Prison industry programs feel pinch of economy

By Cy Ryan

Thursday, June 17, 2010 | 2:05 a.m.

CARSON CITY — Not only has private business felt the economic pinch, but the slowdown has also hit the inmate industrial programs in the Nevada State Prison system.

The number of prisoners working in these programs for private companies has fallen from 786 in July 2008 to 496 in April.

“This is directly tied to the economy,” says Brian Connett, deputy director of the state Department of Corrections.

He said private companies are either closing or reducing operations at the prisons.

The latest program to close was Shelby American, which has made auto parts at the Southern Desert Correctional Center in Clark County for about 15 years.

Connett told the Legislative Committee on Industrial Programs that Shelby “could not come to grips with laying off their employees in Las Vegas but keep the inmates working.”

Shelby paid $40,000 a year to lease the 15,000 square feet at the prison and $190,000 to cover the room and board cost for the inmates. It also contributed $38,000 to a victim’s fund.

This results in a loss of 45 to 55 inmate jobs.

Connett said there are no prospects to replace Shelby. But he said the prison is promoting its low lease and labor costs to entice another company to set up shop.

The prison system is owed $1.4 million in back payments by industrial companies that operated at the various locations. Connett estimates about $850,000 is uncollectable.

For instance, TJ Wholesale, which ran a card-sorting business at the High Desert State Prison, went bankrupt.

“They no longer exist,” Connett said. Another company purchased TJ Wholesale but did not buy the debt, he said.