The Monroe County jail estimates it is owed more than $100,000 from the Indiana Department of Corrections for housing state inmates.
The IDOC said in February it has exhausted $34 million budgeted to reimburse county jails.
The IDOC can request county jails to house low-risk inmates. They are reimbursed $37.50 per day, per inmate.
Monroe County Jail Commander Kyle Gibbons said in a statement that the jail has not been reimbursed by the state since August last year.
Gibbons said the jail hasn’t had any major problems when it comes to housing inmates in Monroe County’s facility.
The state corrections department said it is working on a solution with the state budget agency.
Read more: County jails on the hook as state stops paying prisoner costs