Audit - Jail costs have hurt Pemiscot County finances

JEFFERSON CITY, Mo. -- Pemiscot County is in a "weak financial condition" because revenue sources expected to cover the cost of operating a new jail have proved insufficient, according to a recent audit of county finances.

The report by State Auditor Claire McCaskill's office also says two current and former county commissioners should repay a combined $29,600 in salaries they received under an unconstitutional state law.

The Pemiscot County Criminal Justice Center and Jail opened in 2002. A one-quarter cent sales tax generating $325,000 a year plus fees from housing federal prisoners and offenders from other counties was expected to cover operational expenses.

The county commission anticipated receiving $585,000 in prisoner housing fees when it crafted the county budget for the current calendar year. However, the audit says the county had collected only $190,000 from such fees as of Sept. 22. Operational expenses also exceeded initial estimates.

As a result, the commission has been forced to divert substantial amounts of general revenue from other purposes to help cover the shortfall.

Pemiscot County Presiding Commissioner Charles Moss said the loss of prisoners from Scott County once a new jail was opened there and the failure to secure a contract with the federal government contributed to the problem.

Moss said it remains unclear whether the expected federal contract will come through.

"Right now we are just waiting," Moss said. "We don't no if we will get it or not. It doesn't look good."

The commission eliminated 17 jobs at the justice center for a savings of $450,000 and should be on a firmer financial footing in 2004, Moss said.

An additional half-cent sales tax earmarked for paying off the bonds sold to finance the construction of the facility is providing about $600,000 a year and is sufficient to cover the county's debt obligation, Moss said.

On the salary issue, the audit says current Commissioner Mike Avis and former Commissioner Mike Clayton should each repay $14,800 in salaries they received in 1999 and 2000.

Moss said the commission at the moment doesn't plan to follow the auditor's recommendation, citing conflicting opinions on whether the county has a legal obligation to demand repayment.

"Until our prosecutor and our legislators tell us we have to, we're holding off," Moss said.

Starting in 1999, when Avis and Clayton were midway through their terms, their pay was raised by $7,400 each per year.

A 1997 state law authorized the action, despite the Missouri Constitution's ban on elected officials receiving mid-term pay hikes.

In May 2001, the Missouri Supreme Court declared the law unconstitutional in a case involving raises given to Laclede County commissioners. The court ordered those commissioners to repay the unconstitutional portion of their salaries.

McCaskill's office, which has no authority to enforce repayment, has cited several counties who granted the mid-term salary hikes for failing to comply with the Supreme Court decision. However, several counties have refused to do so.

mpowers@semissourian.com

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