News Service of Florida: 5 Questions for Jim McDonough

by Margie Menzel, The News Service of Florida 

The below article containing the responses of former Florida Department of Corrections Secretary, Jim McDonough was published today.

Secretary McDonough answered tough questions about Governor Rick Scott's continuing pursuit of privatization of everything "Prison" in Florida...

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James R. McDonough was the secretary of the Florida Department of Corrections from 2006 to 2008. He was tapped by Gov. Jeb Bush, for whom he'd worked as Florida's drug czar since 1999. McDonough moved to DOC after Bush fired Secretary James Crosby, who later went to prison for taking kickbacks.

His no-nonsense style proved the antidote to scandal at DOC. He fired or demoted dozens of prison officials and instituted random drug tests and mandatory fitness programs for employees. He angered many, but is widely credited for cleaning up the place.

Since leaving DOC, McDonough has stayed active in corrections. He's involved with the "smart justice" movement to cut recidivism via substance abuse and mental health treatment and basic education for prisoners. He also favors diversion programs and other reforms, and is comfortable sailing against the political winds.

"Politics in Florida has been such that public officials are afraid to appear, quote, weak on crime," he said. "And the way that's defined is, 'Don't lighten up on the sentencing in any way whatsoever.'"

A retired Army colonel, McDonough has won three Bronze Stars and a Purple Heart. He's written three books: "Platoon Leader;" "The Defense of Hill 781;" and "The Limits of Glory."

The News Service of Florida has five questions for Jim McDonough:

Q: Privatization is a big part of Gov. Rick Scott's approach to cutting prison costs. Agree or disagree?

McDONOUGH: I don't agree. There are some things government has to do. If you're going to be incarcerating its citizens, that's a state function, not a for-profit function. Right away, you have problems when you take that approach.

I think Florida became a very lucrative state to market private prison systems and the services that came with it. The medical issue, I think, is tied in with all of that. If the state is going to arrest people and put them behind bars, it picks up the obligation to look after their health – and not market that out to the most attractive bidder, which usually means the lowest bidder.

I'm not surprised Florida became such a target for the private companies. It's a huge market, and became, on the surface, an attractive way to go.

Now, in my opinion, it's the obligation of the state. I think if it becomes the obligation of the state, it'll be justly met. But if you turn it into an enterprise, with commercial profits involved, it's a risky business.

Q: The backers of private prisons argue they're more efficient than state prisons. True?

McDONOUGH: In my time as head of the corrections system of Florida, I considered it my obligation to look into the housing of all of the inmates, whether they were cared for by the state or the private prisons.

Clearly there was an effort to send to the privates the easier inmates to handle. That meant that you don’t have the more misbehaving inmates or the more dangerous inmates or the more medically ill inmates going to the privates. So for the privates, that becomes an advantage. If you're not working overtime to take care of all of that, and spending the money, then the overall outcome appears to be less expensive.

But it's not. When [private prisons] grow and take increasing percentages of the inmates, they get the ill as well as the well. They get the violent as well as the non-violent. They get the dangerous as well as the stable, and so on. So I always thought that the selling point that it could be done at a percent less than it cost the state to care for an inmate was absolutely skewed data.

One of their prime conceptions was to hire employees at the lowest possible wage level. I thought that meant there was not as careful a pick of who was going to work in the system. And my observation, going into the prisons, was that was political. And that meant, therefore, that the discipline, the behavior, the control within the privates were not up to the standards they should have been.

Q: You backed a bill last session to allow non-violent, drug-addicted inmates to move from prison to treatment programs after serving half their time. Why did it fail?

McDONOUGH: I continue to see some well-respected law enforcement officials arguing that any questioning of [current sentencing guidelines] proves there's a lack of understanding of the seriousness of crime. I think that's nonsense.

The Legislature, which is largely Republican, passed it. Not only did they pass it, it passed with overwhelming numbers. So there you had a good idea, a good bill, tremendous political support. And then you had shrill voices saying, "Oh, no, no, no...We shouldn't do this, because it'll be weak on crime."

And lo and behold, the governor vetoed it. It was an unbelievable instance of a lost opportunity, of playing to this over-inflated, get-tough-on-crime mystique.

Q: But hasn't the crime rate been going down? Doesn't that suggest getting tougher works?

McDONOUGH: Yes, when you get tougher on crime and you get a very violent criminal who's on a crime spree and can't change his behavior, incarcerating that guy and keeping him a long time does have an effect on public safety. I'm all for that.

But it's like a pendulum swinging. If you go too far, it's going to crash back of its own weight. The crash-back we have seen, by incorporating everybody into these policies and laws that lead to more time in prison.

It's just too expensive. You have caught up in this pendulum swing a lot of people who would not be doing damage on the outside, and who – with a little bit of money invested in their rehabilitation – would probably do quite well.

Q: Florida was just cited for a 166 percent increase in the average sentence between 1990 and 2009 – the most of any state. Other states have dialed back their sentences. Why not Florida?

McDONOUGH: Other states that are conservative in their political structure, like Texas, actually have gone the other way. They've really flattened out their prison growth. They've saved hundreds of millions of dollars on prison construction, and they have seen crime decrease.

So the examples are out there. Florida is sort of a holdout, on an idea that has seen its day, served a purpose for a bit, but now has gone too far. I'd like to see Florida come into the modern age a bit, and come up with smart justice approaches. 

Democracy Stands Up to ALEC and the theft of America by Kochroaches in Cincy!

As most know, many Kossacks traveled to Cincinnati, Ohio this past week to attend the first ever Anti-American Legislative Exchange Council (ALEC) Protest there at that organization's scheduled Spring Summit. The entire month in the run-up to the event and the actual event were reminiscent to me of the: Civil Rights, draft, Anti-War, government and abortion protests Americans participated in throughout the 60's and 70's across the wide expanses of America. Those were important times and necessary demonstrations in the history of our country. Those who participated nearly a half century ago were trying and succeeding to some extent in changing the course of the U.S. on many matters. As in earlier times when those fighting for fair wages and treatment by employers, the turmoil of the 60's and 70's spilled blood, but in time we prevailed.

This week in Cincy was a reminder to everyone there and even the passers-by, that Democracy is once again under attack and involvement is desperately needed to alter the course our country is being taken - through corporatocracy and corruption driven by greed. The generation of today - those now entrusted with the future of themselves, their children and those rights many of us fought for in the past - has taken the helm and begun to attempt to change the course we've been put upon by corporate interests.


We really are standing perched upon a precipice, collectively as a society and more importantly, as Americans. A terrible void is at our backs and from the front we're being pressured from all points, a steady - and until Friday - unresisted force against our democratic way of life as Americans. Though this force is multi-faceted and comes from different directions, applied by what appears to be groups, organizations, PAC's, think tanks and corporations - these are not attacks by totally independent entities who individually oppose Progressive views. No, this is all coordinated by the power, influence and financing of Charles and David Koch.

Using money generously provided them from the ultra-rich Koch "Monopoly", Right Wing Think Tanks, PAC's, 527's and Conservative groups (Mackinac Center, American Enterprise Institute, American Life League, The Cato Institute, The Heritage Foundation and dozens of other groups and organizations found here) are the ones applying this force pushing us toward the abyss. I accurately and without equivocation call this all a Koch Monopoly - not because they own so much of America's wealth now...or because they have managed to monopolize one particular industry, product or company. No I call them this because today they have a genuine monopoly upon nearly all U.S.legislation proposed and beneficial to corporations, business and of interest to conservatives. Legislation that once enacted further weakens us and enriches the corporations.

What only a handful of us know and understand, is that even if the lawmakers within ALEC come up with legislation they wish to propose in their states that will benefit their constituents - they are prohibited from proposing or introducing that legislation in their state General Assemblies unless the legislation is approved by the Corporate members of the task force or any committee! Really, this is how ALEC works...

"ALEC's task forces craft the organization's public-policy agenda,its "model" legislation and issue positions. On each task force, the private-sector representatives have an equal vote with the state legislators'and effective veto power over the task force's activities and legislative recommendations. Nothing can move out of the task force without agreement from its private-sector representatives."

Because of this single but controlling provision, no laws discussed or supported by any ALEC lawmaker can ever become law anywhere in the U.S. unless the Corporate membership gives their blessing. Think about this aspect for just a moment and consider that by their own admission; ALEC's legislative membership is compromised by 2,400 state lawmakers - fully 1/3 of the total number of duly elected state Senate and Congressional members in this country. Indeed, the state legislators who attend ALEC meetings are joined by the platoons of lobbyists, corporate executives, and representatives of assorted trade and professional associations who pay to have these 2,400 lawmakers as their captive audience...and are prohibited from proposing anything that is not authorized by these corporate interests. To me this indicates that through ALEC, no legislation beneficial to the public will ever reach state assemblies unless it benefits the corporations in some form or manner. Also it means that certain legislation proposed by the corporate arm of ALEC to purportedly protect the public and has become actual state laws, were enacted to enrich the corporate members of ALEC:

"For ALEC's corporate sponsors, "a seat at the table" "on one or more of its "task forces" is the ideal mechanism for pushing "model" legislation favorable to their interests. Consider, as just one example, ALEC's recent work in the criminaljustice arena. "ALEC developed model criminal justice policies that kept criminals off of our streets for longer periods of time,"one of its recent publications notes, "and allowed private industry to use its expertise to help states meet their growing incarceration needs." The publication goes on to point out that twenty-eight states have authorized the use of private prisons to house inmates. Is it any surprise that ALEC's Task Force on Criminal Justice has been cochaired by a representative of Corrections Corporation of America, the nation's largest operator of private prisons?

Another active private-sector participant in ALEC's Task Force on Criminal Justice is the National Association of Bail Insurance Companies, whose membership consists of the ten companies that write the great majority of court-appearance bonds in the United States. In a recent brochure, the association touts "the ALEC connection" as "an essential ingredient" of NABIC's legislative strategy."

This alone generates a lot of income from CCA and Geo Group for ALEC. The old "one hand washes the other", syndrome.

The money and influence guiding each of the cold fingers prodding us toward the precipice I mentioned above, is primarily coming from the Koch family and their Family Foundations through a core group that coordinates them all - the American Legislative Exchange Council Koch money funds everything and Koch influence and real power is exerted through their membership in ALEC and their position upon ALEC's Private Enterprise Board and more than one of the nine (9) ALEC Task Forces.

If I was comfortable in how to produce charts I would have one with Koch Industries at the top and below that: Charles Koch Foundation, the David Koch Foundation, the Koch Family Foundation (that includes the Claude R. Lambe Charitable Foundation). Below these I'd have a list of "Influenced by the above" with lines running to; the Heritage Foundation, Reason Foundation, American's for Prosperity, Club for Growth, Cato Institute, Castle Rock Foundation, Eagle Forum, Mercatus Center, Institute for Humane Studies, Citizens for a Sound Economy, Institute for Justice, Alexis de Tocqueville Institution, Institute for Energy Research, Foundation for Research on Economics and the Environment, The Manhattan Institute, the George C. Marshall Institute, American Enterprise Institute, Citizens for a Sound Economy and...I could go on but I'd run out of space to fit the little boxes in.

From there I'd run lines through Mainstream media and Fox News, through to the American Legislative Exchange Council. Under ALEC would be lines to the Nine Task Forces and from those would be lines to the top 350 U.S. Corporations on one side and to 2400 Conservative state Lawmakers on the other. From the Corporations and State lawmaker boxes the lines would move inward to a single box that reads "Legislation in the 50 United States of America"...or to be more factual and realistic, the final box would be labeled: "How the Koch brothers Intend to Rule the U.S."

But, like I said I have no proficiency for charts and graphs, so I'll leave that up to a bright University student or grad to accept as a challenge. He or she will no doubt create it in a few moments and post it so all could see graphically what is perhaps today, the worst thing that has ever happened to the U.S. population - from within.

While we are distracted by the marital plans of the British Royalty, and the question of our President's place of birth, covered 24/7 by the mainstream media, ALEC members - certainly including those representing the Koch's interests - hoped to quietly meet in Cincinnati to plan their legislative agenda for 2011. There in the Hilton Hotel they hoped to decide which laws and issues they will present to the entire membership and propose implementing to the individual state legislatures over the next several months. These are laws and legislation intended to be put into place that we, as a society will be told to abide by (properly sanctioned and blessed by the corporate arm of ALEC). They anticipated that as in years past, this would all be done quietly, in secret with no one knowing that those laws would have been written, developed and worded by ALEC - and ALEC alone. We were not to know that those laws were created with specific input from the corporations and owners of those companies so that they could acquire more profits and influence - or a greater market share in their particular fields. This was their intention...

...We, however had an entirely different agenda; to expose their corrupt methods of implementing laws upon Americans that are written and funded by their corporate masters and lobbyists! We few Americans decided enough is enough already. We'd become tired of funding cuts to education, healthcare, necessary and critical social programs, environmental programs and deregulation of all things governmental to keep corporations in check.

Once word got out in Ohio about the choice of Cincy as the Spring Summit location for ALEC's meeting, the students of Ohio, Indiana, Louisiana and other states put together a protest, rally and educational "Teach-Ins." (As an aside, and a proud one, this protest suggestion was proposed and started right here on D Kos)! The purpose of the protest was to awaken more Americans to the pursuits of Koch funded and influenced legislation that would; allow more arrests; increase incarceration and long sentences served in prison where the prisoners would serve as a slave workforce for those corporations affiliated with or members of ALEC; cut funding for education at all grades and levels; reduce wages for public sector workers; end collective bargaining; break up Unions; repeal universal healthcare; eliminate abortion, deregulate important government programs and oversight, and; repeal child labor laws.

These young and highly motivated and intelligent "whipper-snappers" kicked ALEC and their Corporate master's collective asses - and by the looks of some of those CEO's in attendance, many of those backsides were indeed unbelievably HUGE...from living the high life and feeding freely at the trough that is constantly flowing with our tax dollars.

The seeyouincincinnati organizers made me proud to be a Progressive American. Watching them put this protest together, coordinate those to speak, crowd control, housing for those of us from out of state, garner Union supporters, secure permits and space for the protest and march...finally provided me with a sense that just maybe there was hope for us as a democratic society...that Koch and ALEC could be stopped. Oh, not immediately and just because of a grass roots campaign expertly and smoothly operated by college students and supported by a group of us old farts...no, because this protest has sounded the alarm and awakened other students and old Dems in many other states. Plans, preparations and strategy is now underway for the next round that will take place in New Orleans from August 3rd through August 6th. This time the students - fighting desperately for an education promised them by the laws and Constitution of this great nation - have become alerted to the legislation intended to deprive scholarships and state and federal funding. Their education and thus their future is in jeopardy if ALEC and the corporations prevail. They have not only become aware about the legislation, they now know the enemy. They met them face to face in Cincy at the Hilton and in Fountain Square as Corporate CEO's , corporate representatives and state lawmakers smiled, snickered and in some instances openly laughed at protesters. But as an old timer at this kind of demonstrating, I and many others looked past the smirks, laughter and smug attitude filled rhetoric. We looked into the eyes of the CEO's and lawmakers...we studied the body language as they laughed...and we saw the signs of nervousness and real unease.

During the march we found a small group of state lawmakers standing outside the Hotel, huddled in the entryway - 3 or four of them with a couple of others that appeared to be staffers. I listened attentively as one of them spoke with one of the organizers wearing a "Marshal"shirt, claiming that he and the other lawmakers standing with him were opposed to the SB 1070 styled legislation other members were pushing for in every state. He described ALEC's membership as being one of diversity and he and the others standing with him strongly opposed such discriminatory legislation. As I listened it dawned on me that what we were witnessing was not simply an attempt to dis-inform, rather it was the first signs of a tiny crack within ALEC. The lawmakers standing nervously around the one speaking (A short man, grey haired, wearing glasses with a name tag identifying him as an ALEC member, named Ralph - couldn't see his last name on the badge) were actually trying to identify with the protesters and separate themselves from the ALEC agenda - at least on the immigration initiative. They weren't trying to justify the ALEC initiatives, they were in fact declaring that at least some of the ALEC and corporate controlled and proposed legislation was wrong. They were anxious to not be included in the group supporting SB 1070.

Just as the march, protest and Teach-Ins were a first in the history of ALEC - so was this crack in the ALEC membership. Lawmakers were starting to realize with the eyes of the public looking intently at them, their political future could be in jeopardy due to membership in ALEC. Seeing this I was actually inspired that with more pressure and a larger turnout in New Orleans later this year, we can create more cracks and widen smaller ones that could develop between now and then due to the document dump many are speaking about.

Wisconsin, Indiana, Maine, Florida, Ohio and many other states are on the ropes financially right now. They are cutting everything beneficial to the public and to workers as they fight to continue funding massive incarceration and the prison industry program that serves as a cash cow to the companies using that labor. Profit from the slave labor is then reinvested in lobbying and campaign contributions to keep the Conservative agenda alive and well, funding even more beneficial corporate initiatives.

I think the cabal is beginning to waiver slightly due to the Protest and confrontations that took place on the 29th. In New Orleans in August we hope to drive a solid, heavy wedge into those cracks, over and over until the whole begins to crumble. It won't happen all at once, but I'm confident that another round or two and some lawmakers will begin to drop their memberships to ALEC. I think others will find that when legislation is proposed by corporate interests that would anger the public, they will be less willing to simply sign on and go along. 'Course, as DM used to proclaim, "That's just my opinion, and I could be wrong..."

Below I've posted some pictures we took at the Protest Friday.

An important message indeed. Some may think this protester missed breakfast before attending, but I think he wants to take a bite out of ALEC...



Protest organizers found my wife, Jean and I a place to stay the night before the Rally. We stayed with Flequer Vera (I hope I've spelled his name correctly):



Jean and Flequer in front of the Fountain in Cincy:



Here's the wife and I holding a sign that we think says it all:

"

Prepping for the Teach-In the night before the Rally. Of course I got caught chewing on a scone when the pic was taken:



Some Kabuki(?) and Organizer staff signing Petitions against SB 5 in Ohio at the Rally:



Bad picture of a SEIU Union member and sign at the Rally. Several Unions were present and active in protesting several anti-Union and worker legislation initiatives there in Ohio:



One of the Protest organizers speaking to the crowd of a couple of hundred protesters:

Another shot of the crowd with a Union member in the foreground:



My video camera malfunctioned and all of the footage I took of the Protest, Rally and March was not captured. This is why I only have the stills the wife and I took during the event. Wish I had more, but I've seen dozens of others posted in several diaries, so the event was covered from all angles.

My greatest thanks to all the students, grads and others who organized, showed up and took part in the march and more importantly attended the Teach-Ins to find a common purpose and the tools necessary to wage this war against education and American workers. I would have given this praise and written a diary sooner than Sunday night, but I have been inundated with calls, emails and faxes requesting more information, interviews and requests for appearances - all this from the opportunities provided by the SeeyouinCincinnati organizers, students and neighborhood associations and groups that made the spreading of the word and networking really work...

...because of your efforts I am thankful and emboldened to do even more. To Aliya, Ben, Alan and others whose name I unfortunately have forgotten or didn't get in the first place (I've gotten old and remembering names is harder than understanding encryption), congratulations and a heartfelt thanks. If you read this count us in for New Orleans. We wouldn't miss that opportunity, even if Koch gets ALEC to propose legislation making NO off limits to Progressives! I'll just put on my red hat in August and go as a faux Conservative. I'll just have to keep my big mouth shut most of the time :)

INSOURCING - Fighting for reform - can cost you your job.

Bob Sloan (C)2010

Fri Dec 3, 2010

For those visitors who may have missed my Corporatocracy series involving corporations, private prisons and prison labor, below are links to the series.

Corporatocracy
Corporatocracy-II
Corporatocracy-III
Corporatocracy-IV
Corporatocracy-V
Corporatocracy-Conclusion

Bob Sloan's diary :: ::
From 2003 through 2006 the Florida Department of Corrections (FDOC) was suffering from a severe case of corruption. James Crosby, former Warden at Florida State Prison (FSP-Death Row) had been chosen by Governor Jeb Bush in January 2003 to serve as the new Secretary of the FDOC (a Cabinet poistion). He replaced Michael Moore (no relation) who was leaving under a cloud of controversy and allegations of corruption. The Secretary's position included a permanent seat upon the Prison Rehabilitative Industries and Diversified Enterprises (PRIDE) Board.

There were many other choices for the Governor to pick from, but he knew Crosby. During both elections where Bush prevailed, Crosby had been a loyal supporter. He held or sponsored many meetings, dinners, parties and fund raisers for his friend Jeb. In addition to Crosby's support, Bush also had the support of another FDOC employee - A.C. Clark. Later Crosby and Clark were often referred to within the FDOC as heads of the "Good Ol' Boy's Club" or collectively, "The Big Boys".

Together Clark and Crosby twisted arms, threatened loss of prime shifts or overtime in efforts to "get out the vote" for Jeb and suggest others within the FDOC make "contributions" to Bush's campaign. In both instances a lot of support and money was garnered from among FDOC staff (22,000+) in support of Jeb Bush. Later many of those FDOC employees voiced complaints that their attendance at fund raisers, contributions and votes were coerced by Clark and Crosby through fear of losing jobs, having their shifts changed or being transferred from one institution to another, if they did not do as "suggested" by the Good Ol' Boys.

So Crosby's selection to head the state's entire Department of Corrections appears to have been based - at least in part - as a reward to Crosby for his political activities related to both Bush campaigns in Florida. Of course Crosby was only too happy to carry A.C. Clark along with him - from within the ranks of FDOC to the very top rung of the department's ladder.

As Governor, Bush later appointed A.C. Clark to the 8th Circuit Judicial Nominations Committee (JNC Appointment). Later, Bush would be unable to recall why he appointed Clark to a four year term on the Committee in response to questions as to why he would appoint a high school drop-out to such a position.

Clark had been with FDOC for years - as had Crosby - and worked at several institutions. During his tenure with DOC he made rank, only to lose it on more than one occasion. Once Crosby took office as Secretary, Clark quickly rose from Sergeant...to Major...then Colonel...to Assistant Warden...to FDOC Regional I Director (NW Florida). He rose through all those ranks from 2003 to 2006. Other "pals" of Crosby and Clark were also promoted over others with more time and rank. Clark was provided a huge home (described as a "Mansion") located on prison property and owned by the State of Florida.

Together Crosby and Clark raised hell in and around Tallahassee, within the FDOC and community. They threw lavish parties and orgies for FDOC officials and politicians on DOC property. Some turned into brawls, with attendees throwing punches at one another. When the media would try to follow up on the rumors they heard, most kept quiet, referring all to interview Crosby. He tried to keep it out of the media but was unsuccessful and several FDOC staff were arrested for the bar fights.

Crosby recruited semi-pro ball players to play for the FDOC softball team. They were hired to work as prison staff, worked no shifts but received paychecks like the rest, for playing ball.

A steroid ring was begun among staff working in the DOC. The tendrils of the drug ring ran from North Florida across the state to many institutions and originated in Egypt.

Clark was at the center of many rumors: that he used money out of an FDOC recycling fund to open a limousine service, that he was strong-arming other staff members to cover his shifts with threats of termination, covering-up

In mid-November, 2005 Crosby had to address the poor behavior of his men and women staff:

"Effective in mid November, Crosby told his top staff to begin spreading the word that employees arrested for an "act of aggression" would automatically be placed on leave while the department investigates the arrest. Crosby also told reporters in mid-November that additional policy changes will be issued soon that will cover other areas of employee misconduct on and off the job."

Crosby should have taken his own words to heart. He didn't know it then, but he and the others were already under intense FDLE and F.B.I. joint investigations for corruption, taking kickbacks and embezzling funds from the recycling program and misuse of inmate labor. It was later learned that the investigations were begun in 2003.

It is inconceivable that anyone committing such rampant corruption and abuses of power was without knowledge of the corruption ongoing within PRIDE, when he held a seat on the Board. He ignored all of the information I and others provided him with about PRIDE's state and federal violations, complaints of the formation of the spin-offs used for money laundering, wages and reduced wages of inmates, that also reduced the money taken in by the FDOC for room and board deductions from those wages. He ignored all of our requests and complaints...yet in 2005 when the IG's Audit on PRIDE was released, Crosby publicly stated that from the time he became Secretary and became a member of PRIDE's Board, he had reservations about the business practices, formation of the spin-offs and accounting procedures employed by PRIDE. He further alleged that he brought all of that to the attention of the Governor and Legislators. He knew how to "spin" the facts, for sure.

Throughout the scandals, investigations and a multitude of calls for Governor Bush to fire Crosby, he refused and instead had Crosby's back right up until February 2006. The formal investigations involving all of the corruption in FDOC were completed after the first of the year and A.C. Clark was arrested and Bush could no longer keep the lid on and ordered Crosby to Resign.

On February 10, 2006 Governor Bush appointed James R. McDonough as interim Secretary to replace Crosby. McDonough had been with Bush's Administration for the full length of his Governorship, serving as director of the Governor's Office of Drug Control. McDonough is a West Point Graduate, Author of "Platoon Leader" - later made into a popular film - and served proudly in the military, serving last in the European theater where he wrote the manuals on strategy and tactics that are still in use today.

McDonough took over with Bush's instructions to weed out the corruption and reform the prison system. He accepted his orders and went to work as always. Within weeks of taking over, McDonough fired many top officials, demoted those who had been promoted due to crony-ism and promoted those who had the skills to perform the duties assigned and had been passed over under Crosby and Moore. He charged department staff to remember their oaths and abide by them in dealing with other staff and inmates.

McDonough made a lot of enemies in his reform efforts. Most of those were the remainder of the "Good Ol' Boys" who had survived but were keeping their heads down.

I contacted Secretary McDonough shortly after he became Interim-Secretary, providing him with documents and information alleging corruption and violations of the PIECP program within PRIDE. I advised that I had provided the information previously to Secretary Crosby, to no avail. He refused to look into or investigate the allegations - even as a Board Member. Secretary McDonough replied immediately, asking if I was sure of my allegations, did I have documentation in support and did I have any suggestions on how the prison industries should be run by PRIDE, knowing what their Mission Goals were: training and job placement of inmates?

In response I forwarded several confidential documents outlining the corruption and efforts that had been made by myself and a prison advocacy group I belong to: (Little Ol' Ladies In Tennis Shoes - Florida LOLITS) and Kay Lee of Making The Walls Transparent (MTWT) to bring corruption in FDOC and PRIDE to the attention of Governor Bush and the media. I also included an independent plan for the revamping of PRIDE that would return the corporation to the Mission Goals. I advised that the Board had to be replaced with members appointed from both the commercial corporate and public activist arena's.

McDonough responded that he appreciated the input and documents and that he had ordered an investigation to be conducted by the department's IG and as soon as the report was completed he would provide a copy. As I awaited the report, I asked the Secretary if he planned on being at the upcoming (April 2006) PRIDE Board meeting and would I be allowed to attend? He promptly replied that yes, he intended to be there and as a member of the public I could attend.

I made the meeting, flying down from Indiana. Secretary McDonough could not make it to the meeting as he was in the midst of several near crises within the FDOC, but his General Counsel did attend. She spoke on his behalf and asked if I was present. Finding me there, she advised the Board that Secretary McDonough asked that the Board allow me to make a presentation to the Board as I had several grave concerns as to the PIECP program and PRIDE's business operations an practices in that program and those same concerns were mirrored by Secretary McDonough.

At the conclusion, I was given the courtesy of giving a presentation. I raised the issues of underpaid wages, use of inventoried products to fill PIECP orders, the contaminated foods coming out of their food processing plant, ethics violations by PRIDE President Edgemon and his son-in-law also working for PRIDE at the food processing plant involving the theft of ATL's equipment and materials and the formation of two for-profit corporations by his son-in-law that took the place of ATL's contracts and profits.

In addition I spoke to the use of inmates in the training program who were serving life or other sentences in excess of 20 years - voicing concerns of safety to both staff and inmates (allowing those inmates access to dangerous tools) and issues of avoiding overtime by adjusting inmate hours by removing some hours from one pay period and putting them on subsequent periods and the sale of prison made goods upon open markets without paying any PIE wages at all.

The Board thanked me and advised they would address my concerns and answer the questions at the next meeting in July. However, the Board was not aware of the situation involving ATL and the food processing facility and wanted Edgemon to explain the circumstances. Edgemon declined, stating that they were currently in litigation with ATL and he was unable to speak to the issues until the litigation was completed.

I attended the July meeting also and the Board had their internal auditor present to give a report on PIECP and how it was operated by PRIDE. In that presentation she stated that PRIDE had been reviewed numerous times by the NCIA and had been found in compliance. In answer to the wages paid to inmates, she answered that currently "all inmates working on PIECP orders/projects are paid the Florida minimum wage of $6.40 per hour." Again, she reiterated that under PIECP law, that was sufficient to meet the wage requirements of 18 USC 1761(c)(2).

I was allowed to respond to her presentation and again, pointed out that upon their website they claim to pay inmates "prevailing wages" as required by the law:

"The PIE Certification Program was created by Congress in 1979 to encourage states and units of local government to establish employment opportunities for prisoners that approximate private sector work opportunities. The program is designed to place inmates in a realistic working environment, pay them the local prevailing wage for similar work, and enable them to acquire marketable skills to increase their potential for successful rehabilitation and meaningful employment upon release."

The Board said they would further investigate my argument and address the issues in the next meeting in November. I attended that one also and PRIDE's "PIE Coordinator, Brian Connet was brought in and gave a presentation on PIECP. He gave a glowing number of statistics alleging that their training program through PIECP was turning recidivism rates around and reported many individual success rates. He again, mentioned that the inmate workers were paid minimum wage and that was in compliance with the requirements of the "1999 Final PIECP Guidelines". Mr. Connett was unable to stay and answer any questions posed by myself or the Board members. He was followed by a presentation given by Ms. Carol Tortarelli, then serving as PRIDE's Program Director for Mission Programs. She added more glowing reports to those provided by Connett about successful reentries by former offenders, but did not futher address PIECP.

At the conclusion I again gave a presentation that challenged the legality of the minimum wages paid by PRIDE when they were supposed to be paying prevailing wages - a substantial difference. The Chairman of the Board and two othr members turned to President Edgemon and asked," Jack are we in compliance on PIECP requirements by paying minimum wages?" His reply was a nod yes. When I again advised they were not only in non-compliance, but the failure to pay the proper wage rendered each product shipped across state lines a federal felony, Edgemon was asked again; "Jack are we or are we not in compliance by paying minimum wages to the workers?" His response that time was a verbal, "Yes."

(I traveled several more times to Florida to attend the meetings but was unable to convince the Board that the inmates were being cheated by paying them less than required...and by doing that, they were reducing their tax requirement of matching deductions for S.S. as employers and it also reduced the amount of room and board taken from inmate wages and turned over to the FDOC. I was talking and my words fell upon 12 sets of deaf ears).

In July 2006 Crosby and Clark both plead guilty to receiving kickbacks under an FDOC canteen contract involving Keefe Commissary Network and American Institutional Services (Earlier this year the owners of AIS were indicted, arrested and are awaiting trial for their parts in the kickback scheme. Keefe has not been mentioned after the original stories broke, and there has been no indication they will also face prosecution for their involvement in furthering the bribery scandal).

When Governor Crist took over from Bush, he kept McDonough on, citing his great work at reforming the huge FDOC.

From my initial contact with Secretary McDonough we exchanged many emails and had lunch at one of the 06 Board meetings in Orlando, discussing the issues surrounding PRIDE and their business practices. I told him I had learned that ATL was not the first private business "stolen" by PRIDE through PIECP and provided him with the names of the companies and facts as I knew them. In September 2007 the investigation he had ordered into PRIDE's operations was completed and turned over to him and McDonough resigned his position on the PRIDE Board (I didn't get a copy of that report until late 2009). In October 2009 McDonough called for Governor Crist to abolish PRIDE and return the operations of the prison industries back to the FDOC and in November he cited the fact that PRIDE 'had lost their way" in pursuing their mission goals and statement. In addition he demanded that PRIDE turn over more than $1 million deducted from inmate wages for room and board deductions, but PRIDE refused, saying state law allowed them use of those funds and McDonough countered that federal law says it rightfully belonged to his department and superseded state law.

A Senate Appropriations hearing was scheduled for January 8, 2008 to hear the proposals presented by McDonough and the FDOC on PRIDE. On January 7, 2008 James McDonough submitted an unexpected announcement that he was "retiring" from the FDOC as Secretary. I had traveled to Floria to be present at the hearing in support of the FDOC and heard the news sitting in my hotel room. I immediately emailed the Secretary and questioned if his retirement was a result of his battle over PRIDE. He stated it was his decision and the PRIDE fight had no effect upon his decision. However, since that time McDonough has been involved in several efforts to change the laws surrounding incarceration, to reduce incarceration and remove some inmates from prison and place them in facilities to address their addictions or mental problems. He has also called for sentencing alternatives to prison. So McDonough remains active in trying to change Florida's dependence upon mass incarceration and the costs in tax dollars that results in.

Throughout my conversations and communications with James McDonough he was always truthful - regardless of any personal costs to him for voicing those truths - and demonstrated a huge amount of integrity and concern. While Secretary he eliminated wasteful contracts, reduced the cost of canteen items for the inmates - state wide - and re-negotiated the inmate phone access contracts, reducing the cost of collect calls to family and friends from within the FDOC. He made many changes to professionalize the FDOC and return it to a department that was again respected - a hard task after all the corruption in the nation's third largest correctional system.

His ability to understand and realize the actions of PRIDE were violative and hampering rather than assisting a reduction in prison recidivism made him respond as he had always done, by correcting the situation and addressing the corruption that lurked within PRIDE.

Unfortunately the Governor and Legislators were willing to support McDonough's efforts of ridding the FDOC of corruption and crony-ism - but not PRIDE. When his attention turned to PRIDE (Legislator's cash cow) he had to be stopped. Inmates and most corrupt officers do not contribute to campaign funds - PRIDE and their lobbyists do - so reforming the FDOC was okay. He had been so effective at rooting out all forms of corruption within FDOC that he simply could not be allowed to pursue the same attack upon the source of most Florida politician's lobby funding through PRIDE...and in his absence corruption and huge sums of money made off of inmate labor, continues as before; growing more insidious and being exported to other states every day.

In the next segment we'll discuss the NCIA and their impact upon the violations within PIECP.

Some have asked that I provide links to the other segments in this series. Below you will find them.

INSOURCING - A new concept about private sector job losses
INSOURCING-II-The Wheel of Money and Sorrow...
INSOURCING-III - Corporate Wheel of Profit Rolls On...
INSOURCING-IV - More Profits Through Monopolies...-
INSOURCING - The Real Reason your jobs MUST go to prison and what they do with the money saved...
INSOURCING - Why this Investigative series began...
INSOURCING - Florida Corruption Exposed
INSOURCING- Violations-under-PIECP

Insourcing - Why this Investigative series began...

by Bob Sloan

Sun Nov 21, 2010 at 04:13:31 PM PST

I have been exposed to both prison and prison industry over my lifetime. I personally experienced what it's like to be falsely arrested and behind those fences and working in prison industries. Because of that I was open to questions posed by inmates working where I had once been. What I discovered is not only unbelievable, it is shocking and hard to stomach.

In 2002 I was unfortunate enough to have to return to Florida in response to an old probation case I had there in 1981. My attorney said no problem we'll go down and straighten this out and get you right back to Indiana. Well that fiasco lasted nearly two years and I was finally able to resolve the case and return to my home. I won't go into large detail on this, as it isn't important to the issues involved in this series.

What is important is that during my stay in the Florida correctional system waiting on the court to rule, I was assigned to work in the PRIDE prison industry at Union Correctional Institution. Thankfully I was only there for a brief few months before coming home, but that was enough time to be dumbfounded as to the products made, the private sector customers purchasing the products and other disquieting observances.

Bob Sloan's diary :: ::
Due to numerous requests here are links to the previous segments of Insourcing:

INSOURCING - A new concept about private sector job losses
INSOURCING-II-The Wheel of Money and Sorrow...
INSOURCING-III - Corporate Wheel of Profit Rolls On...
INSOURCING-IV - More Profits Through Monopolies...-
INSOURCING - The Real Reason your jobs MUST go to prison and what they do with the money saved...
INSOURCING - Why this Investigative series began...
INSOURCING - Florida Corruption Exposed
INSOURCING- Violations-under-PIECP

While there I began to ask questions about the industry and how they could sell prisoner made products to the public? My questions were not well received and the answers provided did nothing to dispel an uneasiness about the legality of what was going on.

The court finally ruled, the case ended and I was released and sent home. I immediately filed a civil case in Indiana's federal court for my false arrest (outdated and expired warrant) in '02 here in Indy on the Florida case. Due to the legal mix-up I had lost two businesses and we were out more than $35,000.00 in attorney fees - not to mention two years of my life wasted on a "mistake".

In mid 2004 while I was in the midst of litigating the false arrest case, I received letters from some of the inmates working in the PRIDE industry where I had briefly been. They were posing questions about the prison industry's PIE program. They were still being worked to manufacture goods for the private sector under the program and asked what the program was, knowing I had asked these same questions when I was among them. They also wanted to know if their work was legal and if it affected work on the outside.

These were good questions and as a prison rights activist (yes, I was that before and after my trip back to Florida), I began to research this PIE program and found it is actually the Prison Industries Enhancement Certification Program (PIECP) run by the federal government. That was easy enough to find out.

I discovered the program was run by the Bureau of Justice Assistance from within the U.S. Department of Justice's Office of Justice Programs. I copied down the contact information for the Bureau of Justice Assistance and sent off a cursory email, asking about the particulars of the program and information on products manufactured and possible impact upon private sector jobs. In response I got a brief email answer advising me that I would have to contact the National Correctional Industries Association (NCIA) for information on the program.

The foregoing response left me scratching my head, wondering why I needed to contact a non-profit corporation for information on a government run program. Once I'd become nearly bald - from the scratching - I sent off a similar request to the NCIA. At the same time I visited the website operated by the NCIA and tracked down the actual PIECP program Overview and read it. That left me with more questions so I read the entire 1999 Final PIECP Guidelines and finally downloaded it to try and understand it. The formatting was all screwed up and it was difficult to determine where one topic ended and another began.

More confused by my reading and lack of comprehension about this PIECP I made copies of the guidelines and sent them to the prisoners who had contacted me. I explained what I knew about the program and that the information they had related to me in their letters was not exactly the way the program read. I asked them to provide more information and I'd find the time to look into it.

The next letter I got from these inmates in Floria advised that they had been "caught" in possession of the PIECP Guidelines by industry supervisors. Two of them were terminated for possession of contraband and a third had been suspended without pay for a week. The guidelines I'd sent were confiscated and destroyed.

Then I was really confused trying to understand how a federal program guideline used to work inmates could be considered "contraband" by prison authorities when found in possession of the workers. I contacted Florida authorities and was informed contraband was just about any item not issued by the state or on an approved list of items inmates were allowed to have in their possession.

I contacted PRIDE headquarters in Clearwater, Florida and asked them about the program. Again I was referred to the NCIA for answers to my questions. Okay, I was starting to get really uneasy as well as peeved at the difficulty I was having just getting reasonable questions answered.

Before contacting the NCIA a second time, I sat down and read the PIECP guidelines through and through - three times. From what I could determine there were nine mandatory criteria that had to be met prior to the start-up of any prison industry program. The state department of Corrections had to apply for "certification" in the program to participate and one factor that jumped off the page was the requirement that any inmate working for a prison industry under PIECP must be paid the prevailing wage for his/her labor! Okay...that was just not happening in PRIDE's industries. So I had a valid question of non-compliance. My wife and I both contacted the NCIA and explained that our reading of the document provided at their site informed that inmates in the program were to be paid the prevailing wage for their work. We explained that this was not happening in Florida and asked them to initiate a review of the program's operation in that state.

We received immediate and short responses. We were informed that a completed review of PRIDE's industries by the NCIA was performed in 2004 and they were in full compliance and paying the inmates the proper wage.

Before I could study on this disparity between the "official" finding and what I knew was going on - having been there for a brief period of time and seeing it first hand, I received a phone call from a businessman in Atlanta, Georgia. He had read some of the articles my wife had published about PRIDE on one of the activist sites and wanted to talk to her about a situation he was involved in with PRIDE. She turned the phone over to me and from that moment on, my life was completely changed - as well as all my preconceived knowledge about corporations and the U.S. prison situation in Toto.

The man who called me was the owner of a food processing business in Atlanta (ATL Industries). He had been approached by PRIDE marketing personnel in 2001 and informed he could double or triple his profits by partnering with PRIDE under the PIECP program and using inmate labor and PRIDE's facilities to process his bulk meat products. As a business owner, the prospect of increasing profits so substantially attracted ATL to further discuss the use of inmates in food processing. ATL was told that using inmates was legal under the PIECP laws and to participate they needed to transfer all of ATL's equipment to the Florida Food Industry location in Raiford, Florida. They would be required to provide the raw bulk meats, recipes, procedures and provide personnel to train the inmates and prison industry staff on the proper preparation and disclose company proprietary technology to PRIDE so the finished products would remain the same as those previously made in the private sector. In addition PRIDE needed a complete list of ATL's customers for purposes of shipping the finished goods.

PRIDE negotiated and in 2002 ATL moved all of their equipment to Florida and began operations under a contract with PRIDE. There were minor problems from the beginning, but that's to be expected when new partnerships were getting off the ground. ATL provided a supervisor to oversee the operations in Florida and for a while business progressed smoothly. ATL's gross sales of goods was approximately $20 million annually during this period.

After two years of the three year contract, ATL discovered several bookkeeping discrepancies and when they approached PRIDE about the matter, asking for an independent audit, ATL was thrown off the industry and prison property. PRIDE filed suit against ATLand claimed theyowed them money.

PRIDE seized all ATL equipment to offset their claim of money owed, they hired ATL's onsite supervisor away from ATL and continued to manufacture their products under ATL label and sold them to ATL's customer and client list as if the business was operating normally.

Trying to keep ATL open and liquid, the owner paid what amounted to extortion to get some of ATL's products released. At the same time he offered to post a non-refundable surety bond to guarantee PRIDE that if they were correct and ATL owed them money, they would get it. In the meantime he wanted his products to continue being made and shipped. PRIDE took the money he sent, refused to allow an audit or to accept the surety bond and instead went after the owner personally.

PRIDE's President, Jack Edgemon's son-in-law was involved with the food processing facility and once ATL was refused entry to the plant, he financed the formation of two for-profit corporations in Florida and picked the former ATL supervisor to head them both as President. The companies took the place of ATL and continued to operate and realize the profits that should have gone to ATL under the existing contract. They used the materials, raw bulk meats, packing and dry ingredients as well as the equipment belonging to ATL and kept the profits made.

I became aware of this in 2004 and went to work researching the situation, reading some of the court files available (PRIDE had secured a "gag order" in the civil case, so much of the information was unavailable.

In 2005 my research revealed that ATL was not the first private sector company to be taken over by PRIDE in the same manner. There was Fresh Nectar (a company partnered with PRIDE to process and ship citrus and fruit juices and citrus products), Man-Trans, llc (a company that refurbished transmissions and engines), Custom Converter Sales, Inc. (CCA refurbished transmission torque converters) and a second company that was also owned by the CCS, Valueline Converter, Inc. In each case PRIDE had done the same thing; partnered with the companies, requiring them to provide all of their equipment, stock, materials and unfinished products and technology to PRIDE and relocate behind prison fences. Once this was accomplished, within months PRIDE would throw the company owners off the property and instruct FDOC to not allow them back onto prison property, keeping the equipment, materials unfinished and finished products. PRIDE then continued the operations, selling the products to the customers of the private partners. PRIDE's attorney then filed suit alleging money owed and tied the companies up in court until the owners ran out of money to fight the legal battle (they all had no way of generating income as PRIDE had all of their equipment and stock).

I advised ATL and their attorney of the other companies and sent them documents demonstrating that this appeared to be a normal business practice of PRIDE.

During this same period 2004-2005, PRIDE came under investigation by the Florida Governor's IG office. The state wanted to audit PRIDE's books and PRIDE refused, arguing that as a private corporation they had no duty to open their books. After a long battle PRIDE was forced to allow the audit and in 2005 the IG issued a report that was scathing (Audit #2004-4). PRIDE had created nine illegal spin-off companies that was owned and operated by PRIDE Board members and/or PRIDE's CEO, Pam Davis, CFO Robert Smith or family members of the Board members. Money from these spin-offs was being dumped into a single account mixed in with the non-profit income of PRIDE. PRIDE's Board met and passed resolutions to loan these spin-offs as much as $37 million dollars (to themselves, really) with no loan repayment schedule or clauses. They then went to their spin-offs and received the money and paid themselves huge salaries, bonuses and in general used the money as they saw fit.

PRIDE then handed out no bid contracts to the spin-offs to do PRIDE's work and issued huge checks to the corporations for the "work". In the end, the CEO, President and several other PRIDE personnel were forced to resign their positions. The state of Florida did not pursue criminal action or inform the IRS of the manipulations by a registered 501 (C)(3) exempt corporation. PRIDE was forced to sever all ties to the spin-offs and reclaim the money paid out to those spin-offs. Of course, the money was gone, spent or otherwise dispersed prior to the report being issued. In the end PRIDE was able to recover less than $500K of the multi-millions it had loaned out.

In the next segment Friday, I will include links to the previous series and segments that preceded this one and will conclude the PRIDE saga and turn to the multiple violations occurring under PIECP and how the program participants are so easily able to take our jobs - and get away with it.

Happy Thanksgiving to all Americans. Enjoy your Holiday and I would ask that you add a little something in your saying of grace this year to include those who are away from friends and family overseas in our military - and sitting behind bars making the equipment the military uses. Thanks

INSOURCING III - Corporate Wheel of Profit Rolls On...

Corporations depend upon labor for their manufacturing and service industry needs. To keep the labor pool full to the rim, they develop ideas for new laws that benefit them and contribute to access to more and more individuals, some of which are highly educated and well trained with skills that will benefit prison industry operations. To this end they partner with organizations and politicians sympathetic to their needs and desires.

The machinations in the foregoing paragraph are accomplished over and over again through the American Legislative Exchange Council (ALEC) and their corporate membership. Corporate representatives meet with ALEC's conservative lawmaker membership and write "model Legislation" that is then taken back to states where the member lawmakers attempt to attract sponsorship and eventually pass the legislation into law. One a law is enacted and put in place, other machinery awakens and goes to work.

A violation of the new law is discovered, the person committing the "crime" is arrested and the actual "Wheel of Sorrow and Money" begins to turn and generate profits for the corporate interests. First, the arrestee is provided an opportunity to be released pending trial by posting a surety bond to get out of jail.

ALEC's corporate member, the American Bail Coalition (ABC - it's Executive Director serving upon ALEC's Public Safety and Elections Task Force) is there to provide bonding and of course, profit from the "service" provided to the arrestee. Many state's and the federal government have implemented a pre-trial release program allowing pre-trial release of defendants, but ALEC vigorously fights against these programs to keep private sector bonding intact and making money. This is a a very important arena for ALEC, as can be seen at their Model Legislation page on Public Safety page. ALEC has no less than 13 proposed legislative bills dedicated to bail and bail recovery issues. No mis-understanding of the influence wielded by ABC within the Public Safety Task Force. Of course reading about any of this soon to be proposed legislation is not possible, due to the secretive nature of ALEC. You must be a member to access their model legislation pages.

However there is a way to discover some of what they propose by access to proposed legislation through other sources. For instance here is a two part clip on a presentation given by the ABC to ALEC lawmakers on Model bail bond legislation proposed by ALEC (second part here). For those who watch these video presentation and wonder what the document contained in the "package" given to lawmakers was, here it is. "A Plan to Reduce Prison Overcrowding and Violent Crime - “Conditional Post-Conviction Release Bond Act”. Earlier and detailed proposed legislation on this issue is found here.

For those too busy to watch the video or read the proposed legislation, here it is in a nutshell: the American Bail Coalition makes millions off of pretrial bonding. Now they want to make millions more off the same pretrial defendants - who were convicted and sent to prison - once they are up for early release. How? The ABC is promoting legislation that would allow states to require those up for release to get their family or friends to post a post-release surety bond, guaranteeing the state that they won't re-offend if released early. Of course the surety bonds issued would require a minimum 10% "fee" paid to the bonding company for the posting of the bond. The ABC Executive Director Dennis Bartlett suggested at one of the legislative presentation that lawmakers should first check to see if their state could implement this bonding system through administrative means, saying legislation takes longer and may not be as successful as just issuing and edict to allow bonding of released offenders.

So ALEC corporate members make money immediately on bonds issued to release pretrial defendants and they wish to make more on the back end through more bonding initiatives. Following arrest and bonding a trial is held - or pretrial deals made - and an offender is found guilty. Once that occurs, the sentencing guidelines enacted by ALEC model legislation kicks in and the offender is often times sentenced to the harshest sentence allowed under the guidelines, and returns to jail to await transfer to the state prison. Many jails are now privately run facilities outsourced to the likes of ALEC members Geo Group and CCA. The state or county pays these corporations a per diem for each day the convicted offender is housed there. Corporations providing food and canteen products to the inmates also make profits. Any phone calls made by the offender are handled by AT&T or other telecom providers, and the costs of these collect calls are as much as 300% higher from jail facilities than they are when made from pay phones. The convicted offender's family and friends pay these outrageous fees. The jail facility receives a "commission" from the telecom provider for allowing the placement of their equipment within the jail. Within many states county and municipal jails now charge inmates for their room and board, assessing a daily fee for incarceration. This charge is taken out of the offender's account and if he/she has no money, a lien is placed upon the account and any money received into the account is then debited first to pay for the charges and remaining funds can then be used by the offender.

Once bed space is available at the prison for the offender, he is put on a bus and transported from the jail to the prison. Often times this transfer is made using private transportation companies that contract to move prisoners around the state and country. More corporate profit from the prisoner.

Once at the prison the offender - now called an inmate - is put through orientation and medical screening. The medical department is also operated by a private corporation such as Prison Health Services, now called PHS Correctional Health out of Tennessee. Your tax dollars pay for this medical screening and any subsequent use of medical care or treatment needed by the inmate. Inmates are usually charged a co-pay of from $4.00 to $6.00 and this is turned over to the private contractor.

Following orientation the inmate is moved in the "general population" area of the prison for permanent housing. Once there he/she is put through another screening process to determine what job will be assigned to the inmate. IF he/she has skills particularly needed by the prison industry located at the prison, the inmate is assigned to the prison industry. Otherwise he/she is assigned to another job within the prison.

Again, phone calls are handled by the same or another telecom provider that is contracted with the prison operator to handle communications. The fees are usually higher from prisons than they were from jails (security is quoted as causing the increased rates) and again, paid for by the person or family called by the inmate.

The prison authority establishes an account for the new inmate. Banking has also been outsourced and privatized and the corporation with the contract is allowed to charge a monthly fee of between $4.00 and $6.00 for handling the account - regardless of whether or not the inmate has money in the account or not. Money sent in to the inmate can no longer be sent as money orders, personal checks or cash through the mail directly to the inmate or prison where he/she is housed. The inmate is provided "deposit slips" that he/she must send to friends and family who wish to send them money. They have to enclose a money order and send it with the deposit slip to the address established by the bank and prison authority. Once received it is deposited in the inmate's account - after a fee of from $.50 to $2.00 is taken out for "handling" by the bank.

Money that is left after paying the above fees is available to the inmate to purchase clothing, hygiene and other items he/she desires: food, snacks, tobacco, etc. The commissary where these items are purchased are owned and operated under contract between the prison authority and a private corporation such as Keefe Commissary Network. The only items available to an inmate must come from this provider. Family and friends can no longer send food, clothing, hygiene or other items to an inmate - everything an inmate buys or is allowed to have in his/her possession is purchased through the commissary provider.

Tomorrow I will continue this sad tale about the corporate profits from inmates - both as inmates and as a source of cheap labor.

INSOURCING II - The Wheel of Money and Sorrow...

Previously I discussed PIECP and how it is being used to increase prison labor while eliminating private sector jobs to reduce labor costs, overhead and increase profits. In this and the following segments I'll discuss the entire length of the money chain from arrest through bonding and incarceration to release. I'll provide the names of the corporations, organizations, and private businesses who make large profits off of arrests and incarceration and those who profit after release from reentry program funding and donations from you.

Today I want to explain the machination that make insourcing possible and who is involved, how they're involved and who funds these efforts. To understand the concept I need for you to form a mental image of a wagon wheel. This wheel is composed of: an outer iron rim, spokes that radiate and carry the weight and pressure from the rim equally to the outer hub that holds it all together. At the center of the hub is an inner hub that fits the entire wheel to an axle.

Without any one of those four necessary components, a wheel will not function: no spokes it collapses, no rim and the spokes will collapse without something to hold it together at the outer end. No outer hub, and the spokes dangle uselessly from the rim and no inner hub for an axle and the entire wheel has no purpose and could not function at all.

These mental images demonstrate that for a wheel to work properly there must be a way for several parts to work cohesively to perform a particular task, in this case roll while distributing weight evenly. This is also an apt description of how insourcing works.

For insourcing to work correctly for corporations, lawmakers and prison industries, everything must work together toward one goal: using inmate labor to produce products or provide services to consumers and other companies. When this is done properly, corporations and prison industries make lots of money and thousands of private sector jobs are eliminated.

In this case - back to the wheel - the "axle" represents the U.S. Government's Prison Industry Enhancement Certification Program - 18USC 1761(c). It fits nicely into the inner hub which in our wheel represents the National Correctional Industries Association (NCIA). NCIA is the connector between government program and prison industries and compliance with that program's laws and mandatory requirements.

The solid space between inner and outer hub represents the American Legislative Exchange Council (ALEC). The Outer hub represents lobbyists, donors and affiliated sponsors who fund and support corporate and key legislative interests. The spokes radiating away from the hub are the U.S. Corporations and state lawmakers represented by the lobbyists and sponsors. The rim represents companies, associations and organizations that profit from arrests and incarceration (other than housing, care and labor) and serve as magnets that directs individuals to the wheel and transforms them into inmates. With all parts working in unison and smoothly the wheel rolls along the ground, accumulating inmates.

Attached to the axle (PIECP) is the authority and weight of the U.S. Department of Justice, Office of Justice Programs (OJP), Bureau of Justice Assistance (BJA) and the Surface Transportation Board housed under the Department of Transportation that enforces the Interstate Commerce Act (this is important since PIECP statutes were created under the Interstate Transportation Act addressing interstate commerce involving prison made goods).

As the foregoing demonstration shows, the full weight of several United States Agencies and Departments - from the Secretary of Commerce through the DOJ, OJP to the BJA - bear authority for the PIECP program, that connects to our wheel. In reality this is the relationship between the highest level of our government, through a federal program to prisoners - state and federal. Interspersed within that link are private corporations, lobbyists, lawmakers, ALEC and the NCIA...all with a financial interest involving inmates (housing, banking, phone rates, medical services, food service and labor).

Tomorrow I will explain how our "wheel" operates in a most efficient manner to generate corporate profits from initial arrest through eventual release from prison. You won't have thought about the connections before and will be surprised - and angered to learn just who all profits and how.

Corporatocracy - Conclusion

"Merchants never have nor ever will honor boundries, they owe no aliegence to country. Profit is their ruler driven by out and out greed for power," is a recent quote from James "JD" Hall. JD has a dislike for government and politicians in particular, for what both have done to sell our rights and freedoms to the highest bidder. We disagree on some topics, but agree on the issue that most U.S. Corporations lack loyalty to the country that made them wealthy and have a lack of concern about what their greed is costing us as citizens.

The taking of one's freedom is an act America has always fought against in wars on other continents in every era - including the current one. Our neighbors are fighting and giving their lives in Iraq and Afghanistan as this is written, battling for populations of those country's freedom from tyranny and oppression. We have always expressed views that such battles are just, proper and necessary to protect human rights and promote our values and democratic principles on the world stage.

In World War II as the world fought for just such causes in the European theater, many corporations - U.S. and international - fought alongside the Allies. Some fought on both sides in the interest of amassing huge profits, either not caring who won or hedging their bets by supporting both sides. Some of these corporations include IBM, Coca-Cola, Standard Oil and even General Motors and Ford (See footnote). In spite of the atrocities committed against all classes by the likes of Hitler, these corporations were willing to provide their products and services to this horrible regime. Their willingness to do this assisted in the extermination of minorities and other people Hitler had decreed were sub-human and thus had no place in any society. Products made by these corporations helped the German people live comfortably while they waged war against the rest of the world.

This "assistance" by such corporations enabled Hitler's Regime to succeed far longer than it would have in their absence. German workers built Opel cars for GM and others for Ford that helped Germany's economy during the war years. IBM developed and leased the "punch card" system used by Hitler to organize and keep track of prisoners in concentration camps. Following the end of the Third Reich, most German owned and held companies and corporations were prosecuted for war crimes because they had assisted Germany throughout the war. Those U.S. and International corporations that participated and also assisted Hitler were never prosecuted - or their duplicity addressed or discussed.

In light of the foregoing the quote from JD Hall is corroborated - corporations don't honor any boundary and have no allegiance to citizens or governments. They exist and operate on one simple principal: satisfy the greed demanded by owners, CEO's and investors. If public harm is committed by those pursuits, it is simply considered collateral damage in a war for profits. When public harm occurs, individuals who made the decisions or committed the acts that caused death or injury, are allowed to hide behind the corporate veil to avoid prosecution; "it wasn't me that did it, it was the business...and businesses and corporations that own or operate them can't be put behind bars and are instead "fined". The human or humans responsible for any illegal acts committed by their corporations or companies are allowed to remain free to do it all over again.

U.S. Corporate evolution has only been controlled by government rules, regulations and federal laws over the years. More and more companies have been able to manipulate all three to the point that they now dictate their own rules, regulations and challenge any law that remains to restrict their actions through litigation against the very government that sanctions their existence. Authority and oversight has been transfered from government and it's agencies to corporations through such litigation. Think about the meltdown of our economy, the travails of Enron, the ponzi scheme by Madoff. All of these acts that harmed many of our investments, retirement accounts or 401(k)'s were supposed to have been prevented by government regulation or oversight. It didn't work because corporations involved and the lawmakers they bought along the way weakened all controls until there was virtually no regulation left in place. They knew there would be an eventual collapse or bankruptcy in the future that would impact our society's workers and individual investors and create housing and mortgage chaos, but again that would simply be collateral damage. As long as the participating lawmakers and corporate interests made money until then, they were satisfied.

Enron and the collapse of giant banks, investment and mortgage companies is the reason privatization of government duties and responsibilities should never have been allowed in the first place. We have to realize that with a dwindling consumer base - that is, we all have less money to spend on trivialities, comfort items, vacations, luxury items - corporate sales have decreased markedly. With an ever increasing number of jobs in prison or overseas more of us are without employment and less money to spend. Simple economics of supply and demand apply, and we have less demand for certain items. In response to this dilemma, corporations have looked around to find another source of income to offset the loss of sales. In the mid 90's they found that source: tax dollars. The way to get their hands on that endless supply of money was to promote privatization of government duties. They instituted a campaign - that continues today - of advertising corporate abilities to perform the duties of government in a more efficient and cost effective manner. We were/are informed they can do it better for less. Many were taken in by those promises and supported privatization across the nation.

Since then reports, studies and reviews have consistently shown that the promises made have not resulted in substantial savings to taxpayers. Privately run government has not lived up to the expectations of savings we were promised. This is true of prison operations, recidivism, prison food service, healthcare or banking. What did happen was the transfer of money paid into state coffers from taxpayers went to corporations. Prison staff wages declined as did the qualifications of those hired for those duties. Corporations cut corners where governments dared not make such cuts. Though those cuts would be prohibited by government run programs, the government allowed and condoned just that when done by corporations. Because prison privatization involves housing and care of those individuals guilty of the commission of crimes, the public simply shrug and wonder why others in society care. "I mean, Duh...they're criminals!" The result of this attitude and the attendant oversight because of it has serious side effects.

Florida is one of the leading states in privatization of government programs. This past week an example of how this attitude impacts upon another segment of our society: Juvenile detention, surfaced. Staff at the Thompson Academy were accused of brutalizing the children in their care. Thompson and other private corporations are funded by the state of Florida to the tune of $74 million a year for housing juvenile offenders. This story is literally horrific and beyond belief. It demonstrates exactly why privatization is dangerous and how profits are "earned" by cutting corners. The children affected will live the rest of their lives with terrible memories. When we consider that Florida incarcerates juveniles at nearly twice the rate of other states and 80% of those children are housed and cared for by private corporations, we begin to realize the impact upon our society from privatization. If nothing else you should read this story and understand the plight of both children and adults subjected to the will of private corporations in the name of the state.

Allowing corporations to partner with lawmakers to propose and enact legislation that makes the punishment for a harmful act more severe or to impose a longer sentence so that a profit can be made over the length of a sentence imposed by a government court, is in a word, wrong. Today private prison corporations like Corrections Corporation of America, Geo Group and Cornell Corrections have their hands in every phase of corrections - from proposing stiffer laws, longer sentences, reduction in paroles granted, to housing of state and federal prisoners. All for a profit. Other corporations, though not as powerful as CCA and Geo, operate on the prison operations periphery, capitalizing on providing food service, healthcare, commissary and transportation involving prisoners. None of these "services" are provided by a sense of civic duty or responsibility, rather they are provided to make money for the private interests of those companies or corporations.

One example of the manipulation of laws and legislation to benefit corporate interests related to imprisonment, is the subject of financial contracts; loans, credit card debt and mortgages. Currently there is a nationwide push by financial corporations to change long standing laws against debtor imprisonment. Before we became a country we were a collection of immigrants who came here to escape oppression of religion and imprisonment and forced labor for debts owed to influential land-owners and barons of Europe. Here in the U.S. debtor's prison continued until abolished in the 1800's.

Today thoughts of those terrible times and issues that brought our founding fathers here have been all but forgotten. With the financial melt down that is ongoing, corporations are proposing a return to imprisonment for unpaid debts. Debt collection agencies and corporations have pushed for laws allowing them to seek incarceration of indebted individuals to make them pay up. Most of us are struggling to keep up with our debt today. This means less and less money available to pay debts we owe that aren't directly related to keeping food in our mouths and a roof over our heads. Credit card, medical and in some instances mortgage payments. This results in more losses to corporations and they've begun reverting to the use of government courts to in effect resurrect debtor's prisons as a means of collecting. Again we see a correlation of prisons and profits sought by corporations and, government involvement in helping the corporations to recover lost profits. Bankruptcy replaced debtor's prison in the 19th Century but no longer suffices for corporations that want their money.

Governments should not shirk their responsibilities where prisons and prisoners are concerned. Those incarcerated are there because they broke laws imposed by the government that sent them to prison in the first place. Transferring state responsibility for housing, health, feeding and caring for those incarcerated to private interests is a way for a government to avoid liability. If/when problems arise involving healthcare, food illnesses, injury or death that may result from improper acts of others, the government can point to the contract they have with private corporations providing those services, and claim no public responsibility, putting the onus upon the corporations. In that way if a court case ensues, no "human" goes on trial, only the corporation involved. Liability falls upon the private entity and any adverse decision results in a fine rather than imprisonment of the perpetrator - regardless of the circumstances of the case.

Enter the private sector partnerships between prison industries and private corporations and the present landscape that allows private corporations to own prison and detention facilities across our country. The taking of a citizen's freedom for acts they have committed is the responsibility of the government that created and enforces the laws that were broken. Corporate interests of profit making should never be involved in determining, proposing or enacting laws that the government applies to it's citizenry. Laws are to be enacted and enforced to provide an acceptable course of behavior by the population to protect the well being and safety of the population from those who would cause them harm.

As I previously wrote, ALEC, CCA, Geo Group and others that share similar interests and goals have/are directly involved in manipulating our laws to increase profits while pursuing the parallel goal of usurping the authority of governments under which they operate. Witness SB 1070 in Arizona - as discussed in a previous segment. Corporate manipulations in that case impact upon our elections (campaign funding, funding of election ads by hidden corporations and willing participation by government paid staffers to lobby for special interests. These staffers receive government pay and increased personal wealth from those they lobby for simultaneously), prisoner housing, use of increased taxpayer funding for incarceration and detention. The unspoken issue underneath it all is the use of prison labor to also increase profits for those making the huge campaign contributions. As discussed previously, the use of prisoners to manufacture goods, products and provide services for private corporations results in the loss of private sector jobs, and we all know who that hurts.

The current situation within the U.S. mirrors a similar time in our history - the 1930's when we were experiencing the "great depression". Then President Roosevelt proposed the WPA to put men and women to work on government projects and to improve infrastructure in the U.S. Few people are aware that there was an attempt by the U.S. corporate elite involving corporations such as Goodyear Tire, J.P. Morgan and Dupont in 1934 to take over our government. These corporate conspirators sought out a former Marine Corp General that had been used by our own government to secure foreign markets for corporate interest - despotism in it's truest form - to assist in their fascist take over of the U.S. General Butler turned out not to be their "man" for the job. He refused and testified before a Congressional Committee about the conspiracy, putting an end to the attempt. Of course, these corporations paid no price for their attempt at corporate tyranny, all of them are still around and part of today's problems involving corporate greed.

Today we face problems similar to those faced by Roosevelt and our ancestors of the 1930's: we're experiencing a recession bordering on another depression, our President is proposing the funding of infrastructure improvements to put people to work, unemployment is at record highs, state and local governments across the country are having to make tough budget decisions and corporations are again looking for ways to keep their profits increasing annually. Instead of assisting President Obama's efforts, those of the conservative right are fighting those suggestions vigorously. They are holding up every measure to help those on unemployment and while arguing for jobs they hold up voting on any proposed legislation to create jobs. This alone exemplifies the crossroads we have come to in America. We are clearly divided on this and other important matters and issues, where we should all be unifying behind government efforts of recovery instead of infighting on each side of the issues. One side wants improvement and the other wants us distracted, so no improvement will be had and they can then "blame" the other side for such failures. In the simplest of terms it boils down to this: One segment of our government and we as citizens are now aligned against another segment of our government aligned with big corporations in a giant social tug-o-war. While this goes on, very little is being accomplished. In the meantime the rest of the world passes us by in education, healthcare, global warming and other technologies. This class battle has brought us to a stagnating standstill. Corporations have the benefit of being able to diversify and expand their operations overseas and keep business going, while here we're mired in BS created by them. ALEC joined suit and they now have many international members from England and other countries who share their conservative views. As citizens we nor our government have that option and remain here fighting the battle begun by corporations and their partnered lawmakers.

Instead of privately conspiring to take over our government, huge corporations such as Koch Industries with the assistance of PAC's such as ALEC are funding a "grass roots" attempt to convince all of us that we'd be better off with corporations running everything. They label their effort as a return to "conservative values" - since we Americans are big on labels.

These efforts on part of corporate interests fail to also inform us that the use of prison labor and outsourcing of our jobs to foreign countries were their ideas in the first place. That the unemployment rates of today are directly attributable to them. While we try and put ourselves and our neighbors back to work, these corporations are busy moving every job out of reach, while professing their concepts will put people back on payrolls. Most of what they profess and the ads they fund that inundate our advertising is nothing but disinformation designed to make us believe they have our best interests at heart while they reach into our pockets and extract more and more of what money we have left. I urge all of us to not be taken in by this hyperbole. Nothing these corporations and their affiliated conservative lawmakers do is in our best interests. It is in the interests of making the most money possible off the dwindling amount of funds left in our pockets. Sales are down everywhere, jobs are non-existent and corporate owners and investors are looking for ways to continue their past expensive lifestyles in those markets marked by dwindling sales. With the loss of sales and income, corporations see a genuine threat to their control of lawmakers through huge campaign and lobbying contributions. Less sales means less money to throw around at politicians to keep them under their umbrella of influence. They see an end to their control of Congress and state legislatures and are doing everything possible to forestall that loss of power.

Let none of us be taken in by the rhetoric about keeping tax breaks for the richest among us in place - deep down we all know who that benefits, and it definitely is not us as workers or consumers. These tax breaks have been in place for a decade now and no real jobs were created during that period. What makes any of us believe that if we leave these tax rates in place it'll be different this time around? Nothing. The middle class is disappearing, more quickly with every passing year and is a direct result of these corporate giants taking more and more from us and keeping it. The richest among us already have everything they want and spend less on personal, household and other merchandise now than the typical middle class household does. Unless that money the upper class has is used to increase manufacturing, production and thus sales, we will cease to be a competitive industrial country. This is already happening at an alarming rate. Businesses crying for money to expand and hire new workers are pleading with financial institutions owned by those I've listed throughout this series. Those that have the money refuse to loan it for such expansions because they fear it will be lost in these economic times. So we are at a standstill and giving these despots more of what we have left should be unthinkable.

So, in conclusion...we've learned that corporations have the will, desire and ability to take the place of government. They truly believe their need and pursuit of profits far outweighs the needs of society. That through fear we can be manipulated to sacrifice our comfort, money and representation to support their objectives and that those objectives can be accomplished through media manipulated disinformation. Through contributions to lawmakers susceptible to campaign "bribes", legislation and laws can be created that help to impoverish and control us.

We've also learned that those involved in assisting corporations to invoke "corporate law" to replace existing laws authorized by our government, are willing to suggest modifications to our Constitution to accomplish their will. Candidates who represent themselves as "conservative" now challenge the separation of church and state provision of the 1st Amendment to the U.S. Constitution. Religion, especially that identified as the conservative right, have sought and gained much headway in participating in our electoral process. Many candidates are identified by this group as not qualified to hold elected office because of their religion or beliefs. Think those with these beliefs are somehow not related to corporations? You'd be wrong. Corporations are funding their challenges and encouraging them to ask similar questions and challenge other Constitutional Amendments, such as that which pertains to citizenship for all born in the U.S. Many conservatives - again supported by corporate contributions and funding - now suggest that the 14th Amendment also needs to be changed to disallow the children of illegal immigrants from being considered U.S. citizens if born here.

The same cabal and their corporate supporters want changes or Amendments to the Constitution regarding sexual preferences and marriage. I won't go into those arguments here, that would be too demeaning and serve no real purpose - similar to the arguments presented against gay marriage and gay rights.

We must understand that there is a force out there that is pushing for serious changes to our democracy, way of life and societal concepts. It is funded and supported entirely by corporate funding and contributions to those lawmakers sympathetic to the goals of the corporations. After all, if there's anything we've learned and most of us understand, corporations do not throw their money away. No, they are very frugal and spend their money in ways that it returns to them with little brothers and sisters in tow. They are not investing in America, they are investing in imposing their will upon us. The recent "Citizens United" U.S. Supreme Court decision allowing the funding of political ads, PAC's and other electoral machinations by corporations, without any transparency is a clear indicator of where we are heading as a nation. A clear representation of how this decision is used politically is before us in this election cycle. Ads against our current administration are prevalent on TV, radio and across the internet. They are paid for with corporate funds that are virtually untraceable (as they're meant to be by those placing them). Citizens United is responsible for the ongoing scandal involving the US Chamber of Commerce's use of foreign corporate funds in our election campaigning. Again, corporate funding, but from across the water this time and given by foreign interests to ensure our continued corporate outsourcing of U.S. jobs to their countries and corporations.

We're at an important crossroads in our history. If we continue along the path we've been taking over the past two or three decades, this series shows us where we will be heading. We have the choice of avoiding that by simply looking at the choices offered and making a genuine decision to avoid that choice offered by corporations and their political partners. To do otherwise may well turn us all into laborers for corporate profiteers. Free thinking and everything we believe in is on the line. We're suffering with lost jobs and less money to spend where needed and that makes us angry and provides us with a bleak outlook for the future. The answer is to not give in to the urgings of those who would take advantage of our current situation for their profit. The answer is to hunker down and deal with our problems as we've done in the past. It is also not an answer to turn to corporations with the expectation that they have our best interests at heart. They exist to make a profit and I truly believe we've given all the profit we can - only to have it used in efforts to try and take what we have left away from us.


(Note: link to "The Corporation" shareware version on YouTube, a 23 part documentary on corporations. All segments are available on YouTube by following the links provided above. some are provided below:
http://www.youtube.com/watch?v=Pin8fbdGV9Y&feature=channel
http://www.youtube.com/watch?v=8SuUzmqBewg&feature=channel
http://www.youtube.com/watch?v=wkygXc9IM5U&feature=channel
http://www.youtube.com/watch?v=aCGTD5Bn1m0&feature=channel)