Program A: Prison Enterprises

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

PROGRAM DESCRIPTION

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

The goals of the Prison Enterprises Program are:

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

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

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

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more efficiently in order to maintain an appropriate profit margin thereby allowing for needed recapitalization of aged/outdated equipment and facilities.

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

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

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

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

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

OBJECTIVES AND PERFORMANCE INDICATORS

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

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

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

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

SOURCE OF FUNDING

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

ANALYSIS OF RECOMMENDATION

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

PROFESSIONAL SERVICES

OTHER CHARGES

ACQUISITIONS AND MAJOR REPAIRS