Michigan prison privatization bid stalls / State's laws on minimum wage snag plans

Source: Karen Bouffard, Detroit News, February 8, 2012

A law requiring contractors to pay prisoners minimum wage is holding up a privatization push meant to shave up to $93 million from the state Corrections budget this year, officials confirmed Tuesday.

Requests for proposals to privatize roughly $400 million in prison services were put on hold in January after a review by Attorney General Bill Schuette's office revealed private contractors using prisoners for kitchen, janitorial and other duties would have to pay Michigan's $7.40 an hour minimum wage -- 10 times what unskilled prisoner employees are paid by the state....

...According to Marlan, the state hoped to save: $11 million on prisoner health services and $3.1 million on mental health services...$7 million annually by privatizing food services...

By Info Center on February 9, 2012 1:36 PM | Permalink |

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