Page 1 of 4 LRC 2023-BR1104-SB162 GA
COMMONWEALTH OF KENTUCKY FISCAL NOTE STATEMENT
LEGISLATIVE RESEARCH COMMISSION
2023 REGULAR SESSION
MEASURE
2023 BR NUMBER 1104 SENATE BILL NUMBER 162 GA
TITLE AN ACT relating to juvenile justice.
SPONSOR Senator Danny Carroll
FISCAL SUMMARY
STATE FISCAL IMPACT: YES NO UNCERTAIN
OTHER FISCAL STATEMENT (S) THAT MAY APPLY: ACTUARIAL ANALYSIS
LOCAL MANDATE CORRECTIONS IMPACT HEALTH BENEFIT MANDA TE
APPROPRIATION UNIT(S) IMPACTED: Department of Juvenile Justice; Department of Corrections;
Department for Medicaid Services; Legislative Research Commission
FUND(S) IMPACTED: GENERAL ROAD FEDERAL RESTRICTED Kentucky
Permanent Pension Fund
FISCAL ESTIMATES 2022-2023 2023-2024 ANNUAL IMPACT AT
FULL
IMPLEMENTATION
REVENUES
EXPENDITURES No less than
$7,250,000
($38,000,000) KPPF
No less than
$47,900,000 GF
No less than $47,900,000
NET EFFECT (No less than
$7,250,000)
(No less than
$9,900,000)
(No less than $47,900,000)
( ) indicates a decrease/negative
PURPOSE OF MEASURE: The measure includes provisions for reorganization of the
Department of Juvenile Justice (DJJ) and revises the duties and organizations of the Juvenile
Justice Oversight Council. New requirements are established for the DJJ and the Justice and
Public Safety Cabinet (JPSC) for the operation of the statewide juvenile detention program
including those related to mental health services for youth in custody, emergency response
equipment and training, data tracking systems, implementation of a regional model for juvenile
detention, retaining retired youth workers and allowing those recently resigned to return at prior
classifications, maintaining a management training program, and implementing a risk-based
juvenile transfer plan.
Various appropriations are made to support costs related to salary increases, additional staff,
facility security upgrades, data management, youth diversion programming, and design costs for
a regional model of detention.
The measure also requires the Department for Medicaid Services (DMS) to submit an
amendment to the Section 1115 demonstration waiver to provide Medicaid coverage for youth in
pre- and post-adjudication detention facilities. Page 2 of 4 LRC 2023-BR1104-SB162 GA
FISCAL EXPLANATION : The fiscal impact of SB 162 GA is at least $7.25 million in FY
2023 for costs related to facility security upgrades, youth diversionary programming, and design
costs for a regional model of detention. The fiscal impact in FY 2024 is at least $9.9 million in
General Fund for staffing and informational technology costs. An additional $38 million in FY
2024 for salary increases is transferred from funds appropriated to the Kentucky Permanent
Pension Fund in HB 1 of the 2022 Regular Session. In future years, the recurring portion of
these costs will need to be supported by additional General Fund appropriations totaling at least
$47.9 million. Sections 7 through 12 specify these appropriations.
There are additional, indeterminable impacts to DJJ related to requirements established in
Sections 4 and 5 of the bill. Precise estimates and dates of implementation for all requirements
are indeterminable with information currently available, but are likely significant. Specifics by
bill section are as follows:
Section 1 reorganizes DJJ to include an Office of Detention with associated Divisions of
Transportation and Compliance. Costs associated with this reorganization are expected to be
minimal.
Section 2 requires JPSC to maintain a data tracking system for DJJ. JPSC has estimated the cost
of such a youth offender management system to be $142,000 annually. These costs are addressed
by the appropriation in Section 10 of the bill.
Section 3 revises the membership and duties of the Juvenile Justice Oversight Council and
transfers its administration from JPSC the Legislative Research Commission (LRC). Costs
associated with these changes are expected to be minimal.
Section 4 requires DJJ to contract for institutional treatment for youth with severe emotional
disturbance or mental illness and to provide youth in DJJ’s custody, both pre-adjudicated and
post-adjudicated, access to mental health professionals with privileged communications. The
cost of establishing an institutional treatment contract is unknown currently although JPSC has
indicated an institutional contract will be substantial in cost and likely difficult to execute given
the acute health care needs of youth that would need institutional care. DJJ does provide formal,
evidence-based mental health services to post-adjudicated youth, extending similar services to
pre-adjudicated youth will impose additional unknown costs depending on the number of youths
detained and choosing to access such services.
Section 4 also requires DJJ, for juvenile detention and youth development centers, to conduct
monthly emergency response training, to provide and certify staff in the use of emergency
response equipment, to establish emergency response teams at each facility, to enter into MOUs
with local law enforcement for emergency response, and to equip each facility with an alarm
linked to the local dispatch center. The cabinet is currently implementing emergency response
training, the purchase of non-lethal defensive equipment for select staff, and secure threat group
training at high-security facilities using existing resources and staff from JPSC and DOC. In
future years, JPSC has indicated costs for continued training and equipping of select staff can be
absorbed by the annual operating budget.
Page 3 of 4 LRC 2023-BR1104-SB162 GA
Section 6 requires JPSC to implement a regional model of juvenile detention that also segregates
males and females and violent and nonviolent offenders. DJJ is currently assigning youths to
detention facilities based on gender and severity of offense. JPSC has estimated an additional
$12.9 million in staffing costs and $5.8 million in transportation costs in FY 2024 are needed to
maintain this approach, as well as $26.3 million in various capital construction costs in FY 2023.
Transitioning to a regional model while also segregating based on gender and offense level may
impose additional staffing and facilities costs. These costs are currently unknown, but JPSC has
indicated costs would be substantial, particularly with regard to facilities redesign.
Section 6 requires JPSC to implement a uniform requirement for correctional officers in DJJ,
implement a retired youth worker program to supplement staffing, allow those staff recently
resigned to return at prior classifications, maintain a management training program, and
implement a risk-based juvenile transfer plan. Any additional costs with regard to these
provisions are likely limited.
Section 7 requires DMS to submit an amendment to the Section 1115 demonstration waiver to
provide Medicaid coverage for medical and behavioral health care for Medicaid-eligible children
in pre- and post-adjudication detention facilities. DMS estimates, if approved, an annual fiscal
impact of approximately $1.8 million in total funds for providing this coverage, $540,000 of
which would be the state’s General Fund share. This estimate could change based on the number
of youths determined eligible. Obtaining Medicaid coverage for eligible youth may also offset
current expenditures DJJ makes for medical care of youth in custody.
Section 8 transfers $38 million in FY 2024 from funds appropriated to the Kentucky Permanent
Pension Fund in HB1 of the 2022 Regular Session to DJJ and DOC to support salary increases.
Section 9 appropriates $9.7 million in General Fund in FY 2024 to DJJ for an additional 146
staff positions.
Section10 appropriates $200,000 in General Fund in FY 2024 to DJJ for a youth offender
management system.
Section 11 appropriates $4 million in General Fund in FY 2023 to DJJ for facility security
upgrades.
Section 12 appropriates $1.5 million in General Fund in FY 2023 to DJJ for the establishment of
a diversionary program to identify and provide treatment to youth identified as suffering from
severe mental illness.
Section 13 appropriates $1.75 million in General Fund in FY 2023 to DJJ for design costs related
to the establishment of a regional model of juvenile detention.
Section 15 deems certain transportation costs for juveniles as necessary government expenses to
be paid from the General Fund Surplus Account or the Budget Reserve Trust Fund. These
amounts are indeterminable.
Page 4 of 4 LRC 2023-BR1104-SB162 GA
DATA SOURCE(S): LRC Staff; Justice & Public Safety Cabinet; Cabinet for Health and Family
Services; Office of State Budget Director
PREPARER: Perry Papka NOTE NUMBER: 99 REVIEW: JAB DATE: 3/10/2023