California Prison Industry Authority

CALPIA’s Statutory Authority Authorized by Penal Code Sections 2800 through 2818.

CALPIA Statutory Purpose: (Penal Code Section 2801) (A) To develop and operate industrial, agricultural, and service enterprises employing prisoners in institutions under the jurisdiction of the Department of Corrections. (B) To create and maintain working conditions within the enterprises as much like those which prevail in private industry as possible, to assure prisoners employed therein the opportunity to work productively, to earn funds, and to acquire or improve effective work habits and occupational skills. (C) To operate a work program for prisoners which will ultimately be self- supporting by generating sufficient funds from the sale of products and services to pay all the expenses of the program, and one which will provide goods and services which are or will be used by the Department of Corrections, thereby reducing the cost of its operation.

Penal Code Section 2805 Provides that the authority shall have the power to establish new industrial, agricultural and service enterprises which it deems appropriate, to initiate and develop new vocational training programs, and to assume jurisdiction over existing vocational training programs. The authority shall have control over and the power to buy and sell all equipment, supplies and materials used in the operations over which it assumes control and jurisdiction.

What is CALPIA? CALPIA is a state operated entity reconstituted in 1983 that provides productive work assignments for inmates with an emphasis on rehabilitation through job training. (Previously, California Correctional Industries.) CALPIA is overseen by an 11- member Prison Industry Board (PIB) that is chaired by the Secretary of CDCR.

CALPIA Success in Reducing Recidivism The recidivism rate of CALPIA inmates is 25% lower than general population inmates. The recidivism rate for Career Technical Education (CTE) participants is 83% less than general population inmates. Incarceration cost avoidance from CALPIA correctional industries saves the General Fund $8.5 million per year. (Bureau of State Audits, May 2011)

CALPIA is Self-Sufficient CALPIA receives no Budget Act funding. CALPIA is only authorized to sell to government entities and limited non-profits that serve schools.

CALPIA Pricing CALPIA prices are lower than the private sector nearly 60% of time, which saved CALPIA’s five largest customers $3.5 million in FY For the remaining products, CALPIA is competitively priced. (Bureau of State Audits, May, 2011)

CALPIA Operates 5 Programs  Correctional Industries  Joint and Free Venture (On behalf of CDCR) Joint Venture Program = Adult institutions Free Venture Program = Juvenile institutions  Career Technical Education  Inmate Employability Program  California Identification Project (On behalf of CDCR)

CALPIA Correctional Industries (CI) CALPIA provides approximately 5,000 work assignments, serving 7,000 inmates annually. CALPIA operates 60 enterprises in 22 adult institutions. CALPIA produces over 1,400 goods and services. Inmates volunteer for CALPIA jobs. There is a long waiting list for inmates to work for CALPIA.

CALPIA Correctional Industries cont. Inmate workforce is provided by CDCR. CALPIA has limited ability to choose its inmate workers. Inmates have opportunities to earn industry skill certificates that help them find employment. Inmates earn wages of $.30 to $.95 per hour before deductions. Inmates must complete GED within two years to continue participation.

CALPIA Favorably Impacts California’s Economy  CALPIA supports California businesses.  Raw materials are purchased within CA.  CALPIA’s sales and in-state expenditures had a $497 million multiplying benefit for the California economy.  Household income impact of $132 million.  Total employment impact of 2,394 jobs. Source: January, 2010 study by associates of the University of Reno (

CI Benefits Recidivism rate of CALPIA participants is 25 percent lower than general population inmates. –Every ex-offender that does not return saves the state $49,000 per year. –Lower recidivism increases public safety. Keeping inmates busy makes prisons safer for staff and inmates. CALPIA inmates pay back society. Up to 40% of inmate wages are deducted for victim restitution and fees. CALPIA produces quality products. CALPIA is ISO certified. CALPIA is the only entity in the world that trains inmates to be certified quality control auditors.

JOINT AND FREE VENTURE PROGRAMS

The Joint Venture Program (JVP) was created under the state’s 1990 Prison Inmate Labor Initiative, Proposition

Joint and Free Venture The Joint Venture Program (JVP) and its sister program for juvenile offenders, the Free Venture Program (FVP), provide vocational training opportunities within California’s correctional settings. The JVP Program benefits both private interests and the public good. Private sector companies employ adult and juvenile offenders inside institutions and pay industry-comparable wages, which must be at least the California minimum wage. The JVP offers businesses attractive benefits.

Joint and Free Venture cont. The JVP complies with Prison Industry Enhancement Certification Program of the U.S. Department of Justice, which allows prison made goods to be traded in interstate commerce The JVP’s recidivism rate is approximately 9%. Counties may participate.

Joint and Free Venture deductions of inmates’ net wages (after taxes):  20% for room and board.  20% for restitution and victim compensation.  20% sent directly for child and family support.  20% deposited in mandatory savings account.  20% placed in account for personal use. 18

CAREER TECHNICAL EDUCATION

The Career Technical Education Program (CTE) provides real world vocational training in:  Carpentry  Construction labor  Iron working  Commercial diving

The CTE program increases the chance of post-release employment by enhancing vocational skills, promoting education, and providing employment assistance. The CTE program reduces the cost of public works projects.

CTE Recidivism Comparison The CTE program has a substantially lower recidivism rate than that of CALPIA’s enterprise participants and CDCR’s general population

Career Technical Education CTE re-incarceration cost avoidance since 2007/08: $11.8 Million

CAL-EXPO CTE Savings Example Labor Expense Cost Avoidance:  12 CTE project participants X 672 project hours = 8,064 CTE project hours  $64,512 typical labor cost (minimum wage $8 per hour).  $4,838 CTE labor cost (inmate wage $.60 per hour).  $64,512 - $4,838 = $59,674 labor expense cost avoidance. Additional savings are realized from re-incarceration avoidance.

Total CTE Savings Since FY 2007/2008 Re-Incarceration Cost Avoidance: $11.8 Million. Labor Cost Avoidance: $13.4 Million. Program Cost: [$9.7 million]. Total Net Savings to State: $15.5 million.

CTE Funding  The CTE program started in 2006 as a contract program for CDCR.  The program was originally intended to provide CDCR with modular buildings and facility maintenance services to fund the program.  CDCR demand for modular buildings has ceased and maintenance services opportunities have been slow to materialize.  CDCR no longer funds the program.  CALPIA currently spending $1 million per year for three small CTE programs.

CTE Funding cont.  CALPIA must look for other sources of funding to continue the CTE program.  The Prison Industry Board approved a legislative concept for an incentive-based direct appropriation to the CTE program that provides net savings to the General Fund (similar to SB 678, Leno, Chapter 2009).

Inmate Employability Program (IEP)  Adds new industry certifications.  Documents job skills, experience, work habits for future employers.  Connects parolees with employers.

California ID Project In September, 2010, the California Department of Corrections and Rehabilitation (CDCR), the California Prison Industry Authority (CALPIA) and the California Department of Motor Vehicles (DMV) agreed to work in collaboration to administer the California Identification Pilot Project (CIPP) for one year, at a cost of $378,000. Through this collaborated effort, more than 5,000 California Identification cards were distributed to the paroling population of nine institutions during the pilot period.

California ID Project Future CDCR has recommended moving forward with a planning team (CDCR, DMV and CALPIA) to implement a statewide California I.D. Program. CDCR needs to identify necessary funding to move forward with the statewide program. The impacts of realignment on the various institutions needs to be assessed in order to appropriately project the eligible population.

Statewide Average Inmate Assignments by Fiscal Year

Revenue & Employees

Impact of Realignment on CALPIA  20% reduction of CALPIA sales to CDCR ($19.9 M annually).  Potential reduction of approximately 725 inmate work assignments as a result of reduced CDCR sales.  Potential reduction of approximately 72 civil service positions, or 12% of civil service employees.  Potential reduction of available inmates for remaining production positions - will impact the CTE program and enterprises outside facilities, i.e. agriculture, food.

CALPIA’s AB 109 Planning CALPIA staff has developed an Enterprise Information Worksheet (EIW) based on CDCR’s Institution Activation Schedule (IAS), that clearly defines the needs of all CALPIA enterprises at every institution. The EIW includes key information for each location including:  Operating hours and enterprise locations.  CALPIA Enterprise needs - number of inmate workers required, inmate worker waiting pool required, and unique inmate criteria required (food handling clearance, no computer related crimes, etc.)  Current Enterprise Workforce Information – identifies the yard/facility inmates are drawn from, the total available inmate workforce, the total number of assignments on the yard/facility.

AB 109 Planning Cont. CDCR has adopted the CALPIA EIW format to identify CDCR programmatic resources. CALPIA will continue to monitor future IAS’s and utilize the EIW to track changes and continuity of operations.

CALPIA Summary CALPIA is a self-sufficient state entity. CALPIA participants have a 25% lower recidivism rate than general population inmates. Career Technical Education participants have an 83% lower recidivism rate than general population inmates. CALPIA increases public safety, prison safety and saves the state more than $8.5 million per year from lower recidivism and millions more from lower cost goods and services. Realignment will have a significant impact on CALPIA. CALPIA is good policy.

THANK YOU Please call to arrange a CALPIA enterprise tour: (916) Website: Calpia.ca.gov :Cal pia