Floyd County Council approves new jail tax

By a 4-3 vote the council approved a new Correctional Rehabilitation Facilities ordinance that calls for a .002 percent payroll tax on Floyd County residents. The new tax will generate around $4.5 million a year to be used on jail expenses including staffing and construction costs associated with the $15 million renovation plan that was recently approved.

"It's hard to do, but it's the right thing to do," council Vice President Denise Konkle said after the vote. Konkle, Lana Aebersold, Dale Bagshaw and Leslie Knable voted in favor of the tax, while Brad Striegel, Tom Pickett and Cam Wright voted against. 

Wright voted for the measure during the first reading Tuesday but said he misunderstood what the council was voting for. He said he was in favor of decreasing the County Adjusted Gross Income Tax (CAGIT) rate by the same .002 rate so taxpayers would not see an increase. His motion received a second, but failed by a 6-1 margin prior to the second reading and passing of the new tax. Reducing CAGIT would have put too much of a strain on other entities, including the school corporation, library, fire departments and townships that rely on that revenue, other council members said.

For residents making $50,000 a year, the new jail payroll tax will amount to around $100 a year, according to Auditor Scott Clark. The tax will kick in Oct. 1, 2018, and is set to expire in 20 years.

Last month the council passed a jail renovation plan that is suppose to address overcrowding issues as well as make other repairs. Around 110 additional beds will be added when an outside courtyard is renovated and turned into a new jail pod. Ten additional corrections officers will be hired soon in order to handle the expanded space.

The $4.5 million raised each year with the new tax can go toward bond payment on the loan or be used on others expenses like salaries for correctional officers. Konkle said that is key to get the budget back in order so the council doesn't have to rely each year on revenue from the sale of Floyd Memorial Hospital to Baptist Health.

"There are certain things you have to do when you operate a jail that we have no control over," Bagshaw said. "The jail has to meet certain federal guidelines and I hope this brings us in compliance."

Striegel, the council president, was not in favor of the renovation plan, which is why he said he voted against the tax increase. He agreed the jail needs some improvements but thinks this plan doesn't address long-term issues.

"Does something need to be done ... sure. But I didn't support this particular fix so that is why I did not support a tax for it," he said. 

Striegel said the $4.5 million is going to help the budget, but other cuts will have to be made since the deficit could increase to $6 million next year. Konkle said those cuts will be made during the 2019 budget process, which has started.

"Do we need to cut some expenses, absolutely," Konkle said. "We are going to work hard at that. We have already started the process."

No one from the public attended the second reading and final vote for the tax Wednesday, although Striegel said he heard from some constituents who are against it.

But Bagshaw said the costs to run government have increased like everything else over the past two decades, and while school taxes have increased during that time, county taxes have not.

"This can help pay the bond and other costs for the jail," he said. "That is why we did it."