Pike County Uses ICE Detentions to Keep Property Taxes Low

In the rural landscape of Pike County, an unusual partnership with U.S. immigration authorities plays a crucial role in keeping local property taxes in check. This collaboration has become a financial cornerstone for the county, providing significant revenue while housing federal immigration law violators.

For nearly three decades, Pike County has collaborated with U.S. immigration authorities, placing detainees in their county jail and generating millions in revenue each year. According to the county budget, Pike County is projected to earn $13,619,063 this year. This follows $6,316,546 in 2024 and $9,527,268 in 2025, as revealed by a county official.

The county commissioners intend to channel this revenue into rebuilding financial reserves depleted during the COVID-19 pandemic.

Arrangement benefits taxpayers

County officials emphasize that the funds from U.S. Immigration and Customs Enforcement (ICE) help alleviate the burden on property taxpayers. This financial relief is particularly important as property taxes are a primary revenue source for the county.

“You know, people say, ‘Oh, you should identify other revenue sources.’ Well, unless somebody knows something different, I know there’s only one other revenue source, and that’s the taxpayer, right?” said Osterberg.

Pike County is one of three county prisons in Pennsylvania where ICE routinely houses detainees, alongside facilities in Clinton and Cambria counties.

The Pike County Correctional Facility, spanning 87,500 square feet, was established in 1995 on a 268-acre site in Blooming Grove Township. This facility is designed to house both male and female offenders, although female ICE detainees are not housed there.

The arrangement’s history

Before 1995, Pike County managed with a three-cell jail, occasionally sending inmates to other facilities. Discussions of a combined prison with Wayne County did not materialize, leading Pike to construct its own facility.

Commissioner Ron Schmalze noted that the prison was originally built to accommodate future population growth in the county, which has consistently been the fastest growing in the state.

Initially, the prison had so few inmates that it couldn’t produce enough sewage for its treatment plant. This led to an agreement with ICE to house federal detainees.

ICE maintains offices within the prison, but as Osterberg clarified, “We operate the correctional facility. There are no federal people working inside the facility, guarding or taking care of the everyday operation… They’re (ICE agents) in and out of the building because they have to deal with their detainees, but just on that, not on actual operations, not supervision.”

On the day of an interview with WVIA, the prison housed approximately 250 ICE detainees alongside 107 local inmates.

A better contract

Six years ago, Pike County secured a contract with ICE for 100 beds daily at $120 per detainee. The recent contract revision now guarantees up to 285 beds per day at $178 per detainee. This contract ensures payment for reserved beds, regardless of use.

Commissioner Ron Schmalze stated, “Our argument through the years has been since we have to staff it and maintain those beds and be ready to do that number, we should be paid for that number. So, the new contract reflects that.”

Osterberg noted minimal pushback over the county’s role in housing ICE detainees. “The first four years, when I was elected in (20)11, no one was saying anything, and we were still housing a lot of detainees,” he said. “The next four years after that, we had people coming in here and saying, ‘Oh, you shouldn’t be doing this.’ We gave them tours of the building. And then the next four years, we heard nothing. And now, this four years, we’re hearing it again, but not a whole lot, I have to be honest.”

Osterberg praised the prison staff for their management, highlighting the lack of abuse or major issues. He stated, “And I think the federal government realizes that. Otherwise, they would say to us, ‘Hey, Pike, you run a really horrible operation, we’re out of here,’ because they could, right? But they’re not. They’re looking to work with us even more.”

Commissioner Christa Caceres, who is married to a Hispanic man, acknowledges occasional concerns but asserts that the county’s operations differ from negative portrayals seen elsewhere. “We’ve been doing this as a county for just over three decades without incident,” she said, inviting the public to tour the facility.

Osterberg concluded by stating, “ICE will always need room to house people who are here illegally. It’s not like it’s all of a sudden just started yesterday or just started in the last 20 years. It’s been going on probably since 1776. You know, there’s always going to be a need for it, and we have proven to them that we run a very, very well-oiled machine.”