Kane County’s Finance Committee unanimously recommended Wednesday that the full County Board decrease this year’s Sheriff’s Office budget by $225,000 to account for the revenue lost as of Jan. 15, when the U.S. Marshals Office removed 43 federal detainees from the Kane County Adult Justice Center.

Kane County Board is expected to vote on the issue at its Feb. 10 meeting.

“This is a work in progress,” Finance Committee Chairman John Hoscheit said. “Obviously, we’re open to communicate, and this is a fluid situation. The budget process is a teamwork process. We need to work together to solve this.”

According to the proposed ordinance and a summary report by Finance Director Joseph Onzick, the U.S. Marshals Office removed the 43 detainees after recently-elected Sheriff Don Kramer gave notice that he was terminating the housing agreement, which brings in about $2.5 million annually.

Onzick’s PowerPoint said Kramer sought to end the contract with the U.S. Marshals Service “without having the authority to do so and without the knowledge or consent of the County Board.”

At a Jan. 15 Judicial and Public Safety Committee meeting, Kramer told board members he wanted to remove the federal inmates because of safety and liability concerns.

Hoscheit said today (Wednesday, Jan. 28) that one of his concerns was that Kramer made the decision “without discussion with the Finance Committee or the finance director or the chair of the County Board.”

“Certainly, it was a surprise,” he said.

“How department heads and elected officials run their offices is their prerogative, but it’s really unprecedented that he would not advise us (of that action) … It’s our duty as a Finance Committee to keep the budgets balanced.”

Board member Cristina Castro said she wasn’t sure Kramer understood the ramifications of his decision or that the revenue shortfall is his office’s responsibility.

“He has every right to operate as he sees fit,” she said. “(But) I welcome a meeting with him. We don’t want him to fail. We want to all work through this problem to solve it. Going back to the (Judicial and Public Safety) committee, it seemed as if he didn’t understand that concept. It is a gigantic hole that we are in. I intend to see him next month to give an update of how many prisoners are in the facility. I’m hopeful he will bring that forward.”

Hoscheit said County Board members had reached out to Kramer repeatedly in the past several weeks, but “there were no meetings scheduled.” Kramer’s father, former Sheriff George Kramer, died Saturday, and visitation is set for Friday.

According to Onzick’s PowerPoint, the county receives more than $88 a day for each federal inmate. Multiplying that by 43 prisoners, the resulting revenue shortfall is about $115,523 per month or $1.386 million per year.

“What must be done? The answer is simple: If we cannot replace $1.4 million of lost revenue, then we will need to cut $1.4 million of expenditures ASAP,” Onzick said in his report.

If all federal inmates were to leave Kane County, the shortfall would be about $2.5 million a year.

Hoscheit said that revenue is valued by Kane County and coveted by other Illinois counties.

“My understanding is that other counties want that benefit, and my guess is that the detainees are now residing at counties (whose officials) want the revenue stream,” he said.

Hoscheit said he felt it was important for the Finance Committee and County Board to make the budget changes during this fiscal year, which is the board’s right by state statute.

“If we didn’t act on this until the end of the year, I don’t think it would be fair to the board or to the sheriff, either,” he said. “It’s appropriate to put the office on notice that we’ll make that adjustment if the revenue stream is not there.”

 

Onzick’s PowerPoint Presentation

Here are some of the talking points and rationale from Finance Director Joseph Onzick’s presentation:

(A) Sheriff Terminated Contract with U.S. Marshals Service Without Having the Authority to Do So and Without the Knowledge or Consent of the County Board

(B) 43 Federal Detainees Were Removed by U.S. Marshals Service from Kane County Adult Justice Center in Response to Sheriff’s Notice of Contract Termination

(C) $1,386,276 revenue from 43 U.S. Marshals prisoners is equivalent to:

• Salary & benefits of 13.6 correctional officers
• Funding to Operate 1 Jail Pod (64 Prisoner Capacity)
• 9.4% of the FY15 Sheriff’s Corrections Budget
• 5.3% of the FY15 Sheriff’s Office Total Budget
• 4.2% Property Tax Increase Avoided

(D) $2,500,000 total budget for U.S. Marshals program is equivalent to:

• Salary & benefits of 24.4 correctional officers
• Funding to Operate 2 Jail Pods (128 Prisoner Capacity)
• 16.9% of FY15 Sheriff’s Corrections Budget
• 9.5% of FY15 Sheriff’s Office Total Budget
• 7.6% Property Tax Increase Avoided

(E) Forfeited U.S. Marshals Service Revenue Will Result in Substantially Less Than Projected Revenue for FY15

• “Whereas this removal of 43 federal detainees represents a forfeiture of $115,523 of reimbursement revenue per month from the US Marshals Service;”
• “Whereas in the opinion of the Kane County Board this forfeiture of $115,523 of revenue per month when annualized totals an amount substantially less than that projected at the time of adoption of the 2015 Fiscal Year budget;”

(F) What must be done? The answer is simple: If we cannot replace $1.4 million of lost revenue, then we will need to cut $1.4 million of expenditures ASAP

(G) State Statute 55 ILCS 5/6-1002 Authorizes County to Cut Budget

• “If the county board determines by a 2/3 vote of all members constituting such board, that revenue received, or to be received, by the county during the then present fiscal year totals an amount substantially less than that projected at the time of adoption of the annual budget for that fiscal year, such board, by like vote, may adopt an amended budget for the remainder of the then present fiscal year.”

(H) Since this revenue was voluntarily forfeited by the Sheriff, it should be balanced by an equivalent cut to the Sheriff’s Expenditure budget

(I) Initial Budget Cut of $225,000

• $225,000 equals amount of “Adult Prisoner Board & Care” line item that was added to Sheriff’s Office Budget in 2014 for primary purpose of maximizing space for federal detainees. Therefore, if this program is terminated, it is logical that this amount should be the first to be removed.

(J) $225,000 is a Reasonable Initial Cut from Other Perspectives as Well:

• $225,000 is approximately equal to 2 month’s worth of forfeited US Marshals Service revenue for housing federal detainees
• $225,000 is approximately equal to 10% of the total FY15 budget for US Marshals Service revenue

(K) The Sheriff May Specify Which Line Item(s) to Cut Within the Sheriff’s Office Budget

(L) Sheriff is Directed to Resume Monthly Reporting of US Marshals Service Revenue and Out of County Housing Costs

Text of Proposed Ordinance

AMENDING ANNUAL APPROPRIATION ORDINANCE IN RESPONSE TO FORFEITED US MARSHALS SERVICE REVENUE

WHEREAS, on December 15, 2014 the Kane County Sheriff notified the US Marshals Service that the agreement for housing federal detainees in the Kane County Sheriff’s Department – Adult Justice Center was being terminated; and

WHEREAS, on January 15, 2015 in response to this notice of termination the US Marshals Service removed 43 federal detainees from the Kane County Sheriff’s Department – Adult Justice Center; and

WHEREAS, this removal of 43 federal detainees represents a forfeiture of $115,523 of reimbursement revenue per month from the US Marshals Service; and

WHEREAS, in the opinion of the Kane County Board this forfeiture of $115,523 of revenue per month when annualized totals an amount substantially less than that projected at the time of adoption of the 2015 Fiscal Year budget; and

WHEREAS, 55 ILCS 5/6-1002 provides “At any point following the adoption of the annual budget, if the county board determines by a 2/3 vote of all members constituting such board, that revenue received, or to be received, by the county during the then present fiscal year totals an amount substantially less than that projected at the time of adoption of the annual budget for that fiscal year, such board, by like vote, may adopt an amended budget for the remainder of the then present fiscal year. The authority of the county board to amend the annual appropriation ordinance at any point during the fiscal year shall be the same as its authority to determine and adopt the original annual budget”.

WHEREAS, in the opinion of the Kane County Board such a voluntary forfeiture of revenue by an elected official should be balanced by an equal cut to the expenditure budget within the elected official’s office; and

WHEREAS, the “Adult Prisoner Board & Care” budget line item of $225,000 was the most recent addition to the Sheriff’s Office expenditure budget in direct response to the growth of the reimbursement revenue from the US Marshals Service and in good faith that the Sheriff would use this budget to maximize the space for housing US Marshals Service federal detainees; and

NOW, THEREFORE, BE IT RESOLVED by the Kane County Board that the following budget adjustment is hereby authorized for the following line items in the Sheriff’s Office General Fund budget:

• 001.380.000.37500 Board & Care Reimbursement Revenue -$225,000
• 001.380.383.50080 Adult Prisoner Board & Care -$225,000

Or a reduction totaling $225,000 to any other expense line item(s) within the Sheriff’s Office General Fund budget designated by the Sheriff and communicated in writing to the Executive Director of Finance of Kane County within 5 business days of the passage of this ordinance.

NOW, THEREFORE, BE IT FURTHER RESOLVED by the Kane County Board that the Sheriff is to provide a monthly report to the Judiciary & Public Safety Committee of “US Marshals Revenue” and “Out of County Housing Costs” similar to that included on the December 12, 2014 agenda of the Judiciary & Public Safety Committee. For each month of the Fiscal Year, the “US Marshals Revenue” report is to include the number of federal detainees, the number of days those federal detainees were housed and the revenue generated from housing those detainees for that number of days. For each month of the Fiscal Year, the “Out of County Housing Costs” report is to include the number of detainees housed outside of the County, the number of days those detainees were housed outside of the County, and the cost of housing those detainees for that number of days outside of the County. Upon reviewing the reimbursement revenue generated by the US Marshals Service for housing federal detainees, the Finance Committee will determine whether further budget adjustments to the Sheriff’s Office budget are necessary on a month-by-month basis.

Passed by the Kane County Board on February 10, 2015