Bureau of Correctional EnterprisesW i s c o n s i n D e p a r t m e n t o f C o r r e c t i o n s

Annual Report 2000

Bureau ofCorrectionalEnterprises

M ISSION STATEMENT

To make and maintain the Bureau of Correctional Enterprises program revenue appropria-tions solvent on a cash accounting system.

To maintain profitability of the Bureau of Correctional Enterprises program revenue appropri-ations on an accrual accounting system.

To become self-sufficient in terms of growth and recapitalization requirements.

To meet the employment and training needs of inmates and institutions.

To work with Wisconsin based manufacturers to ensure growth and minimize competition.

To introduce private sector businesses into the prison system to providejob opportunities and training.

To assist the Department of Corrections to become more self-sufficient.

Bureau ofCorrectional Enterprises Annual Report for Fiscal Year 2000

VISION STATEMENT

BCE is a valued program, in that it provides growing opportunities for inmate training and jobopportunities.

BCE is a respected business among its customers because of its quality, price and customer serv-ice. Customers buy BCE products and services by choice, not because of state use laws.

BCE is a self-supporting program overall, with many enterprises that regularly earn a profit.Badger State Industries will retain its current profitability while the Farms will decreasetheir indebtedness and eventually operate in the black. Community service programs

such as computer recycling will be sustained through grants or other supportwhile not designed to make a profit.

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Bureau of Correctional Enterprises Mission Statement Inside Front CoverLetter from the Secretary Page 1Statements 2Bureau of Correctional Enterprises Overview 3Fabrication Company 4-5Imaging Company 6-9Textiles Company 10-11Correctional Farms 12-13Transitional Project and Employment Partnerships 14Sales and Marketing/Administration 15Private Sector Ventures 16-17Prison Industries Board 17Department of Corrections Mission Statement Inside Back CoverFinancial Statement Insert

THE BUREAU OFCORRECTIONAL ENTERPRISES

The mission of the Bureau of Correctional Enterprises is accomplished through the Director and fiveSections representing Prison Industries, Correctional Farms, Enterprise Development, Financial Services and

Internal Operations. Although the Administrative Offices are located in Madison, the activities related toinmate training and employment are located throughout the State in or adjacent to most correctional facilities.

The Bureau constantly strives to offer the highest quality product at the most competitive price to its cus-tomers, as well as providing worthwhile training and job skills to its inmate employees. To achieve this goal,

the Industries and Farms must stay current with technological advances within their respective field. TheBureau of Correctional Enterprises Annual Report for Fiscal Year 2000 will provide an overview of the func-

tions of each operation, as well as the advances made during the past year within the operation. Throughconstant innovation and advancement, the Bureau of Correctional Enterprises hopes to play an important part

in Defining the Future for not only its customers, but its staff and inmate employees as well.

Table of Contents

CREDITSEditor.............................................................Steve KronzerContributors..................................................Steve Kronzer.......................................................................Mary Rondou..................................................................Regina Ylvisaker....................................................................Chuck DiPiazza

Production Manager........................................Dan JacksonTypesetting and Layout............................Regina YlvisakerPhotographs....................................................Robert Smith......................................................................Phoebe Young..................................................................Regina YlvisakerPrinting...........................................C.C.I. Printing Industry

THE BUREAU OFCORRECTIONAL ENTERPRISES

Table of Contents

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The Fabrication Company encompasses threeIndustries as well as design, warehousing, deliv-ery and installation services. The Upholstery

Industry, located at Oakhill Correctional Institution,upholsters the 29 different chair styles offered by BSIin any one of 1,000 different fabric selections availableto customers. A delivery truck based at OCI transportsfinished goods to delivery sites in and around theMadison area. Up to 30 inmates are employed full-time in various stages of the manufacturing process.

In December 1999, a new building for the operationwas completed. The new building is 7,600 square feetand has twice the storage capacity of the old space,which was located in the lower level of the institution’sschool building. The increase in square footage hasallowed the operation to better meet the increasingdemand for high-quality office furniture and shorterdelivery times. During fiscal year 2000, approximately15,000 chairs were manufactured and shipped, andsales topped $1.7 million.

At the Metal Furniture Industry located in WaupunCorrectional Institution, both free standing and sys-tems furniture are manufactured. The facility employs

70 inmates operating on two shifts, with annual sales totaling$6.3 million for FY00.

Recent technology upgrades within the shop include powder-coating equipment, a N.C. backgauge for the shop’s 135-tonpress brake, and a stroke sander for graining stainless steeltops used on institution dining tables.

Located at the Fox Lake Correctional Institution, theWood Furniture Industry manufactures a wide varietyof standard and custom wood furniture, including desks,

chairs, tables, bookcases and credenzas. It also creates compo-nents and does plastic lamination for System Furniture, thefinal assembly of which occurs at other BSI shops. One hun-dred inmates are employed at the shop. Sales during FY00were over $2.4 million.

Recently, a line boring machine was purchased for the opera-tion, which will be used primarily in the manufacture of book-shelves, as well as component parts for the FlexStation line.During 1999, an edge banding machine was added to the lami-nating department. This machine applies trims and shapesedge materials used in both wood and plastic laminated panels,and enables BSI to offer many different edge treatments tomeet various customer needs.

Design staff, located at the Bureau’s AdministrativeOffices in Madison, create office layout plans andinstall modular office furniture produced by the Metal

Furniture and Wood Furniture Industries. The staff workclosely with customers to determine their needs and ensurethat the most economical, efficient, and pleasant work spacespossible are created.

At the Industries Distribution Center (IDC) inWaupun, inmates from the John C. Burke CorrectionalCenter are employed aiding staff in the receiving,

warehousing, transportation and installation of systems furni-ture materials and supplies. From IDC, supplies are shipped tovarious Industries, and finished products are delivered to cus-tomers. Laundry pick-up and delivery services for a number ofState organizations are also provided by IDC.

Ergonomic chairs await shipment to customers in the new Upholstery building,which was constructed this year at OCI.

Powder coating paint booth, used in the Metal Furniture Industry at WaupunCorrectional Institution.

FABRICATION COMPANYFABRICATION COMPANY

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Edge banding machine, installed this year at the Wood Furniture Industry atFox Lake Correctional Institution, is used to apply trims to various types offurniture offered by Badger State Industries.

FABRICATION COMPANY LOCATIONS

Waupun Correctional InstitutionMetal Furniture

Fox Lake Correctional InstitutionWood Furniture

Industries Distribution CenterWaupun

Warehousing & Distribution

Oakhill Correctional InstitutionUpholstery

Administrative OfficesMadison

Design & InstallationQuality Control

Design staff, headquartered at the A dministrative Offices in Madison, design,install and repair modular office furniture offered by BSI. Above, IndustriesSpecialist Dick Dalieden completes an installation.

Inmates learn valuable trades while employed in theFabrication Industry. Above, inmates assemble panels forSystems Furniture.

At the Upholstery Industry, inmates are trained on a variety ofmachines, including the upholstery press, pictured above.

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Badger State Industries’ Imaging Company is com-prised of six Industries, located throughout the state.The Sign Industry, located at Waupun Correctional

Institution, manufactures traffic, street, trail, architectural andinformational signage for various State, local, county, and non-profit organizations. The Industry has capabilities to fabricatesigns in a variety of shapes, colors, and sizes up to 4’ by 8’ andlimited only by the customer’s imagination. Validation stickersfor the DOT are also manufactured at this location. Twenty-sixinmate employees work at the Sign Industry, which has annualsales of $2.5 million.

Technology upgrades within the Industry this year have includ-ed equipping computers with NT software and CAS programs,the purchase of a 48” plotter, 54” ink jet printer plotter, a scan-ner, and color printer, which together enable the shop to dolarge format printing of stickers, lexan, signs, etc.

Also located at the Waupun Correctional Institution isthe Metal Stamp Industry. This shop employs 40inmates and produces a wide range of license plates

for the Wisconsin Department of Transportation. Sales inFY00 totaled $3.5 million.

A new contract was recently negotiated with Avery Dennisonto supply the graphic sheeting required for the rebased licenseplate design, which began production on March 1, 2000. Aspart of the new contract and change in design, a new applicatorwork station was installed and the plate blanking line wascompletely refurbished. The change in license plate design,coupled with the partnership with Avery Dennison and newequipment, will enable the Industry to increase productionfrom 800,000 sets of plates per year to between 1.2 and 1.4million sets per year. An automated envelope stamper was alsopurchased, which allows for faster processing of the envelopesused to package the plates.

The Silkscreen Industry, located at TaycheedahCorrectional Institution, is capable of printing virtuallyany garment, including hats, T-shirts, jerseys, sweat-

shirts, tote bags, and jackets, as well as stickers, signs andfolders. Silkscreen product sales are limited to State agencies.Ten female inmates are employed at the facility. Annual salesfor FY00 totaled $330,000.

Through the purchase of updated software and equipment, theSilkscreen operation continues to improve and expand its prod-uct line. Software advancements have allowed the graphicsdepartment to provide a larger variety of choices to customerswho wish to design their own logos and layouts, as well asoffer more font, color, size and configuration options. TheIndustry is now able to produce larger quantities of superiorquality signage with very short turnaround times due to therecent acquisition of a computerized engraver. This machinealso expanded the available standard product line to includetactile and Braille signage.

Printing services are offered to State agencies and non-profit organizations by the Printing Industry, located atColumbia Correctional Institution. Services provided

include typesetting, scanning and disk conversion, camera andfilm preparation, offset and litho printing, four-color process,post press, duplicating, and mailroom services. The Industryalso produces temporary license plates for the DOT. Thirty-eight inmates are employed at the operation, which had annualsales of $1.1 million for FY00.

Several new machines were purchased by the operation thisyear to help keep up with the changing technology throughoutthe printing industry. They include a new perfect binder, anItek camera, a digital copier, and a Macintosh G-4 and scanner.

IMAGING COMPANYIMAGING COMPANY

The license plate sheeting machine, pictured above, is one of several newmachines installed at the Metal Stamping Industry during the past year. Licenseplate production will increase by at least 50% as a result of the retooling.

Inmates learn how to use state-of- the-art imaging equipment, like the digi-tal copier pictured above, at the Printing Industry located at CCI.

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IMAGING COMPANY LOCATIONS

Taycheedah Correctional InstitutionScreenprinting

Waupun Correctional InstitutionSignage & Metal Stamping

Columbia Correctional InstitutionPrinting

Female inmates at the Taycheedah Correctional Institution ScreenprintingIndustry learn their trade on the newest technology available within theindustry. The computerized engraver, shown here, allows for much short-er turn-around times. I t is one of several new machines purchased thisyear that give inmates the most up-to-date training possible, and skillswhich will be highly marketable upon their release.

Inmate employee at the Columbia Print Industry works on the newPerfect B inder, purchased this fiscal year.

One portion of the production work performed at the Metal StampingIndustry that is not technologically advanced is the envelope stampingprocess. Inmates use the machine pictured to hand-stamp the envelopesin which license plates are mailed. The machine is new, however, andreplaced an antiquated stamper which was used by the shop for manyyears.and virtually worn out.

Perhaps the most widely recognized product produced by the ImagingCompany, the Wisconsin license plate, was redesigned this year. Therebased plates, shown above, have slightly modified graphics and blacklettering, which is much clearer and easier to read.

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The Imaging Company also operates two Data EntryIndustries, located at Racine Correctional Institutionand Robert E. Ellsworth Correctional Center. These

Industries provide data entry and processing services for avariety of State and local agencies and a private company.Being sensitive to privacy concerns, inmates are given noaccess to financial transaction data, social security numbers,data on children, or other sensitive data. Seventy-one maleinmates are employed by the shop at RCI, and 18 females areemployed at REECC. Annual sales for both shops totaled$92,000 for FY00.

E-mail capabilities were recently provided to the staff at bothfacilities, allowing for more efficient communication withother Industries and administrative staff, as well as current andprospective customers. Faster and more reliable data transferin any format is now possible due to e-mail access as well.United Parcel Service (UPS) shipping software will be addedto allow for pick-up and delivery of Madison PoliceDepartment parking tickets during January - August. This willsave the city money in both transportation and equipmentcosts. Microsoft Access was installed in the catalog depart-ment to make catalog inventory and mailing list updates moreefficient, and is also being used to track time cards, updateinmate employee reports and track shop sales trends. Inmatesworking on Department of Transportation projects use state-of-the-art mapping software to verify reference points for auto-mobile accidents throughout the State. Plans are being devel-oped to network staff and inmate employees’ computers with-in RCI to allow for monitoring of inmate work quality andeffectiveness. All of these upgrades will allow for higher qual-ity customer service and provide inmate employees with skillsthat will prove useful in finding a job upon release.

Also operated by the Imaging Company is theComputerRecycling Project, a program funded by State recy-cling funds. The Project has two main goals: to reduce

the amount of information technology equipment deposited inWisconsin landfills, and to provide low-cost PCs for educationand training purposes to State agencies and non-profit organiza-

tions, including day cares, preschools, senior centers, andschools. During fiscal year 2000, 54,000 pieces of technologi-cal equipment were donated to the project, and 800 completeunits (including CPU, monitor, keyboard and mouse) wereremanufactured. Sales of completed units totalled $9,200.From the project’s inception in 1997 through November 1999,200,000 pounds of waste have been kept out of Wisconsin’slandfills through the dedication and efforts of the staff andinmates involved in this program.

At the Racine Youthful Offender Correctional Facility,up to 38 male inmates between the ages of 16 and 21work in the Computer Recycling Industry demanufac-

turing donated computers. The usable equipment is t ransport-ed to Taycheedah Correctional Institution, where 13 femaleinmates are employed testing, cleaning, formatting and assem-bling the PC components for sale to qualified agencies andorganizations.

Although both of these operations deal primarily with older,used equipment, it does not reduce their need for new technol-ogy to improve the efficiency and quality of their production.During the past year, a new baler was purchased for thedemanufacturing operation at RYOCF, which is capable ofcompacting eight Gaylord boxes of recyclable plastic into onebale, thus making better use of the limited storage space avail-able at the institution. Additional warehouse space was rentedat RYOCF for storage of donated items, and two pallet jacksand a walk-behind fork truck were purchased to make move-ment of items more efficient and safe. At TCI, new worktableswere purchased from the Fox Lake Furniture Industry toimprove the workspace within the operation. Updated refer-ence manuals and upgrading books were also purchased, andspecifications for refurbished PCs were developed. Staffmembers at both institutions now have access to e-mail, allow-ing for more efficient communication between Project staff,administrative office personnel, and customers. Staff at bothfacilities are being trained in A+ Certification, the nationallyrecognized certification for the computer repair industry.

An inmate at the Racine Youthful Offender Correctional Facility inspectsdonated computer equipment and prepares it for demanufacturing. Shownin the background are Gaylord boxes filled with donated items collected fromprivate individuals, companies, and State agencies throughout Wisconsin.

Female inmates at the Taycheedah Correctional Institution assemble com-puter components for resale to non-profit organizations and governmentalagencies.

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IMAGING COMPANY LOCATIONS

Taycheedah Correctional InstitutionComputer Refurbishing

Racine CorrectionalInstitution

Data Entry and Processing

Racine Youthful OffenderCorrectional Facility

Computer Demanufacturing

Robert E. Ellsworth CorrectionalCenter

Data Entry and Processing

The warehouse used to store donated and completed computer equipment at RYOCF isfilled to capacity on a daily basis. Additional warehouse space was leased this year tohelp solve this problem.

At TCI, all donated computer equipment that is consid-ered saleable is thoroughly tested by trained inmates.

Daycare centers are among the many non-profit organizations that benefitfrom the affordable computers available through the Computer RecyclingProject. Above, children at a daycare explore PCs donated by the Program.

Many of the organizations and agencies that purchase computersthrough the Computer Recycling Project have limited resourcesand would be unable to fund such equipment without the afford-able prices of units and donations of PCs made by the Bureau.

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Jackson Correctional Institution is home to one of the twoTextile Industries operated by the Textiles Company.This Industry produces inmate clothing and other institu-

tion textiles. Thirty inmates are employed in a variety of posi-tions, including production sewing, product inspection, handand automated cutting, and mechanic. A teamwork environ-ment is employed within this Industry, utilizing sewing teamsto decrease throughput time and production costs, whileemphasizing good working and communication skills. Salesfor this operation increased almost 200% during FY00.

During the past year, production began on inmate work pants,pullover shirts, gym shorts, and a line of clothing for Stateinstitutions. Also introduced were washcloths, towels, sheets,pillowcases, and shower curtains. Overall, 33,000 pieces ofnew inmate clothing were produced during 1999.Additionally, a contract was signed with a Native AmericanNation to produce uniforms and accessories for workers,which will eventually provide more employment opportunitiesfor inmates. Plans for the upcoming year include expansion ofthe current clothing line to include more inmate apparel, bid-ding for county jail clothing, and expanding the product linewith the Native American Nation.

Several new machines and accessories have been installedwithin the Industry during the past year, including folders andguides added to existing sewing machines to enable the pro-duction of products with more efficiency and consistency. Aslitting machine was purchased, which allowed material to becut in-house, thus reducing production costs. Automated cut-ting equipment is being used to cut material for clothing, and afour-head computerized embroidery machine was purchased toimprove the quality and efficiency of the embroidery process.

Oshkosh Correctional Institution is home to one of thetwo Industries Laundries operated by BSI. This shopemploys 99 inmates on three shifts, six days a week.

Thirteen State institutions are serviced by this shop, as well asseven linen rental accounts, including the University ofWisconsin. Recently, the Experimental Aviation Association inOshkosh became a linen rental customer as well. The Oshkoshlaundry processes over 5 million pounds of laundry per year,with annual sales for FY00 totalling $1.1 million.

Two Industries are operated out of the Green BayCorrectional Institution. The Textiles Industry pro-duces innerspring mattresses for the UW system, as

well as institution mattresses and pillows. Inmate clothing,including shirts, pants, coats and underwear, is also producedat this Industry. Thirty inmates are employed at this location.Sales for FY00 topped $1 million, an increase of 49% fromlast fiscal year.

To aid in tracking production time and increase efficiency,the use of production tickets was recently introduced in theTextiles operation at GBCI. Through the use of the tickets,individual inmate production times are able to be captured,thus allowing the shop to set production standards and work

with inmate employees to achieve and maintain a standard pro-duction level.

Also located within GBCI is the second IndustriesLaundry. Laundry for fourteen correctional facilitiesthroughout the State is processed at this location.

Laundry is picked up from the institutions on a daily basis,cleaned, ironed, folded, and returned to the customer the fol-lowing day. This operation employs fifteen inmates on oneshift.

TEXTILES COMPANYTEXTILES COMPANY

Inmates at the Oshkosh Correctional Institution working at the Laundryprocess laundry for thirteen State institutions and seven linen rental accounts.Pictured above are the industrial-grade clothes dryers used in the industry.

The Textile Industry located at JCI recently purchased a new four-head com-puterized embroidery machine. Training inmates on the most up-to-dateindustry machinery is one way that the Bureau strives to teach inmateemployees the most marketable skills possible, giving them the edge need-ed to gain employment earning a competitive wage upon release.

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TEXTILES COMPANY LOCATIONS

Green Bay Correctional InstitutionLaundry & Textiles

Oshkosh Correctional InstitutionLaundry

Jackson Correctional InstitutionTextiles

Inmate employees at the Jackson Textiles Industry learn the skills of production sewing.The use of production tickets within the Textile Industry will enable production toincrease in both quality and quantity, as inmates’ progress and products will be monitored.

Inmates at the Jackson Textiles Industry are trained on a variety of com-puter-operated machines, including the Gerber automated cutting machinepictured above.

An inmate employee at the Green Bay Textiles operation com-pletes production of an innerspring mattress with the tape edgebanding machine.

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CORRECTIONAL FARMS

Correctional Farms have been an important part of theBureau of Correctional Enterprises for many years.The Waupun State Farm, located in Waupun, is the

largest of the Farms under the authority of the Bureau, andemploys inmates from the John C. Burke Correctional Center.On the Farm., inmates learn various skills, including animalhealth and care, breeding, planting and harvesting of crops,equipment maintenance, and milking parlor operation. Farmsat Fox Lake and Oneida are also operated by the WaupunFarm. The Oneida Farm employs inmates from the Sanger B.Powers Correctional Center, and is primarily a beef feedingoperation, housing 600 head of Holstein steers. Up to 52inmates are employed at these three operations.

The Waupun Farm has seen significant growth during the pastyear. Forty-five additional cows were purchased to meet thegrowing demand for milk at State correctional institutions.The herd has been producing at record highs for much of thepast year. Above normal yields of corn and soybean were pro-duced as well. A new mixer was purchased for the Farm,which will allow for more efficient and accurate ration produc-tion. Two new heads for the combine, one for small grain har-vesting and one for corn., were obtained, in anticipation of thecombine being used to harvest at all Correctional Farms nextseason. A new field cultivator and corn planter were also pur-chased, and a new tractor leased, which together will make thetilling and planting process, as well as harvesting, more effi-cient. The Oneida Farm will expand cropping in the next year,which will be made possible in part by the updated equipmentpurchased by the Waupun Farm.

The Oregon State Farm is a 850-acre farm located adja-cent to the Oregon Correctional Center, just outside ofOregon. Up to 135 milking cows and 1,200 hogs are

housed on the Farm, and 300 acres of corn and 150 acres ofhay are raised annually. Forty-six inmates are employed on theFarm, which is staffed by six full-time correctional officers.

Several pieces of newtechnology were pur-chased for the Farmduring the past year. Amilk pre-cooler wasobtained to cool themilk before it reachesthe main coolerthrough the use of amixture of water andantifreeze, which circu-lates around the pipecarrying the milk. Theuse of this processreduces the load on themain cooler, thusextending its life andefficiency. Milkingunits with automatictake-off were also pur-chased this year. Theunits are preventativedevices, which work tolower the risk of mastitis and prevent over-milking the cows.Overall, this leads to healthier, happier cows producing largervolumes of milk. A feed and forage tester was also obtained,which weighs and cooks forages and displays moisture and rel-ative feed value of the finished product. Through the use ofthis machine, higher quality rations will be provided to theherd, thus maximizing the nutritional value of the availableforages.

The Waupun Dairy operates adjacent to the John C.Burke Correctional Center in Waupun, and employs 28inmates from the Center. Milk from both Waupun and

Oregon Farms is processed at the Dairy and sold to 25 Stateinstitut ions through Mapleton Dairy, a private contractor.Raw cream separated from the whole milk is sold to GraffCreamery. On average, the Dairy produces over 2,500 5-gal-lon containers and over 70,000 half-pints of skim and 1%milk per week. The Dairy processes 666,000 pounds of rawmilk per week.

During the past year, plans were laid for the production of icecream at the Dairy. Within the next year, the production offour-ounce cups of ice cream for institution use is scheduledto begin. The Dairy also switched to production of five-galloncontainers of milk, replacing the six-gallon buckets previouslyproduced, reducing the amount of packaging required. Thishas resulted in savings of approximately $16,000 per year.

CORRECTIONAL FARMS

The calf barn, pictured above, was built at the Waupun Farm during 1999.It replaced the calf huts that the Farm had used previously, and has madethe calves healthier and more productive.

Harlyn Buwalda was promoted fromSergeant at the Waupun State Farm to FarmManager at the Oregon State Farm inNovember 1999. Harlyn is pictured with oneof the piglets raised at the Oregon Farm.

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A t the Oregon Farm, conventional milking practices are still employed,unlike the Waupun Farm, which operates a parlor milking system. A bove,an inmate from the Oregon Correctional Center leads a cow into her stan-chion in preparation for the evening’s milking. Pictured in the foreground isthe cart carrying teat dip, which sanitizes the cow’s teats prior to milking.

CORRECTIONAL FARM LOCATIONS

Oneida State Farm

Waupun State FarmWaupun Dairy

Oregon State Farm

Pictured above is the parlor milking system at the Waupun Farm. Theparlor system set up increases comfort for the herdsmen, as they areable to work in an upright position; is more efficient than conventionalmilking systems; and is generally used for larger herds.

A new mixer was purchased this year by theWaupun Farm, which will mix higher qualityrations and improve the overall quality of the herd.

Inmate employees at the Waupun Dairy package half-pints of milk for delivery tocorrectional institutions throughout Wisconsin. During the upcoming year, theDairy will begin production of ice cream pints for institutional use.

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The Bureau of Correctional Enterprises administers sev-eral non-profit community service programs withinWisconsin’s correctional institutions. The Wheelchair

Recycling Program operates out of the Fox Lake CorrectionalInstitution and Lincoln Hills School. Wheelchairs that aredonated to the Program are transported by Industries’ vehiclesto the institutions, where they are cleaned and repaired byinmates participating in the program. Completed chairs arereturned to the Program’s headquarters in Madison, where theyare made available at no cost to individuals who do not haveinsurance to cover the cost of a wheelchair and cannot affordto purchase a chair themselves.

Operating at the Black River Falls and GordonCorrectional Centers, the Mobile Home RecyclingProject is another community service program man-

aged by the Bureau. The Project enables older mobile homes,that might otherwise be placed in landfills, to be donated to theProject through dealers who are members of the WisconsinManufactured Housing Association. The homes are transportedto one of the participating correctional centers, where they arerefurbished by inmates participating in the Project. Whenfinished, the homes are sold to low-income individuals for thecost of materials and transportation. Twelve inmates partici-pate in the project, which renovated 6 homes during FY00.Inmates at a number of facilities also participate in Habitatfor Humanity building projects.

In addition to providing inmates with employment andtraining opportunities while incarcerated, the Bureau pro-vides support to released inmates through its Transitional

Community Placement Project (Transition). The Transitionproject is a BCE initiative that targets inmate workersemployed by Badger State Industries, Farms, or projects suchas computer, mobile home or wheelchair recycling. Inmateswho are scheduled to be released to one of four counties -

Dane, Kenosha, Winnebago and Outagamie - make up the pilotproject group. The Transit ion project concept grew from anoriginal DOC budget request to provide more to inmates in theway of job readiness, job placement, and support in the com-munity upon their return.

Features of the project’s design include: formalized job andwork orientation; certification of on-the-job training; teachingof employability skills; job readiness training; skills upgrade;community stabilization programs; linkage to existing jobplacement services; and other necessary follow-up services.These expanded skills and services build on the foundation ofwork ethics andjob skills train-ing that inmatesacquire whileemployed inCorrectionalEnterprises(PrisonIndustries,Farms, andCommunityServiceProjects).Efforts expend-ed on givinginmates trans-ferable, job-spe-cific andemployabilityskills will paydividends upontheir return to thecommunity andin loweredrecidivism rates.

An initial project steering team was convened in late 1998 bySteve Kronzer, Bureau Director. It included representativesfrom DOC’s Office of Education, Budget Office, CommunityCorrections, Prison Industries Board, BCE and two counties’enhanced supervision projects. Subsequently, a smaller workgroup, comprised of three BCE shop supervisors and a BCEsuperintendent, was formed. Since July of 1999, this workgroup has been responsible for making BCE employment moreclosely resemble employment on the outside. Initial steps arein place that will lead to documentation and certification of jobskills that inmates are acquiring.

In February 2000, an inmate who worked for Prison Industrieswas released to Dane County supervision and successfullygained employment related to the job she had held inIndustries. Thus, while Transition remains a work in progresswith many pieces yet to be fully developed, inmates and thecommunity are starting to receive the benefits of Transitionservices.

Mobile homes are refurbished by inmates atBlack River Falls and Gordon CorrectionalCenters. Completed homes are sold to lowincome families..

Inmates at various correctional institutions and centers throughout theState participate in the Habitat for Humanity building project. Inmatesbuild interior and exterior walls and cabinets, and design landscapingplans for finished homes.

EMPLOYMENT AND TRAINING PROGRAMSEMPLOYMENT AND TRAINING PROGRAMS

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SALES AND MARKETINGSALES AND MARKETING

Electronic commerce is widely seen as the next revolu-tion in sales and marketing. The State of Wisconsin hasmade great strides in establishing a web presence for

obtaining information from State agencies, as well as purchas-ing State services on-line. Many customers, from large Stateagencies and universities to small non-profit organizations, arebuying on-line. Thus, it is only logical that the products andservices available from BCE be offered in this fashion as well.During the past year, BCE has begun development of a web-based catalog and related on-line purchasing abilities.

The first and primary goal of the web site is to increase cus-tomer satisfaction by improving communications with cus-tomers. BCE will strive to achieve this goal by offering more,complete product information on-line, by establishing quick-response e-mail connections to sales and customer service staffand by offering customers the opportunity to check the statusof their order on-line. BCE plans an interactive site that willwork for both customers and BCE.

The second major goal of the BCE web site will be to offeron-line purchasing. This function will serve customers in sev-eral ways. Anyone with Internet access can view products. Inaddition, in some cases involving prior authorizations, the enduser can enter their own order, dramatically streamlining theprocurement process. On-line ordering will serve BCE also,by giving order entry staff more time to perform customerservice....the number-one goal.

Other plans for the web site include informational sectionsabout the Bureau describing the Bureau’s goals and mission, aswell as employment opportunities available within BCEadministrative offices and Prison Industries. Case studies willbe available to illustrate many successful projects. It will alsogive customers a virtual tour of BCE facilities. The Bureau ofCorrectional Enterprises is proud of the Industries, Farms, pro-grams, staff, and products, and the web site will be an opportu-nity to share this pride with BCE customers.

ADMINISTRATIONADMINISTRATION

This past year saw a major change in the approach theBureau took in planning for Bureau programs. Foralmost eight years, the Bureau produced Long Range

Plans and Business and Marketing Plans. These plans werereviewed and approved by the Prison Industries Board andDepartment Secretary, with progress reports being producedeach quarter. This process tended to be very detailed to out-comes and responsibilities for those outcomes. This past year,the Bureau moved to an approach of Strategic Planning, withan accompanying Sales and Marketing Plan.

The Strategic Plan built off the Mission and Vision Statementof the Department of Corrections, which is published in thisdocument. A Mission and Vision Statement for the Bureau wasestablished and is also included in this document. TheStrategic Plan additionally identified Key Strategic Issues andGoals, Objectives, Strategies, and Performance Measures.

The Sales and Marketing Plan differs from the previousBusiness and Marketing Plan in that it doesn’t simply record

what the Bureau is going to accomplish, but also how theBureau is going to accomplish it’s sales goals and whatresources are needed to accomplish those goals.

In addition to a Strategic Plan for the Bureau, separateStrategic Plans were produced which relate to the Bureau’sCommunity and Public Relations efforts and for the ComputerRecycling Program.

Despite this shift to a Strategic Planning approach, theBureau has not lost sight of the need to plan specificwork efforts, including assigning timelines and respon-

sibilities for completing these efforts. This type of planning,however, has become part of the formalized workplans forindividual Bureau Sections and units.

This change in approach to planning has permitted theBureau’s planning to link with the Department’s planningefforts and to define our future.

16

Fiscal Year 2000 was a year of change forWisconsin’s Private Sector/Prison IndustriesEnhancement Certification Program (PIECP).

This year, the federal Department of Justice, which over-sees the PIE program, published revised guidelines. Inaddition, the Wisconsin Department of Administrationapproved modifications to the Request for Proposal(RFP) process by which private business partners areselected and evaluated. Nevertheless, in the midst ofthese adjustments, the mission and vision of the programremained unchanged. These important program changes,along with other improvements, keep Wisconsin’s PIEprogram on track for a successful future.

Congress created the PIE program in 1979 when itapproved legislation that exempts certified state and localdepartments of corrections from restrictions typicallyplaced on the sale of inmate-made goods in interstatecommerce. The program establishes a “level playingfield” for involved parties; allows inmates to make acontribution to society, offset incarceration costs, com-pensate crime victims and provide family support; andpresents the opportunity for reduction of inmate idleness,improved inmate job skills, and successful reintegrationinto the community upon release.

The first major change for the PIE program came in 1999when the Department of Justice received final approvaland published a revised set of PIE program guidelines.The new guidelines apply administrative experience forthe regulating office, the Bureau of Justice Assistancewithin the Department of Justice. Participating stateswere required to be in full compliance with all of thenew requirements by April 2000. Modifications provideprogram clarification and address legal issues relative to:

� Certification eligibility at the state and local level, the“umbrella authority;”

� Payment of prevailing wage rates;� Determination of non-inmate worker displacement;� Acceptable deductions to inmate wages;� Voluntary PIE inmate worker participation;� Consultation with organized labor;� Consultation with local private industry;� Compliance with the National Environmental Policy

Act (NEPA).

Another modification for Wisconsin’s PIE program camewhen the State’s Department of Administration approveda Department of Corrections’ request to make the RFPprocess more “user friendly” and more attractive toprospective business partners. In November 1999, theRFP was reissued without the typically restrictivetimetable, which in the past proved to be a problem formany potential partners. The new open-ended privatesector partner solicitation and selection process has andwill continue to generate increased interest in the PIEprogram.

PRIVATE SECTOR /PRISON INDUSTRIESENHANCEMENTCERTIFICATIONPROGRAM

PRIVATE SECTOR /PRISON INDUSTRIESENHANCEMENTCERTIFICATIONPROGRAM

A New Partnership Process With Future PotentialA New Partnership Process With Future Potential

Inmates at the Jorgensen Conveyors, Inc. operation at WaupunCorrectional Institution are taught metal fabrication and assemblyskills, while being paid wages equal to the prevailing wage forsimilar work in the private sector. The project has been non-operational for much of the past year, due to a decline in orders.I t is anticipated that the operation will be up and running again atWCI within the year 2000.

17

Inmates at the Fabry Glove and Mitten operation, located at JacksonCorrectional Institution, prepare material for cutting. Fabry Glove andMitten is one of two certified PIE projects within Wisconsin correctionalinstitutions.

Currently, there are two certified PIE projects inWisconsin. The Fabry Glove & Mitten Companyhas partnered with BCE’s Textile Industries’

sewing operations at Green Bay and JacksonCorrectional Institutions. At present, the second partner,Jorgensen Conveyors, Inc., is not operational. As aresult of slower than anticipated sales over the last year,Jorgensen is meeting all production needs in-house. It isanticipated that a demonstrated increase in orders willcontinue and the project will resume at WaupunCorrectional Institution during fiscal year 2001. A thirdpartnership with Helgesen Industries, Inc., a metal fabri-cation shop based in Hartford, Wisconsin, has receivedfinal approval from the Prison Industries Board andawaits authorization by the Joint Finance Committee. Ofthe six partnership opportunities authorized by the legis-

lature, three remain available. A number of interestedbusinesses, at various stages in the selection process, willsubmit proposals for review in 2000.

The changes made this year affecting the PIEProgram will stimulate interest in the program,provide for a more complete review of proposed

projects, and expedite the partner selection and evalua-tion process. These modifications will not, however,alter the program’s objectives. In the future, the PIEprogram will continue to place inmates in a realisticworking environment, pay them the local prevailingwage for similar work, and enable them to acquire mar-ketable skills to increase their potential for successfulrehabilitation and meaningful employment upon release.

Since its initiation in June 1996, Wisconsin’s PIE program has paidout over $2.5 million in gross inmate wages. The deductions frominmate wages, June 1996 through June 2000, are detailed below:

INMATEWAGES

FEDERALTAXES

STATETAXES

CRIME VICTIMS

PROGRAMMAINTENANCECHILD

SUPPORT

Prison Industries Board

The Prison Industries Board is a committee com-prised of professionals from the business, labor,and governmental communities. The main focus

of the Board which is appointed by the Governor withapproval of the Senate, is to review and approve longrange plans, new industry programs, budget requests andmajor purchases.

Jon E. Litscher ......................Department of CorrectionsLyle Balistreri..............................................Private LaborRobert Blessington......................................Private LaborRonald Engelke ......................................Private BusinessBill Gronley ................................................Private LaborJanet Hamik ......................Department of AdministrationJohn Phillips ......................Vocational/Technical SchoolsCarol Vollmer Pope ................................Private BusinessBill Smith ................................................Private Industry

Member Representing

17

DEFINING THE FUTURE.....

As we move into the 21st century, the Bureau of Correctional Enterprises continues to play an important role in Definingthe Future for the inmates of the Wisconsin Correctional System by providing education, training, and work opportunities

which will enable them to create a positive future for themselves upon release into the community. It has been shownthat inmates employed in Bureau programs have lower recidivism rates. Additionally, these programs are producing

skilled workers; workers who are giving back to the community by participating in community service programs, andwho, through wages earned, are contributing to incarceration costs and other crime victim funds. Taken together, the

Bureau of Correctional Enterprises and its work and training programs are making a positive impact on society as well.

Through innovative new programs, new technologies, and new partnerships, the Bureau will continue to strive to be aleader in the correctional field and make positive changes in the lives of many people.

DEFINING THE FUTURE.....

Printing Industry at Columbia Correctional Institution. Computer Demanufacturing at Racine Youthful Offender Correctional Facility.

Metal Stamping Industry at Waupun Correctional Institution. Silkscreen Industry at Taycheedah Correctional Institution.

17

REVENUE

EXPENDITURES

Personnel Services:SalariesFringe BenefitsTotal Personnel Services

Supplies & Services:Raw MaterialInmate WagesOther Supplies & ServicesTotal Supplies & Services

Capital

TOTAL EXPENDITURES

CASH PROFIT

FUND CONDITION STATEMENTYears Ending June 30, 2000 and June 30, 1999

FYE 6/30/00 FYE 6/30/99

BEGINNING BALANCE $568,294 $464,058REVENUE $20,361,892 $19,329,728EXPENDITURES ($19,335,898) ($19,225,492)ENDING BALANCE $1,594,288 $568,294

FYE 6/30/99

$19,329,728

3,246,8031,100,3794,347,182

11,042,308672,435

2,773,95014,488,693

389,617

$19,225,492

$104,236

FYE 6/30/00

$20,361,892

3,390,4881,132,3244,522,812

10,884,812528,793

2,848,81114,262,416

550,670

$19,335,898

$1,025,994

PRISON INDUSTRIES

STATEMENT OF REVENUE AND EXPENSESYears Ending June 30, 2000 and June 30, 1999

REVENUESYear Ending June 30, 2000

Prison Industries(Invoiced)

Metal Stamping . . . . . . . . . . . . .$3,546,626Laundry . . . . . . . . . . . . . . . . . . .$1,499,180IDC . . . . . . . . . . . . . . . . . . . . . . . . .$7,729Textiles . . . . . . . . . . . . . . . . . . .$1,543,421Data Entry . . . . . . . . . . . . . . . . . .$192,210Signs . . . . . . . . . . . . . . . . . . . .$2,501,031Screen Print . . . . . . . . . . . . . . . . .$329,338Print . . . . . . . . . . . . . . . . . . . . .$1,106,444Wood Furniture . . . . . . . . . . . . .$1,236,416Metal Furniture . . . . . . . . . . . . .$1,868,066Systems Furniture . . . . . . . . . . .$5,634,783Upholstered Products . . . . . . . .$1,695,329Total . . . . . . . . . . . . . . . . . . . .$21,160,573

CASH PROFIT AND LOSSYears Ending June 30, 1994 through 2000

Prison Industries(Cash Basis)

2200

2000

1600

1200

800

400

0

Thou

sand

s

1998

1999

20001994 1995

1996

1997

REVENUE

EXPENDITURES

Personnel Services:SalariesFringe BenefitsTotal Personnel Services

Supplies & Services:Raw MaterialInmate WagesOther Supplies & ServicesTotal Supplies & Services

Capital

TOTAL EXPENDITURES

CASH PROFIT

FUND CONDITION STATEMENTYears Ending June 30, 2000 and June 30, 1999

FYE 6/30/00 FYE 6/30/99

BEGINNING BALANCE ($4,980,201) ($5,209,956)REVENUE $2,763,127 2,711,874EXPENDITURES ($2,655,505) (2,482,119)ENDING BALANCE ($4,872,579) ($4,980,201)

REVENUESYear Ending June 30, 2000

Correctional Farms(Cash)

Dairy - Processed . . . . . . . . . . .$1,887,785Dairy - Bulk . . . . . . . . . . . . . . . . . .$15,259Livestock - Beef . . . . . . . . . . . . . .$376,556Livestock - Swine . . . . . . . . . . . . .$181,068Crops . . . . . . . . . . . . . . . . . . . . . .$218,784Other . . . . . . . . . . . . . . . . . . . . . . .$83,675Total . . . . . . . . . . . . . . . . . . . . .$2,763,127

Correctional Farms(Cash Basis)

240

280

200

160

120

80

40

0

Thou

sand

s

2000

1994

1995

1996

1997

1998

1999

FYE 6/30/00

$2,763,127

224,14984,768

308,917

137,359192,027

1,819,2192,148,605

197,983

$2,655,505

$107,622

FYE 6/30/99

$2,711,874

207,35274,249

281,601

179,211203,803

1,635,7232,018,737

181,781

$2,482,119

$229,755

CORRECTIONAL FARMS

STATEMENT OF REVENUE AND EXPENSESYears Ending June 30, 2000 and June 30, 1999