Paying Financial Sanctions via Incarceration: A Case Study of “Sitting Out”

This Article provides a comprehensive statewide study of a practice by which courts order defendants to pay financial sanctions—fines, costs, and probation fees—by serving terms of incarceration. Though several states authorize these practices, to date, very little is known about the extent to which payment via incarceration occurs and the different ways it is employed. This Article examines the use of the practice in Nebraska, where it is colloquially referred to as “sitting out.” Our study specifically focuses on all misdemeanor cases in Nebraska county courts with judgments (an adjudication of guilt and/or sentencing) during the year 2019.

This study examines the ways in which payment via incarceration is consistent with and diverges from the archetypal “modern debtors’ prison,” in which penalties related to the nonpayment of fines are widespread, imposed against people of limited means and particularly people of color, and which carry the risk that the inherent revenue-generating qualities of financial sanctions will pervert crime policy.

We find that Nebraska’s practices are consistent with that archetype in that payment via incarceration is deeply integrated into the jurisdiction’s legal systems as evident through its widespread use. We discover that courts ordered 10,027 defendants to pay financial sanctions via incarceration in over a quarter of all misdemeanor cases in our dataset, an alarmingly high rate. Those defendants also sat out a notably high amount of financial debt—$2,105,462 in the aggregate. At $150 per day (the rate at which Nebraska credits incarceration against financial debt), the defendants in our study spent a minimum of 14,036 days in Nebraska county jails to pay off fines, costs, and probation fees.

The results of the study are also consistent with a second archetype— that in modern debtors’ prisons, people of limited means, and particularly people of color, are subjected to financial sanctions they have no meaningful ability to pay and punished for their poverty when payment is not forthcoming. Our findings illustrate that many defendants who were subjected to sitting out were convicted for offenses frequently linked to poverty and many were declared indigent by the court for the purposes of appointing counsel. Further, the cases in our database exhibit troubling racial disparities.

Other findings, however, complicate the narrative surrounding modern debtors’ prisons, especially with regard to revenue-generation incentives of government actors. On its face, sitting out appears to undermine the idea that government actors are motivated by revenue generation. Unlike systems in which the debt remains outstanding, when a defendant is ordered to sit out financial sanctions, the debt is paid off by the incarceration. This ensures that revenues are never secured, while leaving the jurisdiction to bear the expense of incarceration. To investigate this issue and track how money moves into and out of government coffers when sitting out is employed, we create an original typology of the various forms of payment via incarceration useful for studying Nebraska’s system and those in other jurisdictions. What we find is geographic diversity in the mechanisms for sitting out that carry different fiscal implications.

After presenting the study’s results, we conclude by discussing the key takeaways of our research, its limitations, and several law and policy implications that open potential avenues for future research.