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Program A: Prison Enterprises

Program Authorization: R.S. 15:1151-1161

PROGRAM DESCRIPTION

The mission of the Prison Enterprises Program is to reduce the overall costs of prison operations, state agencies, local government entities, and tax-supported institutions by operating self-supported industrial and agricultural businesses that: employ offenders in meaningful jobs, teach job skills and good work habits, provide quality, cost-effective products and services, do not unreasonably compete with Louisiana businesses, and reflect a philosophy of integrity and otherwise come as close as possible to businesses in the private sector.

The goals of the Prison Enterprises Program are:

1. Improve Prison Enterprises effectiveness through planned management initiatives and continual refinement of procedures that will allow for the managed growth of Prison Enterprises.

2. Enhance public relations by educating lawmakers, state agencies, parishes, municipalities, and other political subdivisions as to the purpose and scope of Prison Enterprises.

3. Develop and implement a formal marketing plan in which the marketing function works closely with the sales function and the individual industries in order to know their production capabilities.

4. Operate more efficiently in order to maintain an appropriate profit margin thereby allowing for needed recapitalization of aged/outdated equipment and facilities.

5. Change or refine existing products to meet market demands and to expand the available market for existing industries products.

6. Be aware of any new industries that Prison Enterprises may develop to meet the needs of the Department of Public Safety and Corrections and other state agencies.

All Louisiana Prison Enterprises programs have met all appropriate American Correctional Association standards in cooperation with each audited adult correctional institution.

A list of Prison Enterprises Operations, by locations, follows:

PRISON ENTERPRISES OPERATIONS BY LOCATIONS FY 1997-1998

 

OPERATION

LOCATION

AGRICULTURE

INDUSTRIES

RETAIL

SERVICES

Louisiana State Penitentiary (Angola, LA)

Dairy

Tag Plant

Food DIstribution Center

 

 

Rangeherd

Silk Screen/Sign Shop

 

 

 

Corn/Milo

Metal Fabrication

 

 

 

Cotton

Mattress, Broom, & Mop Factory

 

 

 

Soybeans

Print Shop

 

 

 

Wheat

 

 

 

 

Vegetables

 

 

 

Dixon Correctional Institute (Jackson, LA)

Rangeherd

 

 

Janitorial Services

 

Corn

 

 

Meat Plant at Wakefield

 

Horse Program 1s

 

 

 

 

Food Processing

 

 

 

Hunt Correctional Center (St. Gabriel, LA)

Rangeherd

Soap Plant

 

Mail Processing

Louisiana Correctional Institute for Women (St. Gabriel, LA)

 

Chair Plant

 

 

Allen Correctional Center (Kinder, LA)

 

Furniture Factory

 

 

Winn Correctional Center (Winnfield, LA)

 

Garment Factory

 

 

 

 

PIE (Private Industry Enhancement) Program

 

 

Phelps Correctional Center (Dequincy, LA)

Rangeherd

Garment Factory

 

 

David Wade Correctional Center (Homer, LA)

Swinery

 

 

 

Washington Correctional Institute (Angie, LA)

WCI Farm

 

 

 

Jetson Correctional Center for Youth (Baton Rouge, LA)

Rangeherd

 

 

 

Louisiana Training Institute (Monroe, LA)

Rangeherd

 

 

 

Various Institutions

Land & Timber Management

 

 

 

1 In process of liguidating assets in program which is to be discontinued.

OBJECTIVES AND PERFORMANCE INDICATORS

1. In FY 1998-99, the Prison Enterprises Program will increase product sales.

1 The determination of future revenues for the Prison Enterprises Program is often dictated by the budgets of other state agencies and by market conditions and other factors that affect the sales of many of the program's products. These factors can cause revenues to fluctuate drastically from year to year in individual operations, making projections very difficult. However, in certain areas of Prison Enterprises operations, the program does have some degree of control and can take steps to increase these revenues. These operations consist of manufacturing entities that produce goods that can be used by state agencies and nonstate agencies other then the Department of Public Safety and Corrections, Office of Corrections Services. Through effective use of marketing and the program's sales force, the program looks to improve its performance in these entities. As a result, these indicators are based upon sales of products from industries that are affected by these elements, which can be readily measured from year to year.

2. In FY 1998-99, the Prison Enterprises Program will maintain or increase direct savings to the state through payment of inmate incentive wages.

1 Payment of inmate incentive wages by the Prison Enterprises Program for the entire Office of Corrections Services is one measure of direct savings to the state. Since all Prison Enterprises revenues are self-generated, payment of these wages avoids necessitating an appropriation from the General Fund for payment of these amounts. While any increase of this amount represents additional amounts saved by the General Fund, the Prison Enterprises Program hopes to control the incrementation of these wages through various means. This will not be an indication of less savings to the state but will represent an overall lesser liability incurred. However, at this time, the program projects an increase in this amount and therefore additional savings to the General Fund.

SOURCE OF FUNDING

This program is funded with self-generated revenues derived from sales to state agencies, municipalities, parishes, non-profit organizations and sales of surplus farm products on the open market.

ANALYSIS OF RECOMMENDATION

GENERAL FUND

TOTAL

T.O.

 

DESCRIPTION

 

 

 

 

 

$0

$28,443,622

114

 

ACT 1430 FISCAL YEAR 1997-1998

 

 

 

 

 

 

 

 

 

BA-7 TRANSACTIONS:

$0

$0

0

 

None

 

 

 

 

 

$0

$28,443,622

114

 

EXISTING OPERATING BUDGET - December 10, 1997

 

 

 

 

 

$0

($512,550)

0

 

Equipment/Major Repairs Adjustment

$0

$71,656

0

 

Annualization of 1997 -'98 Merit Pay Adjustment(s)

$0

$48,774

0

 

1998 -'99 Merit Pay Adjustment(s)

$0

($751,838)

(26)

 

Personnel Reduction(s)

$0

$513,862

0

 

Attrition Adjustment(s)

$0

($14,440)

0

 

Retirement Rate Adjustment(s)

$0

$302

0

 

Adjustment(s) for Civil Service, Training and other statewide interagency transfers

$0

$43,796

0

 

Risk Management Adjustment(s)

$0

$9,554

0

 

Legislative Auditor Fees

 

 

 

 

 

$0

$27,852,738

88

 

TOTAL RECOMMENDED

 

 

 

 

 

$0

($590,884)

(26)

 

DIFFERENCE (TOTAL RECOMMENDED AND EXISTING OPERATING BUDGET)

The total means of financing for this program is recommended at 98.0% of the existing operating budget. It represents 95.9% of the total request ($29,050,870) for this program. The decrease in the recommended level is primarily attributed to the elimination of twenty-six (26) vacant positions along with the appropriate funding. The elimination of the vacant positions along with the attrition adjustment is recommended to provide the necessary adjustments needed to fully fund the 88 recommended positions.

PROFESSIONAL SERVICES

$128,610

 

Management Consulting Contracts to provide economic impact studies on Prison Enterprises operations; provides information from milk weight and information for sound management of dairy operations; provides programming for the Prison Enterprises computers

$90,000

 

Engineering and Architectural Contracts to provide technical assistance for construction and expansion of Prison Enterprises operations

$80,807

 

Veterinary Services for animals utilized in farm operations

$103,600

 

Other Professional Services to provide for a chemical consultant to restructure chemical formulations and for material safety data sheets and laboratory fees; provide for forestry consultant services; provide consulting services to assist in the license plate operations for Puerto Rico and Guatemala; provide for agricultural consulting services; provide architectural design and layouts of garment operations; provide for photographic and graphic designs for PE brochures and catalogs

 

 

 

 

 

 

$403,017

 

TOTAL PROFESSIONAL SERVICES

OTHER CHARGES

$7,638

 

Department of Civil Service

$748

 

Comprehensive Public Training Program

$40,792

 

Legislative Auditor

$1,185,061

 

Inmate incentive wages

 

 

 

$1,234,239

 

TOTAL OTHER CHARGES

ACQUISITIONS AND MAJOR REPAIRS

$1,244,860

 

Replace three vehicles and various farming equipment; repair headquarters warehouse, expand dairy at LSP, make repairs to Food Distribution Center, mattress factory and soap

 

 

plant

 

 

 

$1,244,860

 

TOTAL ACQUISITIONS AND MAJOR REPAIRS

 


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