September 2012                                                                                                              http://parca.samford.edu

In This Issue
Municipal Finance Comparisons
Strange But True
PARCA Friends on the Move

 

 

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Greetings from PARCA

 

Dear PARCA Supporter,     

 

The PARCA Quarterly, Fall 2012 has arrived and it contains the much anticipated Municipal Finance Comparisons.  This report takes a look at the financial data for Alabama's 20 largest cities and provides PARCA's signature "apples to apples" comparison.

  

We are also continuing our new section of the Perspective  titled "Strange But True." In an effort to share our discoveries from the Local Acts of Alabama,  we will be providing you with a unique discussion of local act(s) each month.  The most recent edition can be read below.

 

Please feel free to contact us with any comments. We value your feedback and support. 

 

Jim Williams

Executive Director

Municipal Finance Comparisons

   

Since 1989 PARCA periodically has compiled financial comparisons for Alabama's largest cities. The PARCA Quarterly, Fall 2012 contains the eighth report in that series. It provides basic information on municipal revenues, expenditures, and ending balances for a group of cities over 20,000 in population. The comparisons are done in terms of per capita amounts (dollars divided by resident population) so that cities of differing populations can be compared easily with one another. We believe the information can be valuable for city officials to use in benchmarking with their peers, and for citizens to see how their municipality ranks financially among comparable cities within the state.

 

The chart below shows the revenue sources for each of the 20 cities, ranked from highest to lowest by total revenues per capita. Sales taxes predominate in most of the cities, and the cities at the top of the chart typically have larger sales tax revenue than those at the bottom. However, there are a few exceptions to the pattern of sales tax dominance. To read more about city revenues per capita and to see the entire report, click here.

City Report Chart 

Strange But True

 

STRANGE BUT TRUE - "Keep and Retain"

  

Under Alabama law, Sheriffs are provided $1.75 per prisoner per day by the state to feed the inmates in their jails. A separate state law also allows them to "keep and retain" for personal use any unused money allocated for feeding prisoners, except in the instances where the county creates a resolution directing the allowances to be paid into the general fund.

 

These laws date back to a time when most Sheriffs did not receive a salary and derived most of their compensation from fees. Over the years, many changes in the law have been made for individual counties, adopted in local acts of the Legislature. These laws essentially allow state legislators from a local area and local officials to create their own methods for handling the prisoner-feeding issue.

 

In our search of PARCA's compiled Local Acts of Alabama, we found over 80 local acts that govern the feeding of prisoners. Some of these laws require the state funds for feeding prisoners to be deposited in the county general fund, creating some oversight over their use and ending the practice of the sheriff retaining funds for personal use. In a majority of cases, however, the local acts retain the practice of allowing the sheriff to keep unused funds intended for feeding prisoners.

 

Madison County, for example, has a local act which allows the county to control prisoner food allowances: 

 

The Sheriff of Madison County shall be entitled to receive as compensation a salary...which shall be payable in equal monthly installments by...the General Fund of the County. Such salary shall be in lieu of all other compensation, remuneration or repayment of expenses heretofore provided by law, including...allowances authorized for feeding prisoners.

 

Butler County has one example of a local act which reinforces old patterns:

 

The Sheriff of Butler County shall be entitled to keep and retain the allowances payable

by the state for feeding prisoners.

  

A key question asked by almost no one is: Why should there be local discretion in handling the critical issue of feeding prisoners in county jails? Shouldn't there be standards of accountability that apply across the state for matters such as this? Perhaps no local acts of the Legislature should be allowed on this subject at all.

 

Those in favor of allowing sheriffs to keep and retain unused prisoner-feeding funds argue that sheriffs are personally responsible for feeding inmates, and there is often money lost due to the low per diem given by the state. On the other hand, many opponents argue that the law gives sheriffs an incentive to skimp on inmates' meals for their own profit, and this arrangement lacks accountability and invites corruption. Until a few years ago, there was no evidence to support that corruption had occurred.

 

In 2009, Morgan County's Sheriff was jailed overnight in a federal prison after the judge ruled he purposely fed prisoners inadequately to maximize his personal profits. The Sheriff testified that he had deposited over $200,000 of state and federal funds allocated for feeding prisoners into his personal account. Due to the general and local acts governing his actions, this was not illegal; but under state law, sheriffs are required to provide food that is "nutritious, clean, wholesome and of sufficient quantity" and the food being served in the Morgan County jail was "woefully insufficient" according to the court ruling. The Sheriff was released the next day and pledged to use all state and federal funds for feeding inmates in the future. In a similar case in 2006, the Mobile County Sheriff pleaded guilty to perjury and an ethics offense, agreeing to repay $13,000 he had moved from a jail "food fund" to his personal retirement account.  

 

Many attempts have been made over the years to repeal the original law giving sheriffs the ability to "keep and retain" the prisoner food allowances. After the incident in Morgan County, some legislators tried to pass a bill providing that the allowance for feeding prisoners must be deposited in a special fund in the county treasury and used only for feeding prisoners. However, the legislation failed.

 

PARCA Friends on the Move

 

-   PARCA Board member Bob Davis has been named Associate Publisher for The Anniston Star.  He also received the honor of Opinion Editor of the Year by the Association of Opinion Journalists.  To read more about Mr. Davis' new role, click here.

 

-  HealthSouth CEO and PARCA Board member Jay Grinney ranks on Modern Healthcare's 2012 list of the industry's 100 most influential people in the country.  Click here for more information.

 

Jerry Powell, PARCA Board member and General Counsel and VP for Cadence Bank, receives an award from the Birmingham Business Journal's inaugural Corporate Counsel Awards.  Read more here.

 

-  Samford University, led by PARCA Board Member Andrew Westmoreland, ranked fourth among regional universities in the South by U.S. News & World Report annual college rankings.  Read more about Samford's recognition here.