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Private Industries

by Cheryl Cadue last modified Jan 08, 2014 10:53 AM
Through the private industries program, LCF participates in both prison- and non prison-based ventures with private corporations.

Among participating companies are: Impact Design, Jensen Engineering, Heatron, Henke Manufacturing, United Rotary Brush, Zephyr Products, BAC Inc., CompuChair, VW Services, Reimers Furniture Manufacturing and Prime Wood. These programs have a far-reaching benefit aside from assisting an inmate in gaining work skills and strengthening their work ethic. Inmates employed in the program are required to pay the following from their weekly paycheck:

  • employer deductions
  • federal income tax
  • state income tax
  • Social Security tax
  • correctional facility deductions
  • room and board deductions which is 25% of gross wages as well as $2.10 per day for transportation to and from work
  • dependent support - the inmate is responsible to pay all court-ordered support
  • victims compensation - each month 5% of gross wages is deducted and paid to the crime victims compensation reparation board unless the inmate is paying court-ordered restitution
  • court ordered payments - any payment of victim's compensation or dependent support mandated by a court decision is deducted and forwarded to the proper authority
  • mandatory savings - after the deductions noted above, 10% of the inmate's remaining salary is deposited in a savings account for disbursement to the inmate only upon release from custody

Upon deducting the mandatory deductions, the remaining net balance is placed into the inmate's institutional account. Typically upon release, an inmate receives $100 "gate money." Yet upon release, an inmate is immediately responsible for rent, utilities, transportation, food, etc. The funds in the inmate's mandatory savings provide the inmate with a better opportunity to succeed from a financial standpoint during the transition back into the community. Also, the inmates assigned to private industry typically do not receive the $100 "gate money" due to the mandatory savings, thus, additional savings to the tax payers.

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