The Nebraska State Auditor is calling out the state’s probation system for what he describes as a major spike in taxpayer-funded costs—largely due to poor oversight and lack of financial accountability.
On Monday, Auditor Mike Foley released a 41-page report scrutinizing the Nebraska Administrative Office of Probation (AOP), which oversees about 16,000 individuals across the state, including 5,500 juveniles and adults receiving specialized, court-ordered services like psychiatric care, family support, and substance abuse treatment.
Foley’s audit revealed that costs for probation services soared to nearly $62 million in 2024, a $19.5 million increase from just two years earlier. The main driver of this increase? Services for juvenile offenders—who, despite making up only 20% of the probation population, accounted for 88% of the total cost.
The auditor suggested that potentially millions of dollars were spent by the AOP for services that could have been covered by other sources—such as family payments, private insurance, or federal programs like Medicaid. State law, Foley noted, encourages parental responsibility and equitable use of public funds. However, his office found that courts were often not provided the financial background needed to determine who should pay for these services.
Foley didn’t mince words, stating his office has “consistently found room for improvement” in fiscal management and called the lack of financial oversight “irritating,” especially since victims and taxpayers end up footing the bill for services ordered by judges.
The Administrative Office of Probation responded by acknowledging the findings and expressing commitment to tightening internal policies. They emphasized that their staff does not currently have access to the same financial data as state auditors—something they hope to change through coordination with the Department of Health and Human Services.
Gene Cotter, the state’s probation administrator, noted improvements are already underway. Cotter said the agency has resolved an automated glitch that caused duplicate payments and revamped its voucher system. He also pointed out that state law requires a full range of juvenile services, which often come with high costs. Factors like a 25% increase in juvenile probation cases in 2023 and a 20% hike in provider rates over three years have further driven expenses upward.
Among the report’s other findings:
Only 38% of fees charged to adults for drug testing and surveillance were collected last year.
Some services, totaling over $10,000, were neither court-ordered nor properly documented.
Seven duplicate payments amounting to over $9,000 were made in 2024.
In one case, a juvenile’s group home stay was paid for even though the youth had reportedly run away.
Nearly $225,000 in services for state wards may have been eligible for federal reimbursement but were paid by the state.
While the report doesn’t compel the courts or AOP to make specific changes, Foley said he hopes it will raise awareness and encourage judicial and legislative reforms to better manage taxpayer dollars.
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