MON MAR 11, 2013 AT 07:47 PM EDT

Nevada Ways and Means Committee Weighs in on Prison Industry Battle

byBob SloanFollow

 
 
 
 

The Result of Bureaucrats’ Operating as Businessmen

In the continuing saga of Nevada’s Silver State Industries (SSI), the Legislature’s Ways and Means Committee held a hearing this past Friday, March 8th to discuss the budget of the Nevada DOC which includes state prison industry operations.

Critics of the industry program have found traction with the discovery that Alpine Steel, a private company, had access to inmate labor, subsidized facility leases and even with those subsidized benefits owed the state more than $400,000 in accrued debt.  In late 2012 when this story first broke, it was discovered that Alpine also owed inmate workers back wages to the tune of $78,000.  Because inmates are “assigned” to industry jobs by the NDOC, they were prohibited from simply quitting or asking for a reassignment due to not being paid.  They worked for an extended period without receiving any compensation for their labor – or if they were paid the wages did not come from their employer, Alpine Steel.

On Friday morning Committee members had an opportunity to question two top NDOC officials, Director Cox and his Deputy Director in charge of prison industries, Brian Connett.  Those in attendance described the meeting as tense between lawmakers and corrections officials.

Once this story broke in the media, Alpine made the necessary back wage payments to the inmate workers – but continues to owe the state for delinquent lease payments and NDOC staff salaries.  One Assemblyman asked the Deputy Director if the state had paid those salaries, and if so had Alpine repaid the outstanding wages.  The response was a half-truth, with Connett responding, “The back wages have all been paid.”  In fact those wages are part of the total $415,000 owed by Alpine.  The wages already paid are those owed to inmate workers – not NDOC staffers, which remain outstanding.

At times lawmakers displayed exasperation as they attempted to extract factual answers from Cox and Connett, who had difficulty answering direct questions related to prison industry operations; failing industry programs, financial losses and low cost leases of public facilities to private companies.

Cox and Connett were even less open about the situation involving Alpine Steel’s use of inmate labor to compete against other businesses in Southern Nevada, or the huge sum owed by Alpine to the NDOC for back lease and DOC staff payments.

Though lawmakers voiced concerns of the impact upon workers in the private sector and competing businesses, Cox and Connett did not seem to share those concerns, instead advocating that inmates need training while incarcerated to help reduce recidivism.  The irony of turning prisoner training over to a company with a history of questionable business practices - IRS tax liens ($668,000+), $415,000 in back lease and DOC staff salary obligations, unpaid state taxes (new Nevada Dept. of Taxation lien for $37,000 filed within the past month against Alpine’s owner, Randy Bulloch), lawsuits for money owed to creditors (F&M Steel and Pierce Aluminum) and is in litigation over unpaid worker’s compensation claims ($84,716 owed to Explorer Insurance Co.) – was apparently lost on Director Cox.

After all the controversy, debt owed to the state and concerns of both Nevada’s organized labor, workers and private businesses, Cox appeared openly insensitive to both issues by advising Committee members if Alpine’s business picked up, he would reopen the metal fabrication shop at High Desert State Prison to the company! This is indicative of a bureaucrat who genuinely believes he can make such decisions without consulting higher government or legislative authorities.

The general attitude of both was that inmate training was more important than the possible loss of jobs to Nevada’s unemployed steel workers, the potential for lost tax dollars or the impact upon businesses competing with Alpine Steel – or any of the half dozen other companies operating under joint venture contracts with Silver State Industries.

At one point Connett indicated that some of those complaining had been offered a chance to “partner” with the prison industry and had declined, seeming to suggest those businesses shared responsibility for any damage resulting from competition from prison industry operations…because they didn’t take him up on the offer.

Some answers provided to the Committee were enlightening, if incomplete.  Director Cox stated,”the cold hard facts are now that we have to aggressively look at what industries are not turning a profit.”

In addition to losses sustained by prison industry operations, the administrative office is operating in the red ($165,000+ over past two years), the industries’ furniture and metal, auto, upholstery and drapery shops have lost hundreds of thousands of dollars during the past few years.  Collectively Silver State Industries lost $81,597 in 2011 and $237,793 last year overall.

In 2010 the prison industries turned over more than $800,000 in accounts receivable to a collection agency and currently SSI’s past due AR account is in excess of $600,000.  In the budget discussion it was disclosed that the prison industry arm of the NDOC had a reserve fund of $1.5 million which due to continuous losses has been reduced to half a million.  If forced to absorb Alpine’s debt, the reserve fund will be exhausted.

In response to the dwindling reserve, Assemblyman David Bobzien, D-Reno voiced concern that when that reserve is exhausted, the prison industry would begin to dip into the general revenue fund, saying, “This is a clear track into the dirt, and without substantial retooling, it’ll be in the hole”

Bobzien and Assemblyman Michael Sprinkle, D-Sparks, questioned Cox about whether industry programs would be cut and what the department would do to get its industry program on a sustainable track.

Cox said he’s “very pessimistic” about future revenues and that “when resources go, of course programs will go.”  They were unable to get Cox to provide them with definitive responses or propose solutions to cure the industry’s financial woes.

“It appears that at some point the reserves are going to run out, but in the meantime, it’s a loss-loss across the state,” Assembly Speaker Marilyn Kirkpatrick, D-North Las Vegas, said, weighing in.

Kirkpatrick also had difficulty getting straight answers to some of her questions on business management issues and as to whether the prison industry program is really about training or rather a work program, putting inmates to work for privately owned companies at the expense of non-inmate workers.

In supporting the prison industry operations, Connett pointed to the “Big House Chopper” program.  An industry created by Howard Skolnik when he was in Connett’s position.  While using that program as an indicator of the work inmates were capable of and alluding that this industry was successful, he failed to advise the Committee thathe closed that program two years previously:

“Mr. Magnani said some time ago the motorcycle production was shut down, there was some motorcycles that Prison Industries was attempting to sell online. Mr. Magnani requested an update to the status of the built motorcycles. Mr. Connett informed the Committee that three motorcycles were for sale. Prison Industries was looking at reducing the price based on the current market. The motorcycle operation has been discontinued.”

Prison Industries manufactured a total of five motorcycles.  Two of those were sold in a “sweetheart deal” to one of Connett’s other prison industry companies, Thomson Equipment.  Despite vigorous advertising on eBay and other outlets, the remaining three have now sat for several years without any interest shown by potential buyers.  Another example of funds wasted to advance a prison project that has eaten away at the profits generated by other industries – both in dollars spent for materials as well as advertising.

Clearly referring to the motorcycle industry, the Deputy Director exhibited these half-truths to the Ways and Means Committee in an attempt to justify the need and usefulness of continued “training” of prisoners – whether the industry providing the training is viable or not.  In the case of Big House Choppers, it is long gone.

Examinations of the financial statement(s) for SSI for 2011-12 reflect that traditional prison industries such as farming, ranching, license plates, prison garment(s) and printing were all profitable.  It is the industries operating in partnership with private companies that are failing; metal shop (Alpine), drapery, automotive and upholstery for example.

Not only are these failing industries losing money, they are the ones negatively impacting upon private workers, potential workers and suppressing expansion of competing Nevada businesses.  These are also the industries that have been receiving substantial tax and lease benefits that are denied to competing businesses, resulting in an unfair advantage.  Companies using inmate labor do not appear to be paying Nevada’s Modified Business Tax, which further depletes the tax base while increasing potential corporate profits and disadvantaging their competitors.

Another issue of contention was the lease agreement between SSI and Alpine.  In 2011 Alpine was in arrears yet Connett authorized a lease contract that provided 19,000 square feet of manufacturing space at the unbelievable rate of $.26 cents per square foot ($5,000 per month).  The Nevada average for such space has been depressed due to the recession, but is currently at $.68 cents per square foot.  For the same square footage a private company would pay $12,990 per month in the “free world.”  This saved Alpine as much as $95,000 a year in operating expenses.  Assemblyman Bobzien called the Alpine lease an “unfair subsidy”.  There was no question as to how many of the other companies partnered with SSI were receiving similar low cost leases.

All of the losses described above, lead to more than an “appearance” of total mismanagement.  It is assumed that Greg Cox was chosen as the Director of the NDOC based upon an ongoing career in corrections.  He wasn’t chosen for his business acumen.  Putting him in charge of overseeing contracts, leasing arrangements and other commercial business decisions appears to be well outside his expertise.  Between them, Cox and Connett have made decisions that have negatively impacted taxpayers, private businesses and Nevada’s workers – yet when called before a legislative body to explain those decisions, they exhibited their lack of actual knowledge and experience in business practices.  Making matters worse they demonstrated they were willing to blunder through and by making statements claiming they would reopen the prison metal industry to Alpine Steel…and claiming Alpine Steel deserved a lower lease rate because of the difficulties of getting materials in and out of the prison and transportation logistics.

Again it needs to be said that those are matters for someone higher along the government chain to consider and make the final decision on.  It is unrealistic to allow a Deputy Director or Director to enter into binding contracts and leases that reduce the revenue streams from leasing state owned property or facilities.  It is also unrealistic to give Cox or Connett the authority to waive payments owed for leases, salaries or materials owed to the state.  By assuming these duties, these bureaucrats were gambling with taxpayer money, betting on Alpine Steel and similar companies to ultimately become viable and repay debts owed – debts they allowed to accrue and are now having difficulty justifying.  All can now see they lost that wager, with Alpine Steel and other companies owing NDOC more than $600,000 collectively.

In the public discussion period following the questioning of Cox and Connett, Danny Thompson, executive secretary treasurer of the Nevada AFL-CIO discussed the impact upon non-inmate workers on the outside from contracts such as that between SSI and Alpine.  He brought up the issue of safety to Nevada citizens that travel over or under a bridge spanning Interstate 15 that was constructed using prisoners in a “training program”. He said Alpine Steel produced steel girders for the construction project at the North Fifth Street Bridge in North Las Vegas and he questioned whether strict certification requirements for such projects were complied with in the training of inmate workers.

Thompson also called into question whether the materials used in the project met strict industry, state and federal specifications as to stress, weight and other factors involving materials used in the project – and wanted to know if inspections were conducted properly.  He also expressed concerns over the Wet ‘N’ Wild theme park project where Alpine was the structural steel contractor, saying he worried about the safety of children and families who would be visiting the park where inmates in training made many of the steel components.

A member of the Iron Workers Union, Local 433, Robert Conway also spoke, stating he had three hundred and fifty qualified iron workers without jobs, while the state was helping provide inmate welders for Alpine at wages far below the prevailing wage.  He also voiced concerns over the safety issues raised by allowing inmate steel workers to fabricate steel components used in public projects.

In response to criticism from Committee members and the public, Alpine owner, Randy Bulloch appeared via teleconference from Las Vegas and issued a statement in response to Thompson’s concerns, claiming that inmate workers were in fact certified as required.  He denied the use of structural steel components manufactured by Alpine in the bridge project and added that he had copies of material inspections and specs.  Bulloch spoke about his company in general terms but made no effort to defend the use of prison labor in the manufacture of structural steel used in his business.  It should be noted that Alpine Steel makes no mention on their website of the use of prison labor in manufacturing steel components, or that the company is involved in helping train prisoners.  That factoid is noticeably absent – as it is with TJ Wholesale and Jacob’s Trading, two other companies partnered with SSI and leasing facilities from the NDOC.

What wasn’t posed to Connett and Cox in the questioning by the Assembly Committee was the issue of a potential conflict of interest involving Nevada’s prison industry and compliance oversight.

The trade group,National Correctional Industries Association (NCIA) provides oversight over all prison industries in the U.S. and of late, internationally.  The NCIA does this under a grant from the Bureau of Justice Assistance.

This trade group advocates and lobbies on behalf of companies, corporations and organizations involved in prison industry operations, supplying those operations or benefiting from the labor of inmates.  Connett is currently serving as the Chairman of the NCIA and thus able to make determinations as to whether his actions and thus SSI are in compliance with prevailing laws.

This trade group advocates and lobbies on behalf of companies, corporations and organizations involved in prison industry operations, supplying those operations or benefiting from the labor of inmates.  Connett is currently serving as the  and thus able to make determinations as to whether his actions and thus SSI are in compliance with prevailing laws.

Many of the questions posed to Cox and Connett by the Committee members arose due to a comprehensive study I conducted for the non-profit Voters Legislative Transparency Project(VLTP) organization. As Executive Director with an interest in prison industries, I have been involved in researching and investigating prison industry programs for more than a decade.  In January VLTP submitted the studyof Nevada’s prison industries to members of the Nevada legislature, Governor Sandoval, AG Masto and Secretary of State, Ross Miller.

In that report many of the deficiencies and issues discussed Friday were presented along with documentation supporting the conclusions and recommendations made.  The questions posed by Committee members indicates they had all read the study and wanted answers to the questions raised by the research.

One observation made during the research phase of compiling the study, is that it appears that Cox, Connett and the NDOC are attempting to run the state department of corrections as a “business” rather than a state agency.  Partnering with businessmen and women who deal daily in matters of profit/loss and market share, the NDOC is woefully unprepared, as the accounts receivable and low-cost lease to Alpine demonstrate.  Director Cox, Connett and the NDOC seem not to understand that any losses arising from these partnerships between SSI and private companies are ultimately borne by Nevada’s taxpayers.  This already happened in 2010 when Cox’s predecessor, Howard Skolnik applied for a Supplemental appropriation from the Legislature due to losses incurred from recession and reductions in prison industry income.

With more than a million in uncollected debt since 2010 and lost streams of revenue due to sub-par leases, industries losing hundreds of thousands of dollars annually, the NDOC is being critically mismanaged.  As a state agency, it is the taxpayer who will be left making up the lost revenue from this lack of management.

One recommendation made directly to the Governor was that Nevada adopts the in-place mandatory guidelines of the Prison Industries Enhancement Certification Program (Pie Program).  This program allows joint ventures between private companies and state prison industries.  It provides a way for private enterprise to have access to inmate labor and to distribute products across state lines, sell to the U.S. government in amounts exceeding $10,000 and to sell those goods in consumer markets.

The Pie Program has nine mandatory requirements and four of those developed by Congress for this program include:

Wages. Authority to pay wages at a rate not less than that paid for work of a similar nature in the locality in which the work is performed.

Non-inmate worker displacement. Written assurances that PIECP will not result in the displacement of employed workers; be applied in skills, crafts, or trades in which there is a surplus of available gainful labor in the locality; or significantly impair existing contracts.

Consultation with organized labor. Written proof of consultation with organized labor prior to program startup.

Consultation with local private industry. Written proof of consultation with local private industry prior to program startup.

Nevada is already participating in this program and has Pie Program operations running in the prison industry.  Those businesses appear to be operating without financial losses to the state or SSI, in compliance with the mandatory requirements and thus, not exhibiting any of the problems the non-Pie Program involving Alpine is.

Adopting these regulations would ensure consultation with competing businesses, labor groups, and unions ensuring inmates are paid the required prevailing wage.  Since the NDOC deducts 24.5% of the gross wages paid to inmate workers, the amount taken through this deduction would increase and those funds would be used to offset the costs of incarceration. Combine adopting these guidelines with genuine oversight provided by the Nevada Board of Prison Commissioners, chaired by Governor Sandoval and I believe this is a solution to the existing problems experienced by the NDOC.

Continuing to allow a private non-profit trade association to oversee the state’s prison industries in the face of the controversy that has erupted while they had such oversight duties, is asking for more trouble.  As the head of the NCIA Connett has demonstrated he lacks the desire to enforce compliance and he is willing to put the interests of that organization above his responsibilities to the state.

Slave Labor - In the trenches comparing treatment between the Haves and Have-Nots...

I think we should all step back for a moment and take a closer look at the manipulations that have occurred over the past two years involving our collapsing economy, corporate involvement and how that relates to the current tensions in Wisconsin, Indiana, Ohio and elsewhere. Today there is no doubts left in anyone's mind that corporations such as JP Morgan, Bank of America, Leahman Brothers and other financial institutions were responsible for the collapse of the housing bubble, and the economy in general. Many of us lost our retirement savings, 401K's and other investments due to these machinations that collapsed everything.

The Government bailed all of these corporations out, feeling that unless they did - with our money - the financial sector would completely dissolve bankrupting the rest of our economy and creating a financial chaos in the U.S. of previously unknown proportions.

Now I have to admit I'm no economist and this is probably an amateurish description of how all this came about and resulted in where we are today. That being said, please follow this train of thought a moment of two longer before hitting the back button...

We bailed out these banks and investment corporations to the tune of more than 3/4 of a trillion dollars. This was money belonging to the taxpayers. Much of it has been transferred to our children and their children and this will be paid for by them in the future. Instead of loaning that money out to those in need of loans, the banks and investment firms used the money to acquire other financial companies or corporations that were floundering. At the same time they rewarded themselves with huge bonuses paid to top executives out of the "bail-out money" the government made available to them.

I believe that another use of the billions we've provided to these corporations has been used to fund lobbying and many campaigns of predominantly conservative Republican politicians that advance the agendas of these corporations at the state and national level(s). As I wrote earlier this week, Koch Industries had an unusual and cozy relationship with Kathleen Sebilius in Kansas when she was Governor, going so far as to "loan" her an economist to provide advice on cutting government spending in that state. As that diary also reported, Sebilius as our Secretary of the U.S. Health and Human Services subsequently approved an application submitted by Koch Industries for a cut of the $5 billion set aside for the Early Retiree Reinsurance Program offered under President Obama's Healthcare initiative. After fighting against the healthcare program from the start, Koch was one of the first in line with their hands out to take money available from that very program. At the same time they continued to fund conservative efforts of repealing the program altogether through direct individual political donations, lobbying and support of candidates that share the same conservative ideology as the Koch brothers.

Throughout it appears that our money provided to these corporate interests (such as Koch Industries) in the bail-out and other initiatives, is being used to further the goals of those corporations against us. Where Republicans have taken office - swept into Governorships, Senate and House seats in 2010, there has been a concerted effort of furthering the goals and agenda of the likes of these corporate elite. One of the more important parts of that agenda is the elimination of Unions and collective bargaining. Another is the matter of abortion and freedom of choice issues. Conservatives have continued battles on these issues for years now. They refuse to accept the opinions of the Court in actions such as Row V. Wade and those involving Unions and collective bargaining and right to work initiatives. They have managed to keep their views and arguments before the public for many decades now as they pursue a reversal of the laws pertaining to both.

In the run-up to the election last year, and even today, both of these key issues remain at the core of the Conservative agenda. Now some may ask how can the issue of fair wages and collective bargaining be related to prison privatization and prison industries - and my least favorite topic, Slave Labor? It is connected in a couple of ways that may not be immediately apparent to most.

First, since the mid 1990's corporations have been using federal laws to merge their production and manufacturing with prison industry operations. Under the PIE program they have been allowed to "partner" with those various state prison industries to use cheap inmate labor to manufacture their products. As these partnerships increased, more and more operations were moved out of the private sector and into the prison environment. This removed jobs from the private sector and put them in the hands of inmates. The prison setting prohibits unionizing, collective bargaining and striking for better or even fair wages by the inmate work force. They are paid no benefits; health insurance, unemployment protection, paid vacations or paid time off. In many states OSHA is not allowed to inspect or become involved in work-place safety or investigate accidents. Inmate workers hurt on the job are treated by the prison medical staff - not by outside work comp physicians or facilities (at the expense of the state taxpayer). In short, all of those things sought by corporate employers and fought for on their behalf by conservatives were found in the prison industries. This was recognized by companies as the nirvana sought by them; low wages, no unions, no benefit or retirement packages and responsibility for worker injuries and upkeep subsidized by the taxpayer. Does all this not sound exactly like what their end goals are for American workers?

How good are the products produced by prisoners in these industries? Are their products efficient and of the same quality as those produced in the private sector? Should we be afraid to fly on aircraft manufactured by Boeing that has dozens of sensitive electronic and cabling products made by prisoners? I say no to the quality and yes to the question of safety. Let's take a look at one example of why I answer these questions as I have.

Republicans - and in general, all politicians and the general public proudly profess that we support our troops fighting in Afghanistan and Irag. As I wrote in a previous diary, many - in fact most - of the equipment and materials being used by our troops today are made in prison. The Federal Prison Industries (UNICOR) has a near monopoly on armed forces gear and materials. Many of these products are manufactured in the prisons, wholesaled to Halliburton (or similar companies) and then retailed to the Department of Defense. One of those products made by the prisoners and distributed to the military serving overseas now, is helmets. Of course helmets have been a necessary part of any armed force, army or military body since the first World War.

Recently a private manufacturer received a government contract to manufacture some of those products for the Army and nearly all of them for the Marines. The contract called for this private manufacturer to utilize UNICOR to manufacture part of the orders (obviously to reduce costs) and it did so, using one of the factories owned by UNICOR in Texas. When many of the helmets made by the prison industry were inspected they immediately failed ballistics testing. Forty-four thousand of more than 600,000 such helmets were immediately recalled. Then it was learned that in 2007-08 UNICOR was awarded non-competitive contracts by the government to manufacture all of the helmets for the U.S. Army and Marines. Questions of safety were raised - along with those of using inmate labor at a time when our economy is in the tank, and millions of American workers were out of jobs and needed employment. Here is a quote taken from an article written by Derek Gilna that came out today in Prison Legal News:

"It is not widely known that UNICOR utilizes poorly paid and often indifferently supervised prisoners to manufacture not only goods for use in the federal prison system, but also products that are in direct competition with private-sector businesses. In the past UNICOR has obtained multiple contracts to make ballistic helmets for the U.S. military, and in 2007 it was awarded a non-competitive Army contract pursuant to a provision in federal procurement regulations.

"UNICOR was awarded another non-competitive contract in 2008, which comprised 100% of the helmet needs for the U.S. Marine Corps and effectively shut out private industry. According to Rep. Carney’s office, in both cases UNICOR’s products failed to pass first article testing – the process that is designed to ensure the equipment meets specifications – and after an 18-month delay, not a single acceptable helmet had been delivered.

“Because the inmates were making the helmets, the cost was down, but the main concern was the product being substandard,” said Rep. Carney. He also was critical of the fact that UNICOR was awarded the contracts during a time when the industrial and manufacturing sections of the U.S. economy were shedding private-sector jobs. “At a time when our economy is rebounding, there are other private firms eager and able to take on this important work, which will lead to the creation of crucial jobs in the United States,” Rep. Carney noted."

Even in the face of issues such as safety for our military personnel, the government is comfortable with awarding such non-competitive contracts for the manufacture of such important and critical equipment as helmets, necessary to keep our troops safe - to prison inmates. This is the federal prison side of the slave labor topic. The PIE program is the state side of the same subject and the government - specifically the Department of Justice is bullish on using state prison inmates to manufacture private sector products that all of us use daily. As I've done previously, here again is the link to the recruiting video used by the National Correctional Industries Association, the Bureau of Justice Assistance and the DOJ to recruit and encourage more private sector manufacturers to move their operations into a "nearby prison industry" to take advantage of highly skilled and willing prisoners...

This PIE Program allows private U.S. corporations to gain access to the vast number of prison inmates as a labor source. It not only allows it, the DOJ and the prison industries encourage it by informing companies that they don't have to outsource jobs overseas where shipping of their products back to the states cut into their profits. Instead they tell them to simply move entire operations into prison industries in the U.S. to take advantage of cheap but skilled labor and allow them to continue to use "Made in the U.S.A." labeling. At the same time the DOJ works hard to hide the use of prison labor by these participating corporations by not enforcing requirements that prison made goods be clearly marked as "Made in Prison by Prison Labor" labels on packaging.

By being allowed access to this captive work force, more and more jobs in the private sector have been steadily lost over the past 15 years. Private sector companies and businesses competing against those using slave labor have slowly been disappearing from the job and sales markets as pricing for their products were underbid or undercut time and again. Another example of this is occurring in Montana as I write this.

Because these same corporations that are using foreign labor to make their products are tiring of paying for shipment of those products back to the U.S., they moved operations into the high profit arena of prison industries to eliminate those costs. At the same time they are supporting an agenda to lower wages and eliminate any form of collective bargaining - public and private - in the U.S. so they can move their operations from inside our prisons and back from China and elsewhere. The obvious purpose of eliminating any form of unionized labor in America is to implement the same wages and conditions they enjoy from those other sources of labor. Just today MSNBC had a report on jobs in the U.S. and reported that jobs are available now, but the wages are much lower and the good paying jobs will never return. This clearly shows how effective this conservative agenda on behalf of their corporate sponsors has been.

As Conservative Republicans win governorships, senate and house seats across the U.S., this agenda I'm speaking of, has been promoted by the likes of ALEC and the Koch brothers and introduced in each state where they prevailed. No need to discuss Wisconsin here, we already know the agenda is in place there and that a phone call from a "Koch" will be quickly answered by Governor Walker as demonstrated yesterday. Down in Florida, Rick Scott won the gubernatorial election there last year and is calling for privatizing most/all of the prison system in that state - even with 8,000 empty beds in state run facilities - and privatization of education and other state programs. Same thing is happening in Indiana and Ohio regarding right to work legislation, union busting and privatization. In these states, conservative leaning media trumpet the benefits of passing such legislation with articles filled with statistics, facts and statements from supporters. Many of these facts and statistics are questionable and avoid informing us of the impact upon wages and employment is such legislation becomes law.

This site provides much information on the progress of privatization of state assets and programs, and the problems that followed. The truth is we have been involved in a war over wages and privatization for more than two decades now but the public has been blissfully unaware of the actual implications of what the issues mean to them as taxpayers and workers. With the explosion of protesting and demonstrating across the Midwest, many have finally been awakened and realize what is being jeopardized by the privatization and right to work initiatives advanced by the Conservative factions in their states.

What many still do not realize though, is that the assets owned by the states are the property of the taxpayers. This includes prisons and prison industries. Once an asset belonging to the citizens is sold, it is gone. It now becomes the property of the buyer to do with as they please. With prisons that cost millions of tax dollars to build, the transfer of those facilities to corporate ownership removes that asset from state ownership, but the taxpayers continue to pay the costs of imprisonment of inmates, but the money goes to the owners of the prison. Once they have control of the facilities it's a done deal and from there on out, the state and taxpayers are held captive to calls for increased spending to continue to house and provide care for the state inmates. While in this time of corporate driven economical downturn, the last thing we should be doing is giving/selling/transferring more and more taxpayer owned assets over to these corporations. We've already given them more than they deserve and they continue to stand before us with their hands outstretched, not satisfied until we also relinquish all right to our jobs and fair wages.

Now Louisiana is proposing to turn two of the state's prison facilities over to county Sheriff's to reduce state costs of incarceration while two more are about to be sold to private prison corporations that already run them under contract. A Google search about privatization efforts of state prisons returns numerous articles informing that this trend is widespread. There is no benefit to these privatizations to either the state or their taxpayers. Many articles, reports and other studies reveal time and again that there is no real savings through privatization and recidivism is not reduced by using private prison operations. Additionally, most states are now suffering serious financial and budgetary shortfalls and as many now realize the first cuts that are made are within the prisons themselves followed quickly by cuts in education, health programs and finally senior programs. Colorado is no exception and as this article informs, at the top of the list are cuts to prison programs.

At the same time these budgetary measures are being made, reducing private sector jobs along with rehabilitation programs to the inmates, each state is increasing their corrections budgets, led by Arizona. Governor Brewer turns every spare penny available in that state over to the DOC and the private prisons operated in that state. Even as lawmakers and Governors promise reducing their prison costs, they increase the budgets more each year. Today Corrections is one of the largest line item expenditures in most state's budgets, yet the "return" on the money spent is negligible as recidivism continues to climb. We're just not getting the bang for our buck that is necessary to impact upon reducing incarceration. We've already decreased arrests and crime in the U.S. since 1990, but can't get a grip on incarceration. The number one reason why is the involvement of corporations and profits derived by keeping prison populations at an all time high. There is absolutely no incentive for corporations to want to reduce the rates of incarceration and put themselves out of business. Why can't our Democratic lawmakers and the public see this?

In conclusion it boils down to simple terms. To drive down wages, companies have moved their operations overseas and into prisons. As the jobs disappeared, more and more Americans have been put upon unemployment and other social programs. This is all driven by the top 1% in the U.S. who hold all the wealth. They use the funds generated from profits to pay lobbyists to buy our legislative members to further their goals. Their bought lawmakers - mostly conservative - use ALEC (funded in part by Koch Industries and their foundations) to propose and enact legislation favorable to the corporations. These legislative efforts include(d): increased criminal laws, truth in sentencing, mandatory minimums, abolishing parole, and expansion of prison industries among others. Using the inmates those laws incarcerate, the companies move operations into the prison industries to take advantage of that large workforce to avoid having to pay standard wages to American workers. Conservatives have worked overtime to put their corporate masters in the cat-bird seat regarding imprisonment and profiting from that incarceration through privatization of prisons.

Now, again using the profits generated from a captive work force, the same companies fund conservative efforts of stifling private sector wages through initiatives proposed by the same lawmakers they always rely upon. They are funding the current legislation to increase privatization, eliminate Unions and collective bargaining rights. In the place of those they are promoting right to work legislation to now make it possible to have access to civilian labor at far reduced wages. All of this is in pursuit of more profits to make themselves richer and richer...and us poorer and poorer to the point we will be willing to work in skilled jobs for minimum wage. But wait, they're even pushing for the elimination of minimum wages in many states. So even that safety net is in jeopardy to workers. Now they believe the time is right to take over for our governments - state and federal - on most issues, believing there is no real need for government involvement in our society, as corporations can run it better.

Somehow we must realize that giving this cabal more and more tax dollars and the power and influence they purchase with those dollars is self-defeating. We should never have bailed out the banks and Wall Street as they brought the entire thing down around their own necks. We now see the kind of reward they have for our bailing them out - enslavement.

We have to wake up to the threats to our freedoms, jobs, livelihood, wages and fundamental rights before we're all working as slave laborers at wages comparable to China...for that's what these insidious bastards want for all of us. In the current fight...as the Unions go, so go we. Hate 'em or love 'em, without 'em we lose all voice in opposition to the course planned for us by the likes of Charles and David Koch, ALEC and their conservative lawmakers serving as lackeys...

Slave Labor-Gerrymandering, Redistricting, ALEC, Koch Brothers and their Conservative Agenda...

I recently read an informative article about Arizona's private prison industry and the impact upon communities by the way the political districts are drawn to allow small rural, communities with predominantly white populations to enjoy financial benefits of having large inmate populations counted in their census. This also allows small communities to appear to have populations that represent African-American and Hispanic ethnicities, where that representation is all behind bars.

The impact of all this is a drain of financial money away from the large urban areas of Arizona when those funds are redirected to the smaller rural communities. In addition this system allows for an increase of representation from those small communities, based on populations inflated by the inclusion of thousands of prisoners, many that come from other states as far away as Hawaii.

This Article in the Phoenix Magazine shines a light on how small, mostly conservative white communities receive their political and financial clout in Arizona. A sad fact of this is that many other states do the same thing. With almost 2.5 million of us in prisons today, redistricting based on the inclusion of inmate populations, enables rural prison communities to appear to have much larger and more diverse populations and to receive millions in state and federal tax dollars because of that. Former Arizona state Representative Pete Rios says it better than I:

"Today, the town (Florence) and its neighbor, Eloy, are Arizona’s major prison towns. There are two large state prisons and eight private prisons in the area that, together, house more than 24,000 prisoners. They are bused in from the Valley and throughout Arizona or imported from other states, including Hawaii and Alaska.

"Those prisoners aren’t really Eloy or Florence residents or constituents of Pinal County in any sense of the words. They can’t vote, and they may never step foot in the county beyond the prison walls. Most of them will be released in a few years and will return to homes elsewhere. But when the U.S. Census Bureau counted Arizona’s population last year, all those prisoners were counted as if Pinal County were home. That means millions of dollars in additional tax revenue sent from the state to governments in Pinal County. It also could mean a louder voice for local residents in state elections.

"This year Arizona and every other state will redraw political boundaries. The redistricting process is tedious but hugely important. It occurs every 10 years and guarantees the fundamental principle of “one person, one vote” in our representative democracy.

"But as that process kicks off, some experts are warning that the sheer abundance of prisoners in Pinal County and in large prisons throughout the state could impact the basic tenet of equal representation. How prisoners behind the walls are counted when Arizona redraws the lines could distort political power in the state, enhance the clout of the controversial private-prison industry and dilute the voice of Phoenix residents in state politics in favor of other areas with prison “residents” who aren’t really residents at all.

Peter Wagner, executive director of the Massachusetts-based Prison Policy Initiative, which helped push recent reforms in New York, Maryland and Delaware, says:

"The impact of prisoners on Arizona’s political landscape could be among the most dramatic anywhere in the nation. “We have enough people in prison in this country and enough people in prison in Arizona to change how our democracy works, to change the decisions that the Legislature makes.”

This situation in Arizona is also replicated in many other states, coast to coast and represents another way in which prison inmates are used by Republicans to impact upon tax dollars and political issues and influence. With this kind of system used to falsely increase true populations of small, White communities that are predominantly conservative provides them with more tax dollars, representation and allows the larger urban cities to lose both in the process.

As this article reports, prisoners from large cities are sent to prison facilities in distant rural settings - far from where they lived and their families remain. Gerrymandering allows these prisoners to count toward tax subsidies - state and federal - in amounts disproportionate to their actual ethnic makeup and true population(s).

If nothing else this clearly demonstrates that the Conservatives have all issues involving prisoners, prison industries using those prisoners and private prisons mapped out. In Pinal County, Arizona, the largest employer is Corrections Corporation of American that operates no less than six private prisons in that county alone.

If we think or believe that CCA is not a dominant presence in Arizona and get their way through the community's reliance upon the increased tax dollars from incarceration and tax subsidies, one has only to look at this article about Eloy, Arizona's recent council meeting concerning three agreements presented by CCA. In the face of facts and figures presented by those attending with knowledge and experience in prison issues, informing the council that using private prisons did not reduce costs and the impact upon community infrastructures (water consumption, roads, etc.) the city council unanimously passed everything CCA wanted (of course it didn't hurt CCA's position that they had already awarded a lucrative landscaping contract at the prison to the city Mayor). In many similar small communities where CCA and Geo Group have a presence the outcomes are usually preordained. In Arizona, Governor Brewer's repeated statements of support for CCA and other private prison corporations - along with her propensity to funnel every spare dollar the state treasury has to corrections and private prison operations - leads to such unanimous approval of everything CCA and prison.

Take a quick look at the 15 or so prison industries located at or near the city of Florence here. Also the prison industries have a retail outlet store - where anyone can buy goods if they don't inform the staff that items purchased will not be removed from Arizona. Right.

Florence Arizona is representative of what's wrong with prison privatization, prison labor, gerrymandering and the overall conservative agenda to capitalize off of all three. As I've written in the past, CCA and the number two private prison company, Geo Group are both members of the American Legislative Exchange Council (ALEC) and sit across from conservative legislative members in each of the nine (9) "Task Forces" of ALEC. There they jointly determine new laws or amendments to existing laws that benefit corporate interests. One corporation above all others has great influence upon both the agendas of these task forces and the 2,400 state conservative lawmakers involved in the manipulations of law - and that is Koch Industries, represented by their director of public and government affairs, Mike Morgan.

ALEC, Koch and CCA's interests, influence and intentions were clearly represented last year in the implementation of SB 1070 there in AZ. We've all been made aware of the involvement of all three in the illegal alien and immigration issues in that state by reports by such as NPR, compiled by Laura Sullivan and others, that informed us about the money to be made off of detention of those apprehended by CCA. Today we are once again faced with the involvement of ALEC and the Koch brothers in issues also involving corporate interests in wages and other labor issues all across the U.S. I believe the latest debacle unfolding in Wisconsin, Ohio, Virginia, New Jersey, Montana and Indiana are happening because Koch brothers, ALEC and other corporations profiting off the exploitation of inmates to eliminate civilian jobs and depress wages, were emboldened by the quick passage of SB 1070 last year. The conservatives led by Koch and ALEC are doing exactly what PRIDE Enterprises did in Florida - overwhelming the public and government resources by forcing both into a battle over issues important to corporations. More of their divide and conquer initiative.

In this economy, with individuals fighting to put food on their tables, states seeking ways to reduce their deficits and the federal government being attacked on all sides about spending, the situation is rife for those with unlimited capital reserves to wage a war of attrition against labor, government and wages. With the exception of corporations, big businesses, banking and investment firms the rest of the country and state governments are hovering on bankruptcy. In that environment, rich business owners find they can use their money to influence the passage of legislation favorable to them. It is now relatively easy to understand that in the run up to the 2010 elections we heard all about the influence of the Koch influences upon campaigns in key states across the country and their funding of the Tea Party. In Wisconsin alone, they contributed $43,000.00 to Walker's gubernatorial run, money to Kasich in Ohio, possibly Snyder in Michigan and to the campaigns of numerous conservative legislative candidates in many states. The end result was that through the use of vast reserves of cash, the Koch brothers were able to "buy" political slots across the country. The Tea Party successes were not so much about the issues and "values" they presented, but rather the amount of money and influence used to buy them a position within our government. Only in those campaigns such as O'Donnel's in the Northeast and Angle's in Nevada was the money simply not enough to overcome the candidates ludicrous platforms.

Once January rolled around and the Koch funded "winners" were sworn in, Koch and fellow conservatives in ALEC began to immediately advance their attacks on labor and wages in several key states where they won big. Governor Walker is so indebted to the Koch money that he was willing to use violence by introducing "troublemakers" into the demonstrations in Wisconsin in an attempt to prevail at passing legislation to end collective bargaining and implementing right to work laws. Both of these are within the conservative agenda pressed by Koch and ALEC's membership.

Senator John Ensign (R) of Nevada introduced a bill last month to require all low-security prisoners to work 50 hours a week. Creating a national prison labor force has been a goal since he went to Congress in 1995. Wonder what the position of ALEC and the Koch's are regarding this legislation?

Check out this statement made in the article linked to above:

"Technology has made it easier to coordinate. In Hunterdon County, N.J., nonprofit organizations and government agencies can view prisoners’ work schedules online and reserve them for a specific task on a free day. (Coming tasks include cleaning up after a Fire Department fish fry and maintaining a public park.)"

I have to wonder if all these indicators here - and in previous diary posts - have served to awaken all of us to the fact that we are definitely in a class war here in the U.S.? It is no longer Egypt, Libya, Tunisia and other far away countries that are suffering from - and protesting against - the rule of the rich through depressing citizen's wages, education and incarcerating those who object. Many of us now know if we merely stand up and look around us with critical vision, we can see the same machinations ongoing all around us. Instead of dictators with their pictures splashed all over every flat surface to remind us of their omniscience, we find billboards for AT&T, Boeing, Victoria's Secret, Shelby Muscle Cars, Burger King, Wendy's, McDonalds, and hundreds of other corporate advertisements for the corporations making huge profits from incarceration and prison slave labor. The pictures are different, but the concept and agenda is the same.

We have to give credit where credit is due - whether we want to or not - by acknowledging that the Koch family empire has thought all of this out well, doing their homework and putting their influences within ALEC to good use. They rub elbows with the two top private prison corporations in the world as well as three hundred or more other influential corporate members all belonging to ALEC. Together Koch and ALEC's corporate and conservative lawmakers are now holding the steering wheel representing our nation as it moves forward in history. Their hands grip the wheel so tightly it is nearly impossible to tear it from their grip as they firmly turn the wheel and head our country toward the roadside ditch - a deep, dark hole from which we will have great difficulty extricating ourselves. Time is running out and we are steadily approaching that abyss at their hands.

As this diary and the links provided demonstrate, conservatives led by General's such as David and Charles Koch, with officers comprised of the likes of ALEC's Public Board of Directors led by LA. Representative Noble Ellington lead an army of Conservatives in this class war. The soldiers led by these capable officers are the likes of Governors Walker, Daniels, Kasich, Snyder, Scott, Christie and the conservative heavy legislatures of those and other states. In this battle we are led by...well, our President has chosen to sit on the sidelines and let the workers and the unions that represent them fight this battle without his guidance or assistance. In his place Americans are now led by Unions such as the AFLCIO, UAW, SEIU, and dozens more who are fighting alongside Democratic Senators from Indiana, Wisconsin and elsewhere. So far they have only been able to forestall the inevitable money funded outcome, fighting the Kochs and others to a temporary standstill. How one leads when their citizens are faced with nearly insurmountable attacks upon them on important issues, is part of the legacy left by world leaders. President Obama's standing silent as our country is attacked from within, while professing to be a world leader and involving us in the protests and demonstrations ongoing world wide is puzzling to me. I voted for him and the changes he promised. I've continued to support him as others began to throw up their hands and turn their backs on him, but it's becoming harder and harder to continue that support as our jobs disappear into prisons and the likes of the Koch brothers and their cabal tear at the fabric of democracy with the long knives of insurgency and their actions are ignored by him.

How much longer will this go on with President Obama remaining silent on the sidelines, offering neither guidance or getting up and actually standing with them in this all-out assault upon American workers? I don't know and can't speak for our President but I can make a prediction as to the outcome if he doesn't weigh in on these issues - and soon: we'll all be working for these Kochsuckers...for pennies on the dollar, whether in prison or out. There really will be no difference if these bastards prevail. America is now in the same position of "Middle Earth" (for those J.R.R. Tolkien fans) and Mordor and Sauron are nearly upon us - where in the hell is our Gandalf?

INSOURCING - Will Florida's new Gov. Scott fall in with the crooks...or clean them out?
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by Bob Sloan

Thu Dec 23, 2010 at 05:22:44 PM PST

Here are links to the last 4 segments in the INSOURCING series:
INSOURCING - Florida Gov. Elect trashes PRIDE for prison industry operations

INSOURCING - Stimulus funds go to Prisons - their Lobbyists accompany new lawmakers to Washington

INSOURCING - Has the main enabler to job losses and slave labor in Prison Industries been caught?

INSOURCING - How your government does not protect your jobs or prosecute PIECP Violations

Yesterday I wrote about the advice given to Florida's Governor-Elect, Rick Scott by his transition team regarding the Florida Department of Corrections (FDOC) and Florida's prison industries operated by the non-profit corporation, Prison Rehabilitative Industries and Diversified Enterprises (PRIDE of Florida). Today I'd like to continue the discussion by better explaining PRIDE's activities and business practices that have resulted in such harsh language about them by the transition team - as well as others.

In simple terms it's because this corporation once served a necessary and important service for the state. They took over a state run prison industries that was floundering and costing the taxpayers hundreds of thousands of dollars a year to fund and turned those industries around within 4 short years. From 1980 through 1990 PRIDE was held out to all other state prison operations as a glowing and shining example of how private enterprise could work hand in hand with states to address recidivism through training and hard work.

In 1999 PRIDE participated before the U.S. House of Representatives' hearing: "OPTIONS TO IMPROVE AND EXPAND FEDERAL PRISON INDUSTRIES HEARING BEFORE THE SUBCOMMITTEE ON CRIME OF THE COMMITTEE ON THE JUDICIARY HOUSE OF REPRESENTATIVES". PRIDE's General Manager of New Business Development, Michael N. Harrell (Keep Michael Harrell and Pamela Davis' name in mind as you read the rest of this segment) spoke to the committee that was chaired by Bill McCollum (R) of Florida. In that Committee hearing McCollum and others were attempting to "improve and expand the Federal Prison Industries." In fact McCollum was so proud of "his" state's prison industry operator, PRIDE, that he wanted to use PRIDE's business format as a basis for "improving" the federal prison industry. But I lost track again...PRIDE was being heralded as the pioneer in using inmate labor to produce products and lower costs for private sector manufacturers during the 1990's.

Other states began to integrate PRIDE's business plan into their own state run industries. This was the corporation that was drug store magnate Jack Eckerd's brainchild. He worked throughout the late 70's and early 1980 working with Florida's Governor and Legislature to get their approval to try his innovative approach to combining prison industry with training and a reduction in recidivism. He was successful and so was PRIDE through 1990.

During those early years Eckerd saw to it that PRIDE kept on track with the mission goals of the program he'd put into place: training of inmates in prison to reduce idleness and provide released offenders with the skills necessary to allow them to gain employment and avoid a return to prison. Eckerd also made sure PRIDE maintained an employment service for released inmates that worked with local businesses and manufacturers willing to hire ex-offenders. In addition PRIDE provided reentry assistance to those released: vouchers for tools, housing assistance, resume writing assistance. In other words back then PRIDE was totally dedicated to the mission goals set by the Legislature.

In 1990 Eckerd stepped down as Chairman of PRIDE's Board. At the same time J. Floyd Glisson also resigned from his post as President of PRIDE. At the time they both voiced opinions that they were concerned with the direction new PRIDE Administrators were taking the corporation - away from training and concentrating on profits. Both Eckerd and Glisson went on to other projects, most of which had to do with public service duties on behalf of the people of Florida.

Pam Davis succeeded Glisson and eventually took over as CEO of PRIDE. SHe was PRIDE's CEO at the time of the above-mentioned House Committee hearing. This was the pre-2000 PRIDE.

From 1999 through the present both PRIDE and the FDOC have become what can only be termed corrupt. PRIDE turned it's corporate efforts to illegal acquisitions in pursuit of more and more profits while the FDOC began a period of total anarchy. Secretary's of the FDOC from 1999 through early 2006 ran the FDOC in a manner that became openly called the "Dixie Mafia". Steroid and drug sales rings operated within the institutions, run by senior officials of the FDOC. Inmate abuse frequency escalated, staff began raping female staff members and lavish orgies were held at the state owned homes of top DOC officials. Kickbacks brought down Secretary James Crosby in February 2006 - along with his number one "road dog" A.C. Clark.

While the FDOC was busy finding ways to skim as much money as they could from taxpayers and through lucrative contracts that provided kickbacks to the top officials, PRIDE was busy doing damn near the same thing. Davis formed a number of spin-off corporations to use to launder PRIDE funds through to the benefit of she and other members of the PRIDE Board and executives involved. Davis also implemented a policy of partnering with private sector corporations under PIECP to allow the FDOC inmates to be used as laborers for those corporations. Even that wasn't enough though, and Davis and PRIDE began a plan of partnering with then stealing entire companies - literally taking every piece of equipment of her "partners", products, materials and technologies they had developed. Davis was assisted in this by her favorite cohort, legal counsel, resident agent and lobbyist, Wilbur Brewton (mentioned in yesterday's segment and named prominently in the Transition Team Report of Rick Scott). The plan worked by PRIDE having the "partners" move all equipment and supplies into one of the prison industry facilities upon prison property. Once PRIDE staff learned the production process completely, PRIDE would accuse the partner of owing them money, kick them off the property and Wilbur Brewton would then file suit against the former partners and inundate them with motions, discovery demands and stall long enough until the former partners spent all the money they had to file counter suits and prosecute those and defend PRIDE's false charges. This was a good plan, as without equipment, materials or supplies to keep their operation going, these businesses quickly ran out of money to fight the takeover and theft. End result; PRIDE kept everything and continued operations on their own.

The connection between PRIDE and FDOC were not just the inmates kept by one and worked by the other...Crosby as Secretary of the prison system also sat upon the Board of PRIDE - alongside Pam Davis. In that capacity he had the authority to remove all of PRIDE's partners from the state prison property and the staff to keep them from ever gaining access again - to the prison property or their equipment, materials or supplies.

In 1999 Davis served upon or within PRIDE and all of the spin-offs she'd helped fund and form. She also sat on the boards of the Florida Chamber of Commerce, Florida Tax Watch and had served as a director of the NCIA and that year she was serving as the Treasurer of that organization. She was also named to the Florida Council of 100 by Governor Bush.

From 1999 through 2005 the situation in Florida was that crooks were being guarded by crooks and being worked by other crooks - Crooks Crooks and Crooks? sounds like a law firm PRIDE had at one time before switching to Greenberg Traurig, or as I prefer to say, "Do, We Cheat'em and How". How the hell does that kind of thing work!? I mean what is up with that?

In 2005 the Governor's IG issued a report critical of PRIDE about the spin-offs and no-bid contracts between both. This resulted in the resignation of CEO Davis, President Bruells, CFO Robert Smith and several other PRIDE executive staff. After the report came out Governor Bush demanded the entire Board of Directors (appointed by the Governor) resign. Guess what? They had enough pull with the Legislature and at the Executive level through lobbyist Brewton that PRIDE and the Board thumbed their nose at Bush and told him in essence, to pound salt.

In 2006 the indictments of Crosby and Clark were issued and they were arrested, later accepting reduced prison sentences in exchange for guilty pleas. Davis and the rest of PRIDE avoided any prosecution by the state and were still able to avoid public exposure about their thefts of the 5 Florida businesses under the PIECP partnerships.

James McDonough was appointed by Governor Bush to take Crosby's position as Secretary of the FDOC. The Governor also replaced 5 of the PRIDE Board in January of 06, when their terms expired. Jack Edgemon was chosen from within PRIDE as the new President. The CEO position was left open. McDonough was expected to clean up the corruption in the FDOC and Edgemon was supposed to do the same thing with PRIDE. One succeeded too well and the other chose instead to cut himself - and his family - in on the money flowing through PRIDE.

McDonough went through the FDOC like a whirlwind; 20+ senior and many more mid-level staffers were given the boot. From 2006 through early 2008 James McDonough gained many supporters and accolades from the Legislature and public for cleaning up the FDOC. He believed the corruption had been eradicated from the Department within months of taking over and he turned his eye toward PRIDE where he also held a seat upon the Board.

PRIDE's President Edgemon took the low road. He upped his salary and instead of cleaning up PRIDE's situation involving the theft of the companies they stole, he approved the funding by his son-in-law of two for profit corporations - Century Meats and Circle A Brands - to be run by another former PRIDE employee. These companies took the place as PRIDE's business partner in the food processing industry operation, replacing ATL Industries (who they stole the business from). In addition, PRIDE worked closely with former ATL customers to help Century meats and Circle A to take over the federal and private contracts held by ATL. This effectively put ATL out of business and money to continue to battle them in Court.

In 2006 McDonough ordered his Inspector General to open an investigation into allegations I had provided to him concerning PRIDE. McDonough is a non-nonsense kind of guy and in responding to my allegations he asked for documentation and input as to what I thought needed to be done to fulfill PRIDE's role in training and reentry since that was their mission goal.

I provided the documents I had along with a plan that outlined my suggestions of replacing the entire PRIDE Board or the FDOC taking over the prison industries entirely. I told him the one thing that needed to be done was taking the PIECP certificate back from PRIDE.

Twice in 06 I met with Secretary McDonough at the PRIDE Board meetings and in between we corresponded about our concerns regarding PRIDE. In September 2007 the FDOC IG completed the PRIDE investigation and submitted it to McDonough. He resigned that same month from the PRIDE Board. In October he openly called upon the Governor and Legislature to abolish PRIDE and turn the prison industries and the PIECP certificate over to the FDOC. In addition McDonough demanded several million dollars in room and board deductions from PRIDE that they had taken out of the wages of inmates under PIECP and were supposed to turn over to the FDOC. The Governor agreed with McDonough and the Legislature threw a fit. When the dust settled, Secretary McDonough retired, the PIE Certificate was ordered turned back over to the FDOC and legislation was enacted on the issue of allowing the FDOC to operate the prison industries.

From 2007 to 2009 many things occurred that reinforced the concerns demonstrated by myself and Secretary McDonough: One of the companies stolen by PRIDE received a judgment against PRIDE's spin-off, Global Outsourcing (Pam Davis was the President of that one, Brewton was the attorney and resident agent of Global) for $31 million. Named in the suit? Davis and Mr. Mike Harrell (who gave testimony about PRIDE's successes at the House Sub-Comittee hearing in 1999). PRIDE hired Greenberg Traurig as their representative in one of the stolen business cases. Secretary McNeil that replaced McDonough has defied Governor Crist's demand that the FDOC take back the PIE Certificate, citing Departmental financial restraints (lest we forget, McNeil also holds McDonough's old seat on the Board of PRIDE and following his refusal to take back the certificate, PRIDE's Board in 2009 voted him the "best Secretary the FDOC has ever had").

So the important Certificate remains with and under the control of, PRIDE. Some wonder why this Certificate is worth fighting over when PRIDE only "trains" 2% or less of the inmates in FDOC and they're a "non-profit" corporation. Why put up such a battle over less than 2% of the inmates? Well because that certificate can only be held by one entity in the state issued and whoever holds it has control over which industries fall under PIECP and also over PIE industries being operated by private prison industries. The certificate allows PRIDE to sell their products upon the open markets of Florida and the holder of that certificate controls all PIECP operations in the state. Power, money and influence is attached to that piece of paper issued by the U.S. Department of Justice.

Complaints and documents I sent to Florida's Attorney General, Bill McCollum (yeah, that's right the same McCollum who chaired the House Sub-Committee Hearing back in '99) were forwarded by him to PRIDE's General Counsel, Ron LaFace (of Greenberg Traurig fame). Named in those documents were LaFace and PRIDE's long time spokesman and legislative liaison, Foster Harbin. I accused both of illegal or improper lobbying for PRIDE to amend a Florida statute to the benefit of PRIDE. Within days of receiving my complaint and the documents from McCollum, both LaFace and Harbin resigned their positions with PRIDE. And the crème de la crème? PRIDE hired Brewton back as their General Counsel. Now he is their resident agent, general counsel, lobbyists and sits on PRIDE's Board of Directors!

As I quoted from the Transition Team report yesterday, none of that legislation has made it out of committee, through "obstruction" provided by PRIDE's lobbyists in Tallahassee.

McDonough was able to clean up a huge state department rife with all classes of corruption, 28,000 employees and 100,000 inmates...but when he tried to clean up PRIDE - he ran into a brick wall and ultimately became another victim to their influence and power in the state capitol.

Now several years later, the F.B.I. and the Bureau of Justice Assistance are both investigating PRIDE and I certainly hope their findings result in mandatory prosecutions and a disbanding of the entire corporation.

So in the end all the important and influential players have taken up their positions within PRIDE and the FDOC. The incoming Governor's transition team is calling for reform of the FDOC and PRIDE and that the FDOC or state take back the PIECP certificate. This looks like it could become a nasty fight in the upcoming Florida Assembly - or will it? Scott is already known as purportedly being corrupt for defrauding Medicare through his business, so will he clean up both the department and PRIDE...or will he fall in with them?

Why should any of this matter to you? Because if you live in Florida thousands of your jobs have already been lost to or because of prison labor. If you live in any of the other 41 states operating under PIECP...you may have already lost one of the other thousands of jobs that have gone to prisoners...

Answer the poll and let me know

Poll
Will Rick Scott abolish PRIDE and clean up the FDOC? Or will he join them in further scamming Florida taxpayers?

Scott will clean up FDOC and PRIDE.
Scott will try, but fail because of PRIDE's influence with the legislature
Scott will ignore the advise of his transition team and leave both FDOC and PRIDE alone
Scott will cut himself into the corruption and money made from it.
Scott will resurrect and become the new head of the "Dixie Mafia".
I don't know
None of the above
| 29 votes | Results
COMMENTS to DK diary below

Tip Jar (15+ / 0-)
"Inmates should be reformed...not recycled"

by Bob Sloan on Thu Dec 23, 2010 at 05:22:42 PM PST
[ Reply to This ]
What an amazing diary. (8+ / 0-)
I am left wondering if one of the companies PRIDE 'installed' was yours?

I call insourcing OnShoring Labor.

The issue of private prisons and prison labor for profit and being the country with the highest percentage of incarcerated is really, really chilling.

You might enjoy this diary with a list of states and what their prisoners make:

Onshore Manufacturing - Cheap Prison Labor

by War on Error [Unsubscribe] [Edit Diary]

Sun Dec 21, 2008 at 08:53:06 AM PST

It's difficult to be happy knowing so many suffer. We must unite.

by War on Error on Thu Dec 23, 2010 at 06:03:55 PM PST
[ Reply to This | RecommendHide ]
Thanks and I read your diary linked above (5+ / 0-)
I read it and have to ask some of the same questions myself over and over again. Still haven't gotten a realistic answer to most.

This is why I didn't go near Onshoring when I began the series. These folks are busily trying to hook up small private sector companies with prison industries closest to their operation, so prison labor can replace their labor need.

They're prison labor brokers! Hard to believe anyone would choose that for an occupation, huh?

"Inmates should be reformed...not recycled"

by Bob Sloan on Thu Dec 23, 2010 at 06:20:50 PM PST
[ Parent | Reply to This | ]
Absolutely sick. (2+ / 0-)
Wonder what they're business card say on it...probably something stupid like

John Smith
Labor Infrastructure Analyst
US Prisons

You know what would be cool Bob....setting journalism students all across America on this story. Have them go to local area prisons and confront wardens regarding stories of prison labor. Then post the videos on facebook and youtube and political blogs, or maybe even send it in to their local television stations.

Hmmm...wonder if Mike Stark is still around. That dude is pretty aggressive with the confronting.

Sigh. Just thinking outside the box.

Hope you're doing well tonight Bob.

Bob Sloan: INSOURCING Slavery in the land of the free

by cosbo on Thu Dec 23, 2010 at 09:13:17 PM PST
[ Parent | Reply to This | RecommendHide ]
Thanks for stopping by and dropping (1+ / 0-)
such a neat suggestion. I wish I were able to coordinate something like that - journalism students.

However, it takes the mainstream media outlets with the most viewers to help get the work out, and they're mostly held by a few and won't say anything to upset owners - who may just have money invested in the likes of CCA.

Trying to get Christmas stuff done so Sunday I can put that behind - one more time, sigh...

"Inmates should be reformed...not recycled"

by Bob Sloan on Fri Dec 24, 2010 at 08:35:44 AM PST
[ Parent | Reply to This | ]
I wonder if the goal (0+ / 0-)
is to create a 'kinetic' system.

If prisons continue, and then succeed in bringing all the services needed to run/maintain the prison inside the prisons, they become a sort of "independent nation' operating within the communities they reside.

What is clear and impossible to defend is the reality, which your diary clearly points out, is that the US has created a huge Prison Industry.

Think about this. Robber Barons created/amassed great wealth with 'resources' that are freely provided by the earth, less the cost of extracting the resources.

Prisoners are a 'freely provided resource' for those morally bankrupt enough to profit from them.

Via poverty and neglect, the US 'manufactures' a 'cradle to prison' resource.

When will we the people be willing to push back against all that enables this travesty?

It's difficult to be happy knowing so many suffer. We must unite.

by War on Error on Fri Dec 24, 2010 at 08:31:47 AM PST
[ Parent | Reply to This | RecommendHide ]
We're pushing War on Error...we're pushing (1+ / 0-)
hard but it's all uphill right now. Many states have come to the conclusion that putting more and more in prison and using them for slave labor is not as cost efficient as previously. Some states have come to understand the real cost of prison labor is still borne by the taxpayers. I know they claim "prison industries are self sufficient, we take no tax dollars to fun our operations", etc. But...we taxpayers pay for the housing, clothing, feeding, medical and every other need inmates have. Once they walk out the cell door and go to work in the prison, the money they earn goes right back into the industry as profits...with their meager checks going into accounts so they can go to the stores and buy commissary that is sold by another corporation.

So we are paying for the total upkeep of the prison labor force with our funding. We keep their workers fed and ready to work.

"Inmates should be reformed...not recycled"

by Bob Sloan on Fri Dec 24, 2010 at 08:41:02 AM PST
[ Parent | Reply to This | ]
Why do images of... (3+ / 0-)
"Brubaker" and "Shawshank Redemption" spring to mind after reading this?!

In an insane society, the sane man would appear insane

by TampaCPA on Thu Dec 23, 2010 at 06:15:22 PM PST
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Hmmmm maybe because all of the players (3+ / 0-)
named in the diary watched both and that's where they got their ideas from? ;)

"Inmates should be reformed...not recycled"

by Bob Sloan on Thu Dec 23, 2010 at 06:22:05 PM PST
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Shouldn't this be done by the state? (2+ / 0-)
Why can't the states be in charge of their own prison systems? The whole community has a stake in this so it should administered by the state with auditors to make sure the goals of humane incarceration w/ rehabilitation takes place.
I find it hard to believe that the state could be as corrupt as these for profit scum suckers.

What do we want? Universal health care! When do we want it? Now!

by cagernant on Thu Dec 23, 2010 at 09:41:23 PM PST
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As I said in a response to GUGA below (0+ / 0-)
Scott just chose someone from the most corrupt of legal firms involved in assisting PRIDE - Greenberg Traurig - as his "Special Counsel" to oversee the Governor's Legislative agenda.

So the arguments put forth by his transition team appears to have gone up his nose rather than into his ear...the GT firm represents the very prison industry corporation that is causing all the problems (PRIDE) and he picks from that group? PRIDE is on safe ground, me thinks. So cleaning up the FDOC is nothing compared to what needs to be done with PRIDE and if he doesn't clean up both one will just feed off of the other.

"Inmates should be reformed...not recycled"

by Bob Sloan on Fri Dec 24, 2010 at 08:50:40 AM PST
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He was fined for fraud (1+ / 0-)
he stole money from Medicare. Instead of being in jail he is the governor.

Who do you think he will side with? The taxpayers of the crooks?

by GUGA on Fri Dec 24, 2010 at 05:15:01 AM PST
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Well I was holding out hope for his cleaning (0+ / 0-)
up the corruption...but sadly a news article was just released saying he has chosen a lobbyist from Greenberg Traurig as Special counsel :(.

"Scott appointed Hayden Dempsey, the former Bush aide, as special counsel to the governor who will also oversee Scott's legislative agenda. Dempsey is a lawyer and lobbyist at Greenberg Traurig and represented 13 clients before the legislature last year, including many health care concerns."So it looks to me that he wants to cut himself in on the free flow of tax money in Florida.

Such a shame, I really was hoping he would be different. Should have know by his brand (R)...

"Inmates should be reformed...not recycled"