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New Contracts Pull Wisconsin Prison Industry Out of Red for 2012

Fiscal year 2012 was a profitable year for Badger State Industries. A memorandum from the Wisconsin Department of Correction (WDOC) to the co-chairs of the Joint Committee on Finance shows WDOC’s prison industries gained $3.6 million for the year.

At the end of FY2011, Badger State Industries had a cash deficient of $7,939,000. It blamed the red ink on the “economic situation.” Thanks to an order of “systems furniture” from the Department of Military Affairs and University of Wisconsin Systems in FY11, WDOC’s prison industry collected $2,938,800 in revenue by delivery of those orders.

The memorandum attaches the 2012 cash balance summary by industry and shows where money was made or lost in FY2012. Systems furniture netted $3,723,800. Laundry services netted $31,600. Metal stamping profited $627,400 and Printing earned $21,300. Wheelchair refurbishing had an $800 profit.

On the loss side, nonprofit operations, such as management and support, the distribution center, and transition program lost $421,200. The sign shops had a $385,600 loss, and textile services lost $10,100.

With the strength of the military and college contracts, Badger State Industries had gross revenues of $20,099,070 and expenditures of $16,491,700 for a total profit of $3,608,000. That helped the industry dig itself out of the red, leaving it with a cash shortfall of $4,331,000. 

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