Title
Receive a report on the Fiscal Year (FY) 2025-26 Inmate Welfare Fund Annual Report, as required by California Penal Code §4025.
Report
RECOMMENDATION:
It is recommended that the Budget Committee Receive a report on the Fiscal Year (FY) 2025-26 Inmate Welfare Fund Annual Report, as required by California Penal Code §4025.
SUMMARY:
California Penal Code §4025 establishes the framework for the administration and use of county Inmate Welfare Funds, requiring that all revenues generated through inmate‑related services be deposited into a dedicated trust fund and expended primarily for the benefit, education, and welfare of incarcerated individuals. In accordance with this statutory mandate, the Monterey County Sheriff’s Office administers the Inmate Welfare Fund as a restricted‑purpose trust account. The goal of the fund is to ensure that revenues derived from commissary operations, inmate communication services, tablet‑based technologies, and related service commissions are preserved and utilized exclusively to support inmate programs, essential services, and quality‑of‑life resources within the County’s detention facilities.
DISCUSSION:
The commissary program continued to serve as a major revenue source, with $306,010 in commissions earned from purchases made by incarcerated individuals through the contracted vendor, Aramark. These commissions are tied to weekly sales cycles and are supported by detailed vendor reporting and verification within the County’s financial system. Likewise, the Inmate Care (ICARE) program produced an additional $105,660 in revenue.
Tablet‑based services constitute a significant and growing portion of inmate‑related revenue. Through a contract with Smart Communications, the Inmate Welfare Fund receives monthly commissions derived from inmate use of digital tablets for messaging, entertainment, and controlled educational content. During FY 2025‑26, tablet‑based revenue totaled $244,144 representing one of the most substantial components of overall fund activity. This trend reflects a shift occurring statewide as correctional systems migrate toward digital communication platforms, which simultaneously increase access for incarcerated individuals while generating predictable revenue streams for rehabilitative programming.
Telephone commission revenue, while historically a primary contributor to inmate welfare funds, has decreased significantly following regulatory changes that reduced or eliminated traditional call‑based commission structures. Despite these challenges, the County’s agreement with Smart Communications generated $72,178 in telephone commission revenue for FY 2025‑26. Though lower than pre‑regulatory periods, this revenue continues to provide meaningful support for inmate welfare programming.
Additional income flowed from the County’s signage agreement with Jail Advertising Network, which places public‑safety‑focused messaging within the jail environment. This program generated $56,700 in revenue during the reporting period, supplementing the fund with a stable, contract‑based income source. The trust fund also received $7,342 in miscellaneous revenues including quarterly interest allocations.
The Sheriff’s Office maintains internal controls to ensure that the Inmate Welfare Fund is managed responsibly and in compliance with state law, County administrative procedures, and trust fund accounting standards. These controls include verification of vendor remittances, reconciliation of commission receipts, quarterly interest postings, segregation of duties, and detailed recording of all transactions within the Departmental Trust Fund. Combined, these measures ensure that funds are accurately tracked and preserved exclusively for their statutory purpose.
Overall, the FY 2025‑26 financial activity demonstrates that the Monterey County Inmate Welfare Fund remains structurally sound, compliant with statutory requirements, and capable of supporting a wide range of future inmate programming and welfare initiatives. The accumulation of trust resources during this fiscal year provides the Sheriff’s Office with the capacity to continue enhancing inmate educational programs, reentry services, library resources, communication access, and quality‑of‑life supports in alignment with Penal Code §4025 and best practices in correctional services.
OTHER AGENCY INVOLVEMENT:
The Office of County Counsel has reviewed and advised on this Agreement as to legal form.
FINANCING:
This item is informational only and does not require supplemental appropriation. All funds described herein are restricted Inmate Welfare Fund revenues reserved for future inmate‑benefit expenditures in compliance with Penal Code §4025.
Prepared by: Charles DaSilva, Program Manager, ext#3855
Reviewed by: Timothy Lanquist, Chief Deputy, ext#3887
Approved by: Tina M. Nieto, Sheriff-Coroner, ext#3750
Attachments:
Penal Code 4025
Fiscal Year 2025-26 Financials