake Transfer and Release facility that were new
for costing models beginning in FY2022. In November 2020, the Intake Transfer and Release
facility opened, which resulted in an increase in budgeted costs due to additional Detention Officer
staffing to support a direct supervision model. Further, budgeted staff vacancies were reduced by
4% in FY2022 from FY2021, resulting in an overall increase in budgeted costs for rate models in
FY2022 forward.

As noted above, a significant contributor to the annual change in booking and housing rates is the
annual change 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 change in these factors
impacts the booking and housing rates. The number of bookings increased from 70,241 to 75,060
or 6.9%. In addition, custody man days decreased from 2,226,799 to 2,143,650 or (3.7%).
Although the number of bookings and man days did not significantly change from FY2022 to
FY2023, both bookings and man days have significantly decreased since FY2021 with decreases
of (21,004) or (21.9%) and (710,291) or (24.9%), respectively. As the utilization (bookings or man
days) drives the total cost per unit (i.e., bookings or man days), a decrease in the utilization results
in the total cost being spread over fewer units. These changes are believed to be a result of
several factors including the impact of the COVID-19 pandemic on the jail population. To account
for abnormal fluctuations in utilization and to smooth out year-over-year changes in bookings and
man days, the County used a five-year utilization average to calculate the FY2023 jail per diem
billing rates.

January 26, 2022
Final Jail Per Diem Billing Rates for FY2023
Page 3 of 3

Questions regarding Detention Facilities, please contact Jim Prindiville, MCSO Chief Financial
Officer, at (602) 876-1674 or via email to: J_Prindiville@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.gov.

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 contact Bridget Harper, Office of Budget and Finance, Deputy
Finance Director, at (602) 506-6410 or via email to: Bridget. Harper@Maricopa.gov.

cc: City/Town Manager