Decision ’96 : Prison Isn’t Just Another Job : Prop. 194 is needed to end unemployment insurance eligibility

In 1990, when California voters approved the Joint Venture Program to allow businesses to hire inmates to work while they were in prison, the intention was not to create an undeserved employment benefit. This March, voters will have a chance to close the loophole in the law by voting yes on Proposition 194.

When the initial proposition was passed, it seemed a good idea to allow hiring in prisons because it meant keeping inmates busy and productive and it taught them a skill. It is still a sound idea, but voters should modify that part of the law that has to do with unemployment benefits.

In addition to giving prisoners a trade that might help them survive once they leave incarceration, the program provides earnings that have a number of benefits. A percentage of salaries is set aside to aid the victims of prisoners’ crimes. Another part is withheld for the support of prisoners’ families, and a further percentage goes to reimburse the state for the cost of housing and food. The prisoners keep the rest. Also, some inmates in the program earn credits that reduce their time in prison.

The problem is that the law provides that the inmates are eligible to collect unemployment benefits after they leave prison. That is simply wrong. Prisoners finish their time in prison and are released, not laid off. They should not be entitled to unemployment benefits based on prison jobs.

Proposition 194 corrects that defect in the 1990 initiative and bars unemployment insurance benefits based on a prisoner’s participation in a joint venture business.

Even though federal officials have warned that the passage of the measure may violate certain standards, thus risking the loss of federal tax credits for California businesses, we believe that once the new initiative has been approved by the voters, state and federal authorities will be able to work out a solution to this problem.