Prison life and strategies to decrease recidivism upon an inmate?s release from prison to include:


An analysis of the purposes for prisons in the US justice system.
An examination of current conditions in US prisons.
A review of programs which seek to reduce recidivism in modern prisons.
A discussion about rehabilitative programs in prisons.
An analysis of re-introduction to society programs, or the lack thereof.
Current approaches to protect the public upon a prisoner?s release.
New proposals to help protect the public and ensure that a prison does not re-offend upon release.

? : Prison Comparison Contrast Paper

define and examine the theory and ideal of a penitentiary. Be sure to take into account historical factors and precedence in your evaluation, and compare and contrast prison systems during WWII and after WWII. What was the impact and involvement of prison labor during this time period? What has been the trend of prison labor since?
? Describe the jail?s place in corrections and its role throughout history.
? Identify jail problems.
? Explain the reasons for the growth of state prison systems.
? Examine the differing security levels in state and federal institutions.
? Describe the history of state and federal prisons.

Need an 8 page paper not including references on prison life and strategies to decrease recidivism upon an inmate?s release from prison.
Paper should address,
An analysis of the purposes for prisons in the US justice system.
An examination of current conditions in US prisons.
A review of programs which seek to reduce recidivism in modern prisons.
A discussion about rehabilitative programs in prisons.
An analysis of re-introduction to society programs, or the lack thereof.
Current approaches to protect the public upon a prisoner?s release.
New proposals to help protect the public and ensure that a prison does not re-offend upon release.

PPPs are unique and come in myriad forms. Examples of major types of PPPs are operations and maintenance; operations, maintenance, and management; design-build; design-build-maintain; design-build- operate; design-build-operate-maintain; design-build-finance-operate- maintain; design-build-finance-operate-maintain-transfer; and turnkey. For these and other types of PPPs, duties/responsibilities for both public and private parties will differ.

Scenario: State X has a growing prison-infrastructure crisis. State prisons are at double capacity, while crime continues to rise. Meanwhile, county and municipal jails are maxed out, and the state cannot afford to keep transferring prisoners to out-of-state corrections facilities. Barring the option of releasing prisoners and relaxing the standards for criminal conviction, the state desperately needs new prisons. Moreover, existing facilities are falling apart? increasingly below acceptable architectural and public-health standards? but the state is facing a major budget deficit, and the public is opposed to spending much needed dollars on improving living standards for convicted criminals.

Directions:

Write a 4-6 page paper outlining one or more possible PPP arrangements for remedying State X?s growing prison-infrastructure problem.

In your paper:

?Differentiate among the possible PPP types.
?Discuss the pros and cons of possible solutions to the prison- infrastructure problem.
?Make the case for selecting one solution over the others.
?Detail a proposed financing structure for the arrangement selected.
In addition to fulfilling the specifics of the assignment, a successful paper must also meet the following criteria:

?Length should be 4-6 pages, excluding cover page and references; in 10-12 point font (Arial, Courier, and Times New Roman are acceptable).
?Assignment should follow the conventions of Standard American English (correct grammar, punctuation, etc.).
?Writing should be well ordered, logical and unified, as well as original and insightful
?Your work should display superior content, organization, style, and mechanics
?Appropriate citation style should be followed.

Walpole state prison located in Massachusetts

Requirements of the Research Paper

Goal: To enable a student to serve in the role of a security threat consultant in a prison.


Description: The student will select a prison to research to learn the historical background of the prison, and identify how the prison deals with diverse gangs as inmates, and identify a violent incident that has occurred involving gangs at this prison. The student will analyze the causes, responses and outcomes of the incident. The student will then create a security plan that if implemented, would have prevented the incident. Creative thinking is highly encouraged in this research paper.

Format: Your paper should follow APA guidelines and be a minimum of 4 pages (title page is not counted), double spaced, 1" margins, paginated, print style New Times, and print size 12 point. APA Link http://www.apastyle.org/ Label each section of the paper. Place your paper in the dropbox.


Required Research Paper Sections:

Title Page - List the title of your research paper.
Introduction Section - The Introduction Section describes to the reader the following information:
Name of the prison facility
Location of the prison
Staff and inmate population (include ratio of staff to inmates)
Description of the Security Threat Unit (does it have one?)
Historical background of the prison
Profile of the Gangs at the Prison
Which gangs are present at the prison
Which gangs are alliances and which are at odds
Describe the composite (race, etc.) of each gang and their ideology
Description of the Violent Prison Incident
Who, Want, When, Where, How, Why....and
What factors motivated the violent incident
Who was involved
Any injuries, death, collateral damage or damage to the prison
How was the violent incident quelled
What impact did the incident have on the gangs and prison security
Your Security Threat Plan Recommendations
What action would you have taken and Why?
What would you have done differently?
What resources would you have use?
What prior planning would you have taken to deal woth this type of incident?
What training would you have provided to staff?
What changes would you have made to the prison?
Summary Section - Provide a closing to your paper.
Reference Section - Cite any references (your research paper must have references)




Your research paper should demonstrate a comprehensive presentation of your thoughts. Demonstration of Critical Thinking Skills is imperative for the research paper. The students may exercise creativity and thinking outside of the box is highly encouraged for this paper.







Guidelines for the grading of the research paper will consider the below rubric:

Category
Superior

Contribution
Proficient

Contribution
Sufficient

Contribution
Insufficient

Contribution

Organization and Structure
Information is highly organized, provides a strong sequential presentation, presents a main idea, hypothesis or research question followed by strong supporting details, and presents logical relationships between all topics and subtopics.
Information is highly organized, provides a sequential presentation, presents a main idea, hypothesis or research question followed by supporting details, and presents logical relationships between all topics and subtopics.
Information is organized, provides a sequential presentation, presents a main idea, hypothesis or research question followed by supporting details, and presents logical relationships between all topics and subtopics.
Information is not organized, does not provide a sequential presentation, does not presents a main idea, hypothesis or research question followed by strong supporting details, and does not present logical relationships between all topics and subtopics.

Quality of the Information
Demonstrates a superior level of critical thinking skills. Illustrates a superior scholarly presentation.
Demonstrate a proficient level of critical thinking skills. Illustrates a proficient scholarly presentation.
Demonstrate a sufficient level of critical thinking skills. Illustrates a sufficient scholarly presentation.
Demonstrate an insufficient level of critical thinking skills. Does not illustrate a scholarly presentation.

Understanding of Concepts and Issues related to the topic
Demonstrates a superior application of concepts, issues, and reading materials presented in the course. Presents a superior level of creativity.
Demonstrates a proficient application of concepts, issues, and reading materials presented in the course. Presents a proficient level of creativity.
Demonstrates a sufficient application of concepts, issues, and reading materials presented in the course. Presents a sufficient level of creativity.
Demonstrate an insufficient application of concepts, issues, and reading materials presented in the course. Presents an insufficient level of creativity.

References, Sources, guidelines and use of APA
Demonstrates a superior application of references and sources that significantly contributes to the integrity of the work. All guidelines for the paper and use of APA are followed and applied to the work.
Demonstrates a proficient application of references and sources that significantly contributes to the integrity of the work. Majority of guidelines for the paper and use of APA are followed and applied to the work.
Demonstrates a sufficient application of references and sources that contributes to the integrity of the work. A substantial amount of guidelines for the paper and use of APA are followed and applied to the work.
Demonstrates insufficient application of references and sources that significantly contributes to the integrity of the work. Guidelines for the paper and use of APA are not followed and applied to the work.

Mechanics
Well organized with complete sentences, correct spelling, and appropriate grammar and punctuation.
Well organized with complete sentences, minimal spelling errors, and appropriate grammar and punctuation.
Complete sentences, minimal spelling errors and minimal grammatical and punctuation errors.
Not well organized, incomplete sentences, spelling and grammatical and punctuation errors.

This is the opening paragraph that I have with the thesis statement being the last sentence:
The recent global recession has brought light to a problem that existed long before, although not to the severity that it does right now. Many states in the United States are facing massive budget shortfalls. In response these budget problems many states are coming up with ideas to help with the problem. One of these solutions has many pros and cons to them; however, the pros significantly outweigh the cons. State prison inmates should be paroled early to help control the states budget problems.

This is guideline for the research paper:
The Position Paper is a formal paper in which the learner selects and argues a position on an issue. The purpose of the
paper is to convince the reader to take the argument seriously. Therefore, acknowledgment of readers opposing views,
objections, or questions should be included. The learner will use scholarly journals, books, and periodicals to support his
or her assertions.

Describe and analyze the history of state and federal prisons.
In the analysis, compare and contrast the differing levels of security in state prisons and federal prisons, as well as the reasons for growth in the state prison systems.

Instructions

Activity Overview And Objectives
Overview

Write an in depth analysis

Identify involved stakeholders and their motivation.
Evaluate the event from various dimentions such as social psychology, planning logistics, and finance management.

the prisons culture and how the inmates have had to adapt to that culture and the roles of the staff inside the prison vice the one they were use to on the outside. Also, how each of the prisoner?s everyday have to learn and adapt diversity to different people whether it be of different inmates or the prison guards. Also, they have to learn to deal and live many other inmates from many different ethnic backgrounds that they may never have associated with or may have had rival gangs with against them. They are having to learn everyday as they face many different situations, and many different people if they are going to make the choice that will change their life for that moment, that day, or the rest of their life or possible their families life. As many of these inmates say in this prison for a extended amount of time they are going to be there for permanent staff change or even every day they have to experience a staff change and not every prison guard they are going to get along with as some they may but some they will face conflict with but they have to decide on how they are going to handle that conflict or keeping it to themselves or meditating on it or acting on it and becoming violent and hurting someone, this would even come into play when a change of inmates take place within the rooming situation too many disagreements can take place during this time as this is where the inmates spend the most of their time.

Detailed Event Overview:

What was the purpose of the event? History?
Why did you select this event (i.e. what was your motivation)?
Who were the event stakeholders? What were their motivations to be involved with this particular event?
In what ways did the event setting contribute to positive/negative experience?

Theme: unifying concept that gives event meaning (script, timing, style, quality)

Service Design: other supporting factors (visible and invisible staff contacts)

CDRC. (2013). California State Prison, Corcoran (CSP-COR). Retrieved August 4, 2014 from
http://www.cdcr.ca.gov/Facilities_Locator/COR.html.
Shaw, D.R. (2009).Warden Derral Adams One-Year Audit. Retrieved August 6, 2014 from http://www.oig.ca.gov/media/reports/ARCHIVE/BOA/Audits/Warden%20Derrel%20Adams%20One-Year%20Audit,%20Corcoran%20State%20Prison.pdf.
Rodriguez, S. (2012). Corcoran State Prison Inmate Commits Suicide in Solitary. Retrieved August 6, 2014 from
http://solitarywatch.com/2012/10/19/corcoran-state-prison-inmate-commits-suicide-in-solitary/.
St.John, P. (2013) Court experts cite 'serious' healthcare risks at Corcoran prison. Retrieved August 7, 2014 from
http://prisons.einnews.com/article/161057067/jrpGKHrWmZXOXTKc.
Guterrez, M. (2014) California prisons' solitary units - necessary or inhumane? Retrieved August 8, 2014 from
http://prisons.einnews.com/article/194363756/Gn384d6S6KH5b4Ca
Palta,Rina. (2013) Hard time or inhumane punishment? Inside the Corcoran prison SHU ? Security Housing Units Retrieved August 8, 2014 from http://www.scpr.org/news/2013/10/08/39613/inside-corcoran-state-prisons-security-housing-uni/.
Arteaga, A. (2012) Essay: Solitary Confinement In California. Retrieved August 8, 2014 from http://prisonerhungerstrikesolidarity.wordpress.com/2012/12/12/essay-solitary-confinement-in-california/.



Essay Format

Standard font type and size 12 pt.

I first want to clear that I need "5 book sources" done. The rest can be Internet. So at least 5 books, and the other 5 can be internet. I have sources sorted from internet that I want you to use. They are explained below:

In the following paper I want research information on rehabilitation of men and women prisoners. With this research, I want to find who are better rehabilitated, men or women? This paper will examine various aspects of rehabilitation of prisoners and the different approaches that can be tried for the rehabilitation of men and women in prison.

(Paragraph 1)Rehabilitation of Prisoners: In this section I want discussed what rehabilitation program does to both men and women. I will talk about how rehabilitation prepares a prisoner for when they are released back into society. The prisoner will have a task of their own, depending on the prison or even the country they are in. (Howell 2001)Prisoner rehabilitation is essential for the society so that it can have upright and useful working for its gain rather than unhappy or unproductive person.

(Paragraph 2) United States Prison Statistics: In this section I want to go over population of men and women in prisons. I will find out how these people made it there. Also, I will research how much money is put into these overcrowded prisons. Perhaps rehabilitation and the expenses that are associated with it may be the reason why capital punishment exists. (University of Virginia 2004).

(Paragraph 3) Some Prison Rehabilitation Programs: I want, elaborate on programs such as education and work for these inmates in this section. States such as Oregon and Missouri that introduced appropriates jobs to the prison system. Also, Prisons plans for inmates nowadays are to overcome problems such as mental, social or educations that inmates are lacking through literacy program, drug treatment or job training. (Day, 2004).

(Paragraph 4) Women Prisoners and Rehabilitation: This part of the paper will be going over the increase of women in prison. My research will be comparing women with men in prisons. Women prisoners are assigned tasks that are of a female?s roles, such as laundry or in the kitchen. (McClellan, 2004). Education programs are available for women prisoners, as well as men. I will discuss the cost of female prisoner compared to male prisoner.

The following are internet sources I want used please:

(1) Julie Browne. ?The Labor of Doing Time.? 2004. California Coalition for Women Prisoners. April 5, 2004. http://womenprisoners.org/fire/000160.html

(2) Susie Day. ?Cruel but Not Unusual: The Punishment of Women in U.S. Prisons.? July 2001. Monthly Review. April 5, 2004. http://www.findarticles.com/cf_0/m1132/3_53/77150229/p1/article.jhtml

(3) Kevin Howells. ?Treatment, management and rehabilitation of women in prison: relevance of rehabilitation principles.? 2001. Australian Institute of Criminology, Conference on Women in Corrections. April 5, 2004. http://www.google.com.pk/search?q=cache:XWVKiuWv79IJ:www.aic.gov.au/conferences/womencorrections/howells.pdf+rehabilitation+of+men+and+women+prisoners&hl=en&ie=UTF-8

(4) Dorothy S. McClellan. ?Coming to the aid of women in US prisons.? June, 2002. Monthly Review. April 5, 2004. http://www.findarticles.com/cf_0/m1132/2_54/87424635/p1/article.jhtml

(5)University of Virginia. ?Women in Prison: References.? 2004. University of Virginia. April 5, 2004. http://curry.edschool.virginia.edu/prisonstudy/subpages/references/references.html

Sources 6-10 I want BOOK SOURCES ONLY please...

Needs to include an INTRODUCTION, a THESIS STATEMENT, a BODY, and a CONCLUSION. Must have a Work Cited page. **The research paper must support information on how "The population in state prisons has shifted the past 10 years".(Which is the TOPIC)!

This case study focuses on the building of a new women?s state prison in the town of Pocatello, Idaho. There are several key issues that will present themselves in the decision of building the new prison. Interest groups, politicians, and citizens will become highly involved in the decision making process of building the prison. This case study will seek to identify the rational and nonrational approaches to policy analysis. The key issues will be presented and analyzed. Solutions to the problems presented will be discussed and the possible costs and benefits of the solutions will also be reviewed. This case study is an example of how politics can heavily influence the decision making of public problems and policy.

Please submit an eight- to ten-page Final Research Paper focusing on prison life and strategies to decrease recidivism upon an inmate?s release from prison. At a minimum, students? research and information for the research shall include the following:

An analysis of the purposes for prisons in the US justice system.
An examination of current conditions in US prisons.
A review of programs which seek to reduce recidivism in modern prisons.
A discussion about rehabilitative programs in prisons.
An analysis of re-introduction to society programs, or the lack thereof.
Current approaches to protect the public upon a prisoner?s release.
New proposals to help protect the public and ensure that a prison does not re-offend upon release.
Students can supplement their papers with interviews of people involved in the field of corrections; provide scientific data and analyses justifying the positions taken in the paper and any other scholarly or practical references which lend credibility to the paper and the findings presented. Students must incorporate at least three resources (scholarly or interviews) in their Research Paper.

Must begin with an introductory paragraph that has a succinct thesis statement.
Must address the topic of the paper with critical thought.
Must end with a conclusion that reaffirms your thesis.
Must use at least three scholarly resources, including a minimum of two from ProQuest
Must document all sources in APA style


Please use scholarly sources from ProQuest along with
Textbooks

Seiter, R. (2011). Corrections: An introduction (3rd ed.). Saddle River, NJ: Pearson Education, Inc.

Worrall, J. (2008). Crime control in America: What works? (2nd ed.). Boston, MA: Pearson Education, Inc.

Case Study

The assignment is to read the following Case Study. It describes a correctional institution with inherent problems and issues. Identify the issues, state why they are issues and make recommendations on how to improve the organization.

You will write a report that addresses the issues and problems.
Content requirements: Your report should include the following:

an introductory section that explains the purpose of the paper
your reflections on the agency and its administration
the body of the paper, which addresses the six previously mentioned factors
a "Works Cited" section, in which you reference the text or other sources, that must be properly documented and cited

Case Study (Fact Pattern)

On January 29, 2010 at the Mermon Correctional Facility 30 miles northeast of Washington, DC (in Maryland) a Correctional Officer ??" Marsha Wills (female ??" 34 years old - 9 years experience) was murdered by a male prisoner serving a life sentence for multiple sex crimes. It was the first murder of a Correctional Officer at the state prison complex. After the murder the prison was ordered to be locked down until the State Police completed their investigation. That investigation is now over and the Police will conduct the filing of criminal charges.

Initial reports suggest that this inmate was able to remain in the Prison Chapel and attack the Officer after others had departed from religious services. He was found hiding in the immediate area and the nature of the murder appears to be strangulation with an electric cord.

John James, 52 years old received a non-parole eligible mandatory life sentence after a 1997 conviction for first degree rape and kidnapping under the Washington three strikes sentencing guidelines. His past had included offenses for sexual violence against women. James reportedly had no violence in his prison behavior since a 2001 incident where he attempted to take his own life. The inmate first arrived as a maximum security offender due to the nature of his offenses. The inmate was given the privilege to attend religious services and has access to other parts of the prison because of good behavior, as are many prisoners, even those with life sentences to serve.

Officer Wills was assigned alone to the Chapel post and did not have a radio with her. She had apparently expressed concern about staffing levels and may have questioned whether a single officer was sufficient for a post where many inmates attended programs and religious services. During the time of her murder, it was not noticed that she was missed for an unknown period of time. Staff members are outraged and afraid and very critical of the administration by raising concerns about staffing levels and budget reductions. Prison managers suggest that budget reductions were not responsible for this senseless act of extreme violence. Public comment is calling for everything from the termination of senior Department of Corrections Officials to permanent 24 hour lockdown of all inmates who have carried out violent acts against women to mandatory staffing of multiple Correctional Officers at every security post in every prison in Washington State regardless of the cost and budget impact.

Tension is enormous and labor and management are very angry with each other. Inmates talking through public advocate lawyers have argued that they did not commit this act of violence and should not be penalized for the behavior of a single inmate.

Format Requirements

APA format

Double space

12 pt. font

1 margins

Use APA citations for all sources

Include reference page using APA format guidelines (not included in word count)

Specific statements from supportive sources should be cited in the narrative of the paper as well as identified in the references. General references should also be included in the references. APA citation format is required. Grading will be based on the thoroughness of the examination of each segment, strength of the basis for decisions and supportive sources.

Ethical dilemmas permeate the criminal justice. At every level, in each segment of the system, people are exercising discretion that will impact on the fate of an individual and/or the security of the community. Incongruous laws, regulations, policies and practices create conflicts and distort the basis upon which judgments are made. Very often these conflicts result in an ethical dilemma. Which is the appropriate course of action? What is the moral/ethical rational for the decisions that were made? What purposes or principles are served? This project will ask you to consider a sequence of decisions (do, or not do) all of which contribute, directly or indirectly the final scene. For each of the four (4) scenarios, your assignment is to:

Examine each situation and describe the ethical and/or moral question,
Describe what you believe to be the motivation of the actor and the potential consequences of BOTH options,
Identify the decision you believe the actor SHOULD make, and
Provide the ethical basis for your decision.
NOTE: The scenarios are sequential. However, each decision must be considered separately and not be influenced by earlier decisions and/or actions. For instance, the decision to fund/not fund a new prison does not impact on a later decision to sentence a convicted felon to incarceration. The sentencing dilemma is independent.
-------------------------------------------------------------------------------------------------------------

1. The Parole Board

As the chair of the parole board, Robert knows the state prisons are critically overcrowded. Advocates are threatening the corrections system with Federal suits. One alternative is to broaden the parole eligibility criteria to allow more inmates to be released to community-based supervision. However, reviewing the current risk assessment results, Robert is concerned that any further relaxation of standards may result in the release of inmates more likely to re-offend than he considers safe. Robert just received a call from the Governor asking him what the parole board can do to ease the overcrowding that will be the basis of the federal law suits. The Governor reminds Robert that if these suits are successful, inmates will be released under a federal process outside the parole boards control. What does Robert, as chair of the parole board, tell the Governor?

2. The Warden

William is the warden of a century-old correctional facility. Despite his best arguments, his operating budget was severely cut for the fiscal year that just started which eliminated overtime for correctional officers and froze hiring of replacement employees. Almost all of the rest of his budget is dedicated to food and medical services for inmates, and fixed utility costs. He was staffed for his average population (same as capacity population), but those numbers have skyrocketed due to an aggressive arrest and prosecute campaign. The facility is dangerously overcrowded with no foreseeable sign of relief. The major problem is staffing. William is concerned for the safety of his employees as well as the inmate population. He thinks that if his officers feel threatened they may report off for medical reasons, resign or simply not report for duty; any of which would only exacerbate the problem. William does have an off-site work release program which could handle the additional inmates. However, there is no risk assessment or screening process in place which means the designation of inmates to community-based work release would be based on unsupported security guess work. The union representatives for the security officers have a meeting with William to hear how the warden intends to ensure the safety of his members. How does William respond?

3. The District Attorney

Martha ran a successful campaign for district attorney on a very conservative platform generally critical of plea bargaining and reduced prison sentences for convicted felons. The citys police chief, following his mayors directive to take back the streets from gun-toting drug dealers has launched a very aggressive arrest campaign, resulting in a dramatic increase in criminal cases. A review of sample cases clearly shows many of these arrests lack supportive probable cause and/or have very weak evidentiary support. As cases, most are losers. Martha knows from the criminal records that most of the arrestees are heavily involved in the citys drug culture, even if the current case is weak. She also knows that anything other than aggressive prosecution of these cases will portray her as unsupportive of the mayor and the police and reneging on her campaign pledge. Marthas chief of staff has asked her for some directive to her prosecutors as to how she wants these cases handled (trial, plea bargain, dismiss, etc.). What direction should Martha give?

4. The Officer

About 3:00am on a deserted street corner, Linda, a police officer confronts a young man acting in a manner which she recognizes from her experience and training as consistent with the mannerisms of a drug-deal look-out. Linda confronts the man and asks for his identification. She also asks him if he would empty his pockets for her. From one pocket the officer has recovered several vials which she recognized as crack cocaine; in the other pocket she finds $400 in cash. Linda remembers her sergeant at roll call chastising other officers for bringing in petty drug cases that just take time from patrol and clog the system. The department is getting complaints about overloaded dockets from the prosecutors office and there is no more room in the local jail. Earlier, in the locker room, fellow officers were griping about their colleagues who make themselves unavailable to handle calls for service because they are off processing some time-consuming minor arrest. With his pockets now empty, the subject still has not produced any positive identification. At this point Linda knows nothing about the suspect... and she can't find out unless she arrests and charges him so the suspect can be fingerprinted and positively identified... and Linda can't arrest and charge the suspect without the contraband. At this point the police dispatcher calls for Linda and asks if she is available to serve as back-up for a burglary in progress call. What does Linda tell the dispatcher?



Format Requirements

Paper should be a minimum of 3,000 words in APA format

Double space

12 pt. font

1 margins

Use APA citations for all sources

Include reference page using APA format guidelines (not included in word count)

Key Issues Before Correctional Officers

Part 1:

You work for the State Bureau of Prisons in the Office of the Inspector General as an attorney and have been asked to review two key issues involving several correctional officers at your state prison and the conduct of the attorney assigned to represent these officers.

The officers claim that several inmates assaulted them and caused them bodily harm. Such an assault automatically mandates an additional two years to the inmates' prison term should the allegations prove to be true.

During the interviews and subsequent hearing surrounding the allegations, one of the inmates makes the following arguments:

?He and the other inmates were falsely charged.
?The earlier interviews and hearings involving him and the other inmates were conducted by the warden and the chief correctional officer.

You are aware of this practice but have no evidence. You suspect abuse and misconduct on the part of the prison administration and correctional officers.

Write a 4- to 5-page report in Microsoft Word document analyzing:

?The ethical issues at stake and whether there is an ethical violation of the legal code.
?How you will decide the case, based on the facts of the case and your research?
?How you will justify your decision, based on the facts of the case and your research?

Correctional Officer Misconduct Memo

If you find there was misconduct on the part of the warden and the correctional officers and they are not disciplined, what would be your next step? Explain in detail if and why you would:

?Go to the warden's supervisor or someone in the State Bureau of Corrections.
?Let the issue go and ignore things from this point onward.

For more information on the standard of conduct of prison employees, visit the following website:

American Correctional Association (ACA) Code of Ethics

For more information on the sanctions for misconduct, visit the following websites:
http://www.azcorrections.gov/Policies/500/0501.pdf

http://www.fdle.state.fl.us/Content/CJST/Menu/Officer-Requirements-Main-Page/CO-Ethical-Standards-of-Conduct.aspx

Part 2:

The attorney retained to assist the correctional officers in the correctional officer misconduct case has now been charged with making inappropriate, frivolous, disparaging, and disrespectful remarks about you and your legal team. Your colleague even accused you and your colleagues of misrepresenting facts and tampering with case documents. In fact, your colleague has often been considered incompetent by other attorneys at in your office. He has a drinking problem and often neglects to prepare proper documentation for his cases. There have also been previous complaints about his behavior and demeanor.

Analyze the situation. In your report, include the following details:

?Analyze your colleague's actions.
?Describe the moral and ethical issues at stake.
?Apply the legal code of the ABA that was broken, if any.
?Explain the course of action that you consider appropriate.

For further information on the ABA Standards of Conduct, visit the following websites:

Model Rules for Lawyer Disciplinary Enforcement

Model Rules of Professional Conduct

For further information on ABA Disciplinary Actions, visit the following websites:

?www.abanet.org: Grounds for Discipline/Lesser Misconduct

?www.abanet.org: Sanctions

Support your responses with examples.

Cite any sources in APA format.

Assignment 2 Grading Criteria

Analyzed the ethical issues at stake and whether there is an ethical violation of the legal code in the prison.

Analyzed and justified the decision based on the facts of the case and research.

Analyzed their legal colleague's actions and describes the moral and ethical issues at stake.

Analyzed and explained in detail the course of action taken for the prison officials and the ethical system that would support this decision.

Analyzed and explained the Department of Corrections in a 2- to 3-page memo that clearly summarizes the situation and outlines the next steps that should be taken along with your ethical reasoning.

Analyzed and explained in detail the course of action that should be taken against the attorney along with an ethical theory to support this course of action.

Analyzed and Identified the portion of the ABA code that was broken.

Written Components.

Paradigm of Laws

Use Internet resources to address the following scenario:

You are a correctional officer at the state prison. One of the inmates reveals to you his knowledge of the whereabouts of contraband in your facility. You promise the inmate?who has deceived you two times earlier?not to tell authorities about his involvement if he reveals the location of the contraband. After he provides you with the information, you reveal his involvement to the authorities.

Using the concept of paradigms of laws and Kant's ethical formalism, write a 4- to 5-page justification report in Microsoft Word document. In your report, include:

?The paradigm of law your actions define and give reasons.

?A justification of whether you lied to the inmate.

?How you treated the inmate?explaining whether you treated the inmate with respect.

?An explanation of whether the actions would be considered universally acceptable.

?An analysis of whether this is a form of retributive justice with reasons to support your analysis.

?An analysis of Kant's ethical formalism in view of the given scenario.

Support your responses with examples.

Cite any sources in APA format.


Assignment 2 Grading Criteria

Defined and analyzed the reasons of The paradigm of law.

Analyzed and explained whether you lied to the inmate.

Analyzed and Explained that how the inmate was treated.

Analyzed and Explained whether the actions would be considered universally acceptable.

Analyzed and gave reasons, whether this is a form of retributive justice.

Used correct spelling, grammar, and professional vocabulary. Cited all sources using APA format.

discuss corrections accreditation and privatization. Address the following questions:

What is corrections accreditation? How does corrections accreditation affect the professional development of corrections officers? How can industry leaders plan for better correctional officer professionalization and accreditation?

What is privatization as it relates to prisons? How does this affect state and federal prison systems? How well do privatized prisons meet correctional criteria and how do they compare to federal and state prisons?

Write at least 500 words on each of the following three topics. Use a total of three references or more and cite in APA format.
1. Our philosophy regarding crime and punishment has shifted at various times in our history. Describe the relationship between social contexts and the justification for punishment. Historically, how have societys beliefs about crime driven crime policy, sentencing practices and correctional techniques?
2. Discuss the various types of institutional settings.
3. Take a virtual tour through Floridas state prisons on MyFlorida.com's Department of Corrections Web page. Then click on the link at the bottom of the page, "Misconceptions About Florida Prisons." http://www.dc.state.fl.us/oth/vtour/opendorm.html
Next, take a virtual tour of Georgia prisons. Be sure to click on the right to see a dormitory, kitchen and intake: Georgia Department of Corrections. http://www.dcor.state.ga.us/AboutGDC/VRTour.html
After exploring both states' departments of corrections, compare and contrast the two. What appeared to be good and what appeared to be bad? What about programs? Where there too many or not enough? Did this exercise clear up any of your own misconceptions? If so, which ones?

Corrections Accreditation and Privatization
Write a 450- to 700-word paper in which you discuss corrections accreditation and privatization. Address the following questions:

? What is corrections accreditation? How does corrections accreditation affect the professional development of corrections officers? How can industry leaders plan for better correctional officer professionalization and accreditation?

? What is privatization as it relates to prisons? How does this affect state and federal prison systems? How well do privatized prisons meet correctional criteria and how do they compare to federal and state prisons?

Format your paper consistent with APA guidelines.
Post your paper as an attachment USE THIS AS ONE OF THE REFERENCES PLEASE Foster, B. (2006). Corrections: The Fundamentals. Upper Saddle River, NJ: Prentice-Hall.

Describe the similarities, if any, and differences between a jail, state prison, and federal prison. Explain how an inmate is assigned to a jail or prison after being convicted of a crime. In addition, discuss how the type of crime determines where a convicted person is incarcerated.
Submit your paper to this assignment.


Note: ? APA formatting: Resources and citations should be formatted according to APA Style and Formatting. Use APA 6th edition formatting, including correct in-text citations, proper punctuation, double-spacing throughout, proper headings and subheadings, proper paragraphs, and block indentation. Do not use bullets or bold formatting. Refer to APA Citing & Referencing
? References: The paper must include a reference list. Include at least 2 references overall. You must use proper APA style in listing your references.

i just need u to do the proposal on the info i provided
Tasks:
Part 2 of the course project requires you to complete Study Section II of the Department of Justice study. The submission must include both Study Section I and II and should incorporate any revisions suggested by your instructor in Study Section I.

Study Section II: Based on the information gathered in Study Section I of the study, propose changes and improvements designed to address the organizational and administrative challenges of each component of the U.S. Justice System: the police, courts, and corrections. The recommendations made during this study section must include identifiable justifications that thoroughly explain how the changes will address any existing issues.

Deliverables and Format:
Submit your answer in a Word document in not more than ten pages. Your paper should be well organized and free of grammatical and spelling errors. It is recommended that you structure your paper according to the following outline:

Police
Proposal

Courts
Proposal

Corrections
Proposal

Always cite any sources that you use.

POLICING, COURTS, AND CORRECTIONS ??" COMPARISON AND ANALYSIS

Police

Summary
Policing in the United States is highly decentralized, with thousands of individual local, tribal, state, and federal police agencies maintaining exclusive jurisdictional law enforcement authority as between different local agencies and shared jurisdictional authority as between local, state, and federal agencies (Schmalleger, 2009). Under the U.S. Constitution, Federal policing authority supersedes that of state police and under the constitutions of the individual states, state police authority supersedes that of local police agencies (Edwards, Wattenberg, & Lineberry, 2007; Friedman, 2005; Schmalleger, 2009).
Organizational Structure
Generally, police agencies in the U.S. are hierarchically structured paramilitary organizations in which the chain of command mirrors that traditionally associated with national military organizational structure (Schmalleger, 2009). Federal police agencies operate under the authority and oversight of the U.S. Department of Justice headed by the U.S. Attorney General. State and local police agencies operate under the authority of the laws and constitutional provisions of the individual states and municipal governments in those states ((Edwards, Wattenberg, & Lineberry, 2007; Friedman, 2005; Schmalleger, 2009).

Analysis
One of the most fundamental issues in contemporary American policing is the conflict between local laws and contradictory federal laws (Schmalleger, 2009). While there is no uncertainty with respect to the primacy of federal law wherever local laws are more permissive, the shared jurisdiction often leads to confusion and uncertainty about the specific conduct that is permitted and prohibited in a practical sense. A typical example of this problem includes situations where local laws in certain states expressly permit (and even license) medicinal marijuana sales but whose licensed dispensaries still susceptible to criminal enforcement nevertheless by federal law enforcement authorities (Schmalleger, 2009).
Courts
Summary
In the U.S., the respective authority of individual courts mirrors that of policing agencies to a great degree. Local, municipal, and state courts share jurisdiction over many types of cases, and federal courts hear cases filed in the individual states over federal issues (Dershowitz, 2002; Schmalleger, 2009). State supreme courts resolve appeals of lower state and local court decisions and federal district courts hear cases appealed from lower federal court decisions (Dershowitz, 2002; Schmalleger, 2009). The U.S. Supreme Court has the authority to hear any cases appealed from the highest state and federal courts (Edwards, Wattenberg, & Lineberry, 2007).
Organizational Structure
Local and municipal courts hear certain types of cases filed by residents of those jurisdictions while state courts hear other types of cases (Dershowitz, 2002; Schmalleger, 2009). State supreme courts (or state courts of appeal) resolve cases appealed from lower courts in the state. Federal district courts in the appropriate district hear cases appealing decisions of federal courts, and the U.S. Supreme Court has the authority to hear any cases appealed from federal district court decisions (Dershowitz, 2002; Schmalleger, 2009).
Analysis
Some of the most significant contemporary issues in the American court system have to do with issues such as mandatory penal sentencing guidelines that restrict the authority and learned judgment of federal judges, state three-strikes laws that may result in life sentences for conviction of relatively minor crimes in some situations, and over-prosecution of certain victimless crimes that result in overcrowded penal institutions and the inability to house some convicted criminals who may pose legitimate threats to public safety and welfare (Dershowitz, 2002; Schmalleger, 2009).
Corrections

Summary
Generally, municipal and city jails house prisoners convicted of misdemeanors in the individual states; state prisons house prisoners serving sentences in excess of one year in connection with felony convictions in the individual states; and federal penitentiaries house criminals serving federal sentences after conviction for violating federal criminal laws ((Edwards, Wattenberg, & Lineberry, 2007; Schmalleger, 2009).

Organizational Structure
Generally, cities and local municipalities maintain jails in their jurisdictions while state corrections agencies administrate state penal systems and institutions located within individual states (Schmalleger, 2009). The federal penal system operates independently of state and local corrections and maintains corrections facilities throughout the country (Schmalleger, 2009).

Analysis
One of the most important contemporary issues facing the American corrections system include is the tremendous problem of overcrowding that is associated with compromised safety and welfare of the penal population and that often results in excessively liberal sentencing (Dershowitz, 2002; Schmalleger, 2009). Another important problem is the issue of prison privatization in connection with the takeover of penal facility administration by private for-profit organizations. That is especially true in light of the concept of political lobbying by private industries with the capacity to change laws that ultimately have financial benefits for the lobbying industries whose revenue is directly dependent on maintaining high numbers of criminal convictions leading to incarceration (Dershowitz, 2002; Schmalleger, 2009).

CRJ630 PLEASE LABEL EACH DISCUSSION

STUDENT.ASHFORD.EDU

All the articles are under the required resources.

WEEK 1 DISCUSSION

Prior to beginning work on this discussion, read Chapter 1 in your textbook, the Spencer (2013) and MacKenzie (2000) articles, and view the Ferguson Police Testing New, Less Lethal Gun Technology (Links to an external site.)Links to an external site. and Budget Cuts Put State Prison Staffs at Critically Low Levels (Links to an external site.)Links to an external site. videos.

The numerous issues that arise in large organizations regarding decision making can be difficult to properly grasp. There are those leaders who base their conclusions solely on empirical data, preferring to engage in a more quantitative decision-making process. Conversely, there are supervisors who approach decision making from a more holistic perspective, engaging in more qualitative thought processes. It is a reality, especially in budgeting and issues affecting criminal justice agencies, that quantitative decision making takes precedent. However, better conclusions are often drawn when qualitative aspects of a problem or issue are also considered.

Based on information from the required sources, compare and contrast the differences between quantitative and qualitative decision making in public finance. Based on the required videos, provide at least two quantitative and qualitative observations.

In addition to noting the differences between quantitative and qualitative observations, respond to the following elements:

Explain which basic method of decision making you feel provides the most accurate information for budget management; quantitative or qualitative.
Analyze both qualitative and quantitative-based budgetary decision making and describe your preference between the two provided you were in a position of power. Provide a rationale for your preference.
Explain the potential benefits of quantitative observations.
Explain the potential benefits of qualitative observations.

WEEK 2 DISCUSSION


Your initial discussion thread is due on Day 3 (Thursday) and you have until Day 7 (Monday) to respond to your classmates. Your grade will reflect both the quality of your initial post and the depth of your responses. Refer to the Discussion Forum Grading Rubric under the Settings icon above for guidance on how your discussion will be evaluated.


Henri Fayol and Systematic Management
Prior to beginning work on this discussion, read Chapters 2 and 3 in the textbook and the Moynihan (2009) article, The Response to Hurricane Katrina (Links to an external site.).

Every organization within the field of criminal justice has a management hierarchy of some sort. Included among the many tasks assigned to managers are budget planning, financial decision making, and effecting personnel decisions. However, what is missing at times in criminal justice agencies is effective leadership. Too often policy makers confound leadership with management. The two can be, and often are, quite dissimilar.

In the City of New Orleans immediately after Hurricane Katrina, a variety of political and local managers and leaders congregated in the Central Business District in an effort to arrive at a consensus as to the wisest course of action. Among those present was Michael Brown, the director of FEMA, Ray Nagin, the Mayor of New Orleans, and various state politicians. No action plan could be developed as each respective politician was so focused on their own needs that they soon became blinded to effective alternatives. Added to those problems were the combined effects of serious deficiencies in communication and coordination of rescue efforts.

Consider the information provided in your required sources for this discussion and include the following elements in your initial post:

Explain the major characteristics of leadership. Describe the primary traits of management.
According to the five functions of management developed by Henri Fayol, explain the ways in which the response to Hurricane Katrina failed.
Evaluate the financial constraints that affected the situation at the time and describe which organization or individual you believe offered the most effective leadership after the storm. Provide a rationale supporting your statements with evidence from the required readings.

WEEK 3 DISCUSSION(1)

The ideas of quality assurance and control can often appear quite clear and salient with respect to corporations and private businesses. However, rarely does one hear direct conversation about these concepts concerning the functions of law enforcement and corrections. It almost seems like a misnomer to hear of ?quality assurance and control? when discussing aspects of a law enforcement or correctional organization. Despite the fact that it might appear on the surface as though issues of quality assurance and control are absent from law enforcement and corrections, the opposite is actually true.

Law enforcement and correctional agencies spend a great deal of time and money devising innovative plans to offer a better product to the general public. Programs such as community policing and problem-oriented policing are but two mechanisms through which law enforcement leaders have attempted to increase quality in their organizations. Within correctional organizations, programs aimed at mental health treatment, work programs, and educational offerings have been created in an effort to provide a better quality product.

Based on your required readings, examine how the concepts of quality assurance and control are addressed in a law enforcement or correctional organization of your choice. In your post, identify your chosen organization. Explain the issues pertaining to budgetary considerations and how those affect communication, ethics, and coordination. Analyze how the respective organization\'s leaders ensured that their agency provided a quality product to the general public. In addition, provide an example of how a law enforcement agency or correctional organization failed to provide a quality product. Describe what the agency did, or failed to do, to ensure quality control and assurance.

DISCUSSION(2)

Prior to beginning work on this discussion, read Chapter 5 in the textbook in addition to the Ridgeway (2014) article.

The practice of benchmarking has been defined as, \"a structured approach for identifying the best practices from industry and government, and comparing and adapting them to the organization\'s operations\" (Doss, 2012). Benchmarking and the noting of best practices by leaders and policy makers within the fields of law enforcement and corrections can be essential for a host of financial purposes. Organizational grants are often based on benchmarks as are policy development and training practices.

Carefully consider the information provided in your required sources for this discussion and include the following elements in your initial post:

Explain how a SWOT analysis would enable a law enforcement or correctional agency to better benchmark itself against other similar organizations.
Explain the ways a SWOT analysis would contribute to an agency\'s strategic plan.
Analyze the ramifications of a SWOT analysis and benchmarking for an organization\'s budgetary requirements.

This project is a 10-12 page paper; double spaced, 12 point font, excluding the separate cover page and references page(s). Specific statements from supportive sources should be cited in the narrative of the paper as well as identified in the references. General references should also be included in the references. APA citation format is required. Grading will be based on the thoroughness of the examination of each segment, strength of the basis for decisions and supportive sources.

Ethical dilemmas permeate the criminal justice. At every level, in each segment of the system, people are exercising discretion that will impact on the fate of an individual and/or the security of the community. Incongruous laws, regulations, policies and practices create conflicts and distort the basis upon which judgments are made. Very often these conflicts result in an ethical dilemma. Which is the appropriate course of action? What is the moral/ethical rational for the decisions that were made? What purposes or principles are served? This project will ask you to consider a sequence of decisions (do, or not do) all of which contribute, directly or indirectly the final scene. For each of the four (4) scenarios, your assignment is to:


Examine each situation and describe the ethical and/or moral question,
Describe what you believe to be the motivation of the actor and the potential consequences of BOTH options,
Identify the decision you believe the actor SHOULD make, and
Provide the ethical basis for your decision.
NOTE: The scenarios are sequential. However, each decision must be considered separately and not be influenced by earlier decisions and/or actions. For instance, the decision to fund/not fund a new prison does not impact on a later decision to sentence a convicted felon to incarceration. The sentencing dilemma is independent.
-------------------------------------------------------------------------------------------------------------


1. The Parole Board

As the chair of the parole board, Robert knows the state prisons are critically overcrowded. Advocates are threatening the corrections system with Federal suits. One alternative is to broaden the parole eligibility criteria to allow more inmates to be released to community-based supervision. However, reviewing the current ?risk assessment? results, Robert is concerned that any further relaxation of standards may result in the release of inmates more likely to re-offend than he considers ?safe?. Robert just received a call from the Governor asking him what the parole board can do to ease the overcrowding that will be the basis of the federal law suits. The Governor reminds Robert that if these suits are successful, inmates will be released under a federal process outside the parole board?s control. What does Robert, as chair of the parole board, tell the Governor?



2. The Warden

William is the warden of a century-old correctional facility. Despite his best arguments, his operating budget was severely cut for the fiscal year that just started which eliminated overtime for correctional officers and froze hiring of replacement employees. Almost all of the rest of his budget is dedicated to food and medical services for inmates, and fixed utility costs. He was staffed for his average population (same as capacity population), but those numbers have skyrocketed due to an aggressive arrest and prosecute campaign. The facility is dangerously overcrowded with no foreseeable sign of relief. The major problem is staffing. William is concerned for the safety of his employees as well as the inmate population. He thinks that if his officers? feel threatened they may report off for medical reasons, resign or simply not report for duty; any of which would only exacerbate the problem. William does have an off-site work release program which could handle the additional inmates. However, there is no ?risk assessment? or screening process in place which means the designation of inmates to community-based work release would be based on unsupported security guess work. The union representatives for the security officers have a meeting with William to hear how the warden intends to ensure the safety of his members. How does William respond?



3. The District Attorney

Martha ran a successful campaign for district attorney on a very conservative platform generally critical of plea bargaining and reduced prison sentences for convicted felons. The city?s police chief, following his mayor?s directive to ?take back the streets from gun-toting drug dealers? has launched a very aggressive arrest campaign, resulting in a dramatic increase in criminal cases. A review of sample cases clearly shows many of these arrests lack supportive probable cause and/or have very weak evidentiary support. As cases, most are ?losers?. Martha knows from the criminal records that most of the arrestees are heavily involved in the city?s drug culture, even if the current case is weak. She also knows that anything other than aggressive prosecution of these cases will portray her as unsupportive of the mayor and the police and reneging on her campaign pledge. Martha?s chief of staff has asked her for some directive to her prosecutors as to how she wants these cases handled (trial, plea bargain, dismiss, etc.). What direction should Martha give?



4. The Officer

About 3:00am on a deserted street corner, Linda, a police officer confronts a young man acting in a manner which she recognizes from her experience and training as consistent with the mannerisms of a drug-deal ?look-out?. Linda confronts the man and asks for his identification. She also asks him if he would empty his pockets for her. From one pocket the officer has recovered several vials which she recognized as crack cocaine; in the other pocket she finds $400 in cash. Linda remembers her sergeant at roll call chastising other officers for bringing in petty drug cases that just take time from patrol and clog the system. The department is getting complaints about overloaded dockets from the prosecutors? office and there is no more room in the local jail. Earlier, in the locker room, fellow officers were griping about their colleagues who make themselves unavailable to handle calls for service because they are off processing some time-consuming minor arrest. With his pockets now empty, the subject still has not produced any positive identification. At this point Linda knows nothing about the suspect... and she can't find out unless she arrests and charges him so the suspect can be fingerprinted and positively identified... and Linda can't arrest and charge the suspect without the contraband. At this point the police dispatcher calls for Linda and asks if she is available to serve as back-up for a ?burglary in progress? call. What does Linda tell the dispatcher?


Format Requirements
A minimum of 2,000 words
Double space
12 pt. font
1? margins
Use APA citations for all narrative and reference page sources
Include reference page using APA format guidelines (not included in word count)
Additionally -
Create a cover page for your assignment (not included in word count)
Include your name
Course title and number
Project title

Summarize the overall viewpoint of the author, and discuss the major issues presented in the case.

Review the Questions for Thought. Answer these three questions using the business ethics principles.

1. What do you think Kozlowski?s motivation for trying to avoid sales taxes on his art purchases was? Explain.
2. Explain the concept of commingling assets with respect to the Tyco case.
3. Would it have been possible for the board of directors to see the adjustments taking place in the many different programs at Tyco? Explain.

TYCO: IM SURE THAT ITS A REALLY NICE SHOWER CURTAIN

THE RISE OF DENNIS KOZLOWSKI
On May 18, 2002, Tyco CEO Dennis Kozlowski, who had received his degree in accounting and finance from Seton Hall University in 1968, gave the commencement address to St. Ansell?s College in Manchester, New Hampshire. He talked about the difficult decisions that the graduates would have to address during their lifetime. He stated that the graduates would have questions that would test their moral standards. He told the students that the questions would get tougher and the potential consequences would be more severe, so his advice was to do not the easy thing, but the right thing. Less than two weeks later, on June 1, 2002, Dennis Kozlowski, who had worked at Tyco since 1975, announced to the board of directors for Tyco International that he was the subject of a criminal investigation in New York for evasion of sales taxes on a painting he had purchased in Manhattan. The board of directors demanded that he step down as CEO of Tyco, and he did on June 3, 2002. Tyco told the media that Kozlowski had resigned for personal reasons. By resigning and not being fired, Kozlowski was no longer eligible for a severance package that was valued at approximately $ 120 million. Previous Tyco CEO John Fort took over as interim CEO. Fort, Tyco?s CEO from 1982 to 1992, had stopped using the company jet and sold off the president?s house and other corporate- held apartments during his first reign. In an ironic example of dj vu, Fort, who was on the board of directors of Tyco, had to ad-dress the same issues in 2002 that he dealt with in 1982.
THE FINANCIAL TROUBLES BEGIN
It was not a pleasant time for Tyco because it had lost $ 86 billion in market capitalization because of concerns investors had about the company?s strategic focus. In addition,
a number of critics were complaining about the compensation levels given to Kozlowski and other members of Tyco?s management. Tyco's stock had fallen from $ 60 in December 2001 to $ 16.05 inDecem-ber2001to$16.05 in June 2002. In addition, Tyco had accumulated $ 27 billion in debt through various acquisitions. Kozlowski was called Deal a Month Dennis for his aggressive acquisition style. He said his goal was to create the new General Electric. Some of the major acquisitions are shown in Table 1. In his ten years as CEO, through growth via acquisition, Kozlowski grew the size of Tyco from $ 2 billion when he took over the CEO position to create a conglomerate with annual sales of $ 36 billion at the end of fiscal 2001. Tyco had a quarter of a million employees worldwide and had a market capitalization of $ 120 billion. At the time of his resignation, Kozlowski had exercised $ 240 million in stock options and had been paid close to $ 100 million over the previous three years. The estimated tax that Kozlowski avoided on the painting was $ 1 million. In addition, Kozlowski owned residences in New York, New Hampshire, Florida, and Nantucket Island. His New York apartment was reportedly bought for $ 18.5 million in 2000. His distaste for paying taxes led him to move the corporate headquarters to Bermuda from Exeter, New Hampshire, in 1997 to reduce Tyco?s tax liability to 20 percent, which is approximately half of the average corporate rate for United States based firms.
PAYING FOR EMPTY CRATES
It was alleged that Kozlowski had bought approximately $ 15 million worth of paintings in New York and had the art gallery ship them to New Hampshire to avoid paying the 8.25 percent New York State and Manhattan combined sales tax even though they were to be hung in his Fifth Avenue apartment.
On June 4, 2002, Kozlowski was indicted by a grand jury for tax evasion for avoiding paying more than $ 1 million in taxes on six paintings that he had purchased in the fall of 2001. In addition, he was also charged with tampering with evidence and willfully falsifying financial records. He was ordered to surrender his passport and was released on a million bond. One piece of evidence that prosecutors were able to obtain was a fax that listed the paintings Kozlowski had purchased, which were supposed to be shipped to New Hampshire, with the words wink, wink in parentheses. Kozlowski had bought approximately twelve paintings including a Renoir and a Monet that were valued at more than $ 15 million from August to December 2001. Karen Kozlowski, Dennis?s wife, worked with art director Christine Berry to help purchase the art for their Fifth Avenue apartment. Some of the paintings would be sent to the apartment to see how they would look on the wall before they were purchased. In December 2001 the Kozlowski?s purchased a Monet for close to $ 4 million from a private Manhattan dealer. The art dealer, Alexander Apsis, did not charge sales tax on the painting because Kozlowski gave him a written document that stated that the painting was going to be shipped to New Hampshire. However, the painting went to the Manhattan apartment, which is less than two blocks from the art dealer?s office. During the same time period, the Kozlowski?s purchased four additional paintings that were valued at close to $ 9 million and included a Renoir. For those purchases, Kozlowski told the art dealer to ship empty boxes to New Hampshire to represent the shipment of the paintings. On January 2, 2002, five empty boxes were shipped to New Hampshire and signed for by a Tyco employee.
THE INVESTIGATION EXPANDS
On June 6, 2002, prosecutors announced that the investigation had been expanded to include an examination to see whether Kozlowski used Tyco funds to finance the maintenance of his Florida homes as well as paying for other personal expenses. The investigation started to focus on whose money was used to purchase the artwork that was hanging in Kozlowski?s Fifth Avenue apartment. In addition, it appeared that Tyco money was used to purchase the $ 18.5 million apartment in Manhattan for the Kozlowski?s. The investigation also examined whether Tyco money was used to purchase the Kozlowski home in Boca Raton, Florida. The Boca Raton home had been owned by Lord Michael Ashcroft, who became a Tyco board member in 1997 when Tyco purchased ADT, which Ashcroft?s company owned. In October 1997 Ashcroft sold his house to his wife for $ 100. She sold it the same day for $ 2.5 million to a Tyco vice president, Byron Kalogerou. The investigation was to determine whether the home was purchased with Tyco funds and Kalogerous name was put on the title to avoid having the appearance that Tyco bought the home for Kozlowski from a Tyco board member. By June 9, 2002, Tyco?s stock had fallen from a high of more than $ 60 in December 2001 to $ 10.10, resulting in a reduction of market capitalization of approximately $ 95 billion.
On June 26, 2002, Dennis Kozlowski was indicted on two additional charges of tampering with evidence in the tax evasion case. The new indictment was based on the disclosure that Kozlowski had physically taken a bill of lading from the Tyco offices in Boca Raton that had falsified the shipment of the paintings from New York to New Hampshire before the files were sent to the New York district attorney?s office in May 2002. As with all the previous charges, Kozlowski pleaded not guilty to the new felony charges. On July 23, 2002, Tyco reported a third- quarter loss of $ 2.32 billion, com-pared with a net profit of $ 1.18 billion for the third quarter of 2001. On July 25, 2002, Tyco announced that it had hired Motorola?s president, Edward Breen, as the new CEO and chairman of the board. Breen had also previously been the CEO of General Instrument Corporation, which was acquired by Motorola in 2000.
On September 12, 2002, Dennis Kozlowski and CFO Mark Swartz were indicted for illegally obtaining hundreds of millions from Tyco for their own use. It was alleged that the two former Tyco executives were involved in racketeering by being involved in stock fraud, the disbursement of bonuses that were not authorized to employees, and the falsification of expense accounts. It was also alleged in the indictment that Kozlowski and Swartz paid off a Tyco board member and other employees to keep their fraudulent activities quiet. The prosecutors accused Kozlowski and Swartz of running a criminal enterprise, which is commonly used when indictments are applied to members of organized crime. The Manhattan district attorney?s office claimed that the two former Tyco executives started the covert fraudulent operation in 1995. The DAs office alleged that the two men had spent millions of Tyco?s dollars for their personal use. It was also alleged that the two Tyco executives would control the focus of Tyco?s internal audits and would file disclosure reports with the SEC without any input from the legal department to avoid any chance that their activities would be discovered. The prosecutors calculated that Kozlowski and Swartz had stolen $ 170 million directly from the company and had illegally gained another $ 430 million by selling Tyco stock while the price was artificially high due to financial statement manipulations. The prosecutors also alleged that Kozlowski had defrauded the company by giving himself and other Tyco employee?s unauthorized bonuses and loans that were not repaid to the company. It was alleged that Kozlowski used a Tyco program designed to help executives pay taxes on stock options to improperly borrow an estimated $ 242 million for his own use. Kozlowski used the money to purchase paintings, real estate, yachts, and jewelry for himself and his wife. Swartz allegedly used the same program to borrow $ 72 million for his personal investments. In addition, Kozlowski and Swartz used $ 78 million in loans from Tyco?s real estate relocation pro-gram, which was designed to help pay the costs of employees who were being transferred to the Boca Raton office from the New Hampshire office. The money was used by the two executives to purchase real estate and other personal expenses.
THE PAYMENT OF EXPENSES
On September 18, 2002, it was revealed that Dennis Kozlowski had approved without authorization the forgiveness of loans to fifty- one Tyco employees in the amount of $ 95 million in return for their silence. The company also released the results of an internal review headed by David Boies, who found that Tyco paid for personal expenses of Kozlowski including an $ 80,000 payment to American Express, a traveling toilet box that cost $ 17,100, an umbrella stand designed to look like a dog for $ 15,000, a sewing basket that cost $ 6,300, a $ 6,000 shower curtain, two sets of bed sheets that cost $ 5,960, a set of coat hangers that cost Tyco $ 2,900, a metal wastebasket that cost $ 2,200, a $ 1,650 notebook, and a pincushion that cost $ 445.
Tyco filed a lawsuit against Kozlowski, requiring the former CEO to return to Tyco his compensation and benefits since 1997 and the forfeiture of all of the components of his severance package.
HAPPY BIRTHDAY, KAREN!
One of the allegations was that Tyco paid $ 1.5 million of the $ 2.1 million total cost of the fortieth birthday party for Kozlowski?s second wife, Karen, at Island Sardinia in Italy. Kozlowski had met Karen when she was working as a waitress in a New Hampshire restaurant near Tyco?s U. S. headquarters. A memo given to The Wall Street Journal gave the details of the $ 2.1 million party. It was described as a Roman Empire theme with Kozlowski being the emperor. The party included gladiators, exotic animals, and an ice sculpture of Michelangelo?s David that disbursed Vodka through its genitals. Not to be outdone, there was also a woman- shaped birthday cake that had an exploding bosom when sparklers were inserted in the cake. The servers were dressed in togas with an open bar for the seventy- five guests and more than twenty- five staff members. Elvis appeared on a huge screen apologizing for not being able to appear in person, and an extravagant light show ended the evening. Jimmy Buffett also performed for a fee of $ 250,000. The guests did not to pay for anything, including flying over to Italy. The birthday week was so elaborate that a logo was made and it was included on bags, hats, and other gifts given to the guests. Also part of the week- long events were a scavenger hunt, horseback riding, water skiing, and trips on Kozlowski?s yacht. After the party was over, Karen and some of the guests took a Tyco jet and flew to Florence to participate in a cooking class. The only guidance Kozlowski gave the planners was not to do anything that he would be embarrassed to see on the front page of The Wall Street Journal. In Tyco?s 2001 annual report, which was published after the birthday celebration, Kozlowski informed Tyco investors that the company had a continuous drive to reduce costs throughout the organization. Kozlowski described the party as primarily a business function. At the retrial of the two executives, Mark Foley, who was the former senior vice president of finance, testified that the party was going to be a management meeting and would include a meeting with the board of directors.
MARK SWARTZ, CFO
Chief financial officer Mark Swartz was more involved in the deal making for the acquisitions than the financial statements of Tyco. He was considered the prot?g? for Kozlowski. From 1999 to 2002, Swartz received more than $ 170 million, which included a salary of $ 48 million and $ 125 million in stock options. His compensation was one of the highest for a CFO during that time period. Tyco?s new CEO, Edward Breen, asked Swartz to leave Tyco on August 1, 2002. In agreeing to step down as CFO, Swartz gave up his previous severance package, which was estimated to be worth $ 100 million, and settled for $ 9 million and other retirement benefits when Breen threatened to challenge the previous severance agreement in court. On September 11, 2002, David FitzPatick was hired by Tyco as the new CFO. He was previously a CFO and senior vice president for United Technologies Corporation. On February 19, 2003, Mark Swartz was indicted for tax evasion for not paying federal in-come taxes on a loan of $ 12.5 million that was given to him in 1999. The tax due for the bonus would have been close to $ 5 million. On April 1, 2003, Tyco filed a lawsuit against Swartz, asking for more than $ 400 million in money that Swartz had taken that had belonged to Tyco. The lawsuit was filed after Swartz refused to resolve the issue with arbitration. In September 2004 Mark Swartz?s Manhattan apartment near Central Park was sold by Tyco for $ 12 million. Swartz, using Tyco funds, bought the apartment in 2002 for $ 15.274 million.
On January 27, 2005, the retrial for Kozlowski and Swartz started in New York. During his retrial Swartz stated that he did not remember checking his 1999 W- 2 form to see whether he had reported the Tyco forgiveness loan of $ 12.5 million. The former accountant testified in court that he only remembered seeing the W- 2 two years later in the summer of 2002.
MARK BELNICK, TYCO LEGAL COUNSEL
On June 11, 2002, Tyco fired its general legal counsel, Mark Belnick, over disputed circumstances. Belnick, who had been at Tyco since 1998, stated that he was fired be-cause he lost a power struggle with one of Tyco?s board members, Joshua Berman, and the lawyer who was hired in April 2002 to be included in the Tyco corporate governance committee, David Boies. On the other hand, Tyco stated that the reason Belnick was fired was he was disrupting the internal investigation by having Tyco pay for executive?s personal expenses as well as issuing previously undisclosed loans to Tyco executives. Joshua Berman also became part of the investigation when it was discovered that Tyco was paying his law firm up to $ 2 million annually and Berman?s compensation until 2000 was tied, in part, to how much business he could bring to the law firm from Tyco. Belnick had complained that Tyco was depending too much on Berman?s law firm of Kramer Levin Naftalis & Frankel for its legal needs. Boies had stated that Belnick had been given $ 20 million in compensation without the payment being disclosed to the board. Belnick?s lawyer confirmed the payment of $ 20 million but stated that the proper disclosures had been made. The Securities and Exchange Commission required that the compensation for the five top- paid officers be disclosed. It was assumed that Belnick?s compensation would have put him in the top five, yet Tyco did not disclose this information to the SEC in its filings.
In addition, initial results of the internal investigation done by Boies?s firm, Boies, Schiller & Flexner LLP, raised questions as to whether Tyco money was used to buy Belnick?s residences in New York City and in Park City, Utah, without full approval by the board of directors. On June 17, 2002, Tyco filed a lawsuit against Mark Belnick that alleged that Belnick had accepted payments of $ 35 million from 1998 to 2001 without disclosing it to the compensation committee of the board of directors or to the SEC. In addition, the lawsuit also claimed that Belnick purposely deleted files relevant to the investigation on June 10, 2002, which was the day he was fired. On September 12, 2002, the Manhattan district attorney?s office announced that Belnick was criminally charged with defrauding Tyco. It was alleged that Belnick hid the fact he received a relocation loan from Tyco that he used to buy a resort home in Utah. The district attorney?s office claimed that Kozlowski paid off Belnick with the loan so Belnick would not say anything about the internal transactions that were occurring at Tyco.
On February 3, 2003, Mark Belnick was indicted for three more criminal charges, including obtaining a $ 12 million bonus that was not authorized. The three charges were grand larceny, fraud, and falsifying documents. During his trial, prosecutors claimed that Belnick did not disclose $ 14.9 million in company relocation loans that were used to purchase an apartment in New York and a home in Utah. Belnick was listed as the only Tyco employee in Utah. Belnick was accused of taking up to $ 32 million through loans and bonuses without proper authorization. After a two-month trial in which the jury deliberated for five days, Belnick was found not guilty on all charges. On May 2, 2006, Belnick agreed to pay the SEC a $ 100,000 penalty as part of the settlement for civil fraud charges. In addition, Belnick agreed not to serve as a corporate officer of a publicly traded company for five years.
TYCOS BOARD OF DIRECTORS
On June 13, 2002, it was also announced that the board of directors at Tyco was investigating the actions of interim CEO and board member John Fort for conflict- of-interest violations. Fort was an investor and advisor for DLJ Merchant Banking Partners II, which bought Tyco?s flow- control products division for $ 810 million in August 1999. Fort did not disclose this information to the board of directors at Tyco. In addition, it was alleged that Fort had sold a Rye, New Hampshire, house to Kozlowski in 1996, which was paid for with Tyco funds. Furthermore, another Tyco board member, Stephen Foss, had a business relationship with the leasing of an air-plane to Tyco. The lack of control by Tyco?s board of directors pertaining to the decision- making process by the top executives at Tyco is evident by examining the compensation levels given to Kozlowski and Swartz from 1998 to 2001 as shown in Table 2. While their salaries ranged from more than $ 1 million to $ 4 million per year, the issuing of stock bonuses and options ballooned the total compensation package for the two top Tyco executives combined to close to half a billion dollars for the four years.
On October 22, 2002, it was revealed that Kozlowski had a close financial relationship with another board member, Richard Bodman. Bodman had been a Tyco board member since 1992, and Kozlowski had invested $ 5 million into a private stock fund that was managed by Bodman. Bodman was a member of Tyco?s oversight board committees audit, corporate governance, and nominating. Bodman?s close relationship with Kozlowski did not hinder his opinion of a $ 20 million payment made to another board member, Frank Walsh. Bodman called the payment made without board approval corrupt and a complete violation of the responsibilities given to the board of directors by the investors.
On June 17, 2002, it was announced that former independent board member Frank Walsh, Jr., created a conflict of interest by taking a secret $ 20 million from Kozlowski for helping Tyco buy CIT Group. The fee was not disclosed when it took place, but six months later Tyco disclosed the fee, and it resulted in a decrease of $ 16.7 billion in market capitalization of Tyco stock. On December 17, 2002, Frank Walsh pleaded guilty to securities fraud. Walsh admitted that he had taken a payment of $ 20 million for helping Tyco acquire CIT Group, but he did not disclose that information

to any other members of the board of directors. In exchange for not being sentenced to jail, Walsh agreed to pay back the $ 20 million with an additional $ 2.5 million as a fine for his actions. The $ 20 million finder?s fee was given to Walsh so Tyco could buy CIT Group, which was owned by Walsh?s friend Albert Gamper, Jr. Tyco bought CIT for $ 9.2 billion and sold it in 2002 for a loss of $ 7 billion. In the first criminal trial against Kozlowski, evidence was presented that showed Kozlowski had admitted to Fort in a January 2002 phone conversation that the $ 20 million payment was a mistake and it was an action that should have been done only with board approval. Fort testified at the trial that board members usually arranged potential acquisitions with-out any additional compensation. Fort told Kozlowski that the payment would have been denied by the board if the board had been aware of the deal.
THE WONDERFUL WORLD OF TYCO ACCOUNTING
On June 13, 2002, the SEC announced that it was starting an investigation of Tyco based on its accounting procedures. The SEC wanted to determine whether Tyco was using its reserve accounts to artificially increase its level of profitability after a number of acquisitions by the conglomerate. The investigation was a reopening of an investigation the SEC had started in 1999 and finished in 2000 after Tyco had acquired more than 120 companies in six years during the 1990s. There were questions pertaining to the $ 3 billion in restructuring charges that Tyco realized after the acquisitions took place. The 1999 SEC investigation took place when Albert Meyer, from the firm David W. Tice, raised concerns about how Tyco was using aggressive accounting methods during its acquisition splurge. The internal audit to examine the books for Tyco took 25 lawyers, 100 accountants, and 65,000 hours to review the financial trans-actions of more than 45 Tyco operating units. On December 30, 2002, Tyco admit-ted that it had artificially inflated profits for years and would have to eliminate the $ 382 million in profits that had previously been reported by the company. The five-month internal investigation revealed that Tyco had a corporate culture that encouraged managers to bypass accounting rules to inflate the results of their department?s performances. One department memo stated that the employees for one of the Tyco divisions had to try to reduce costs through the process of financial engineering. Another division stated that the employees had to create stores to validate the ac-counting changes that occurred, which increased the level of profitability of the division. The internal audit also discovered that Tyco would force companies that it was acquiring to report lower performance numbers so when Tyco took over the company, it could present a dramatic increase in financial performance. The investigation also found that there was poor documentation of transactions, the policies and procedures in place to control for fraud were not adequate, and there were inadequate procedures for authorizations of employee?s actions. Some examples of improper authorizations included employees having company cars and also receiving car allowances and having a $ 150,000 charitable contribution given to an organization that was not a charity. By April 2003, Tyco had estimated that it had an additional $ 1.2 billion in accounting problems that had to be restated. This announcement came after two announcements in March in which Tyco had estimated restatement of its financial statements of $ 265 million and $ 325 million. From October 2002 to August 2003, Tyco had to revise or restate its financial statements on five separate occasions with the net result being a reduction of $ 2 billion in pretax profits from Tyco?s previous financial statements from 1998.
KEY EMPLOYEE LOAN PROGRAM
In 1983 then- CEO John Fort established the Key Employee Loan Program as a way in which top executives could borrow money from Tyco to pay for taxes on their stock options. The premise behind the program was that Tyco did not want the executives to be forced to sell shares in Tyco stock to pay the taxes when they exercised their stock options. The purpose of the program was to pay taxes only on stock options, and that was explicitly stated in Tyco?s 1995 proxy statement. Tyco?s former treasurer, Barbara Miller, testified in the first trial that in 1997 the scope of the program moved beyond loans for tax payments. Tyco?s former CFO, Swartz, told Miller that executives could now borrow money for any reason with the only restriction being that the total amount borrowed must not surpass a calculated percentage of the executive?s restricted stock holding based on the executive?s tax rate. As a result, Kozlowski and Swartz borrowed Tyco money through this program to buy real estate, jewelry, and other personal items. One of the charges was that Kozlowski and Swartz were stealing $ 37.5 million from the loan program. Kozlowski had loans worth $ 25 mil-lion wiped out while Swartz did not have to repay $ 12.5 million from the loan pro-gram. A third person, Barbara Jacques, who joined Tyco as a secretary in 1986, also had $ 1 million forgiven from the loan program. The prosecutors in the first trial asked why a secretary also benefited from the select Tyco forgiveness program. The reason was, they concluded, that Jacques had an affair with Kozlowski starting in 1986 when he was still married to his first wife. The prosecution also concluded that Kozlowski must have controlled the forgiveness program to allow only himself, Swartz, and Jacques to be able to participate in the program. Jacques would eventually be-come the event planner for Tyco and was in charge of coordinating the infamous fortieth birthday party in Sardinia, Italy, for Kozlowski?s wife. Linda Auger, head of Tyco?s accounting department, testified in court that Kozlowski used his loan account to buy an $ 8 million painting, $ 50,000 in flowers for a Christmas party, and restaurant tips that sometimes reached up to 50 percent of the bill on Kozlowski?s corporate credit card. In 1998 Kozlowski used his account to pay for his $ 8.3 million investment in the New Jersey Nets and to buy a 1999 Porsche Carrera for his future wife. In September 1999 he used the account to buy his own sailboat, Endeavour, for $ 13.5 million. In 2001 Kozlowski used his account to purchase a $ 5 million diamond ring for his wife.
KEY EMPLOYEE RELOCATION PROGRAM
The employee relocation program was designed to compensate employees when they moved to the New York office of Tyco. After the board approved the design and use of the program in 1995, it was alleged that Kozlowski and Swartz adjusted the scope of the program. The limited scope of the program was based on the legal opinion of a Boston law firm that concluded that if additional benefits were given to the executives as part of the relocation program, it would be considered additional compensation for the executives, which would require a disclosure of that information in Tyco?s proxy statements. The two executives told Barbara Miller, who was Tyco?s treasurer from 1993 to 1998, that the relocation program would now include additional expenses such as paying for second homes for executives and paying for private school tuition for children of the executives. At the time of this adjustment, Swartz had three school aged children. Miller had testified that Swartz would give her handwritten alterations to the criteria of the program.
TYCO BONUS PROGRAM
In 2002 the Tyco Bonus program was introduced even though it was not authorized by the board of directors. The purpose of the program was to forgive relocation loans for employees who had bought homes and moved to the Tyco offices in Boca Raton, Florida. As a result, Tyco paid for the homes of the employees transferred to Florida as well as the related taxes when they purchased the houses. When Patricia Prue, who was head of Tyco?s human resources department from 1998 to 2002, asked Swartz if this bonus plan had been approved by the board of directors, he and Kozlowski told her the program had been approved. Kozlowski received a forgiveness loan of $ 33 million from the program, while Swartz got $ 16.6 million. A total of $ 96 million was paid to approximately fifty employees in September 2000.
PRICEWATERHOUSECOOPERS, TYCOS EXTERNAL AUDITOR
On February 7, 2003, prosecutors accused PricewaterhouseCoopers (PWC) of knowing about the unauthorized bonuses and loans and not investigating them. It was re-ported that PWC met with Kozlowski and Swartz about the unauthorized transactions and PWC had determined that they were not material and did not need to be disclosed. The SEC accused Richard Scalzo, who was a partner at PWC and the chief external auditor for Tyco, of ignoring the accounting practices that were occurring at Tyco. The SEC claimed that Scalzo did not press for information pertaining to the unauthorized loans and bonuses and other extravagant perquisites that were given to the top executives at Tyco. Based on his actions in the Tyco account, Scalzo agreed to an SEC settlement that stated he would no longer be allowed to practice as an accountant before the SEC, meaning that he would not be allowed to be an auditor. An example of Scalzo not performing due diligence was that he knew that Tyco had a general reserve that was being used to offset expenses that management had not anticipated. The setting up of this reserve is not allowed under generally accepted ac-counting principles. In addition, Scalzo knew that Kozlowski and Swartz had borrowed $ 35.5 million and $ 8 million, respectively, interest free. Scalzo agreed with Swartz?s argument that the loans were not material. Tyco?s former senior vice president for finance testified in court that Scalzo knew of the $ 96 million in forgiveness loans that were implemented in Bonus 2000 and did not stop it when it was classified as a direct cost associated with an initial public offering of the Tyco optical fiber subsidiary. Scalzo reportedly stated that was an unusual accounting treatment but he would not overturn the transaction. In court, Scalzo testified that he did review how some of the bonuses and loans were accounted for on Tyco?s books. When asked if he ever verified that the board of directors had approved the bonuses and loans, Scalzo said that he did not because it was not part of the auditing procedure.
THE BEGINNING OF THE END
On September 29, 2003, the first trial of Dennis Kozlowski started in Manhattan. The prosecutor in the courtroom accused Kozlowski and Swartz of shamelessly violating the trust that investors had in the management of Tyco. In addition, the prosecutor accused the two former executives of considering Tyco assets to be their own and that they were using them when the executives wanted Tyco to pay for their expenses.
On November 4, 2003, Tyco announced a net loss of $ 297.1 million for the quarter and stated that it would close 219 operations and lay off seventy- two hundred employees, which represented 3 percent of its workforce. On November 11, 2003, Tyco announced that it had signed a five- year contract with Legal Knowledge Company so every employee could take ethics classes. It was the first comprehensive ethics training program ever at Tyco. On March 18, 2004, the prosecution in the trials of Kozlowski and Swartz concluded its closing arguments and the jury was sent out to reach a verdict. The chance of a mistrial became larger and larger as notes from the jury commented that the atmosphere within the jury room became poisonous with one jury member holding out. The suspected juror was Ruth Jordan, also known as Juror No. 4, who was a former teacher with a law degree. On March 26, 2004, Jordan gave the OK sign to the defense table as she walked past it. On April 2, 2004, Judge Michael Obus declared a mistrial after the judge had been informed that one of the jurors had complained about being pressured into convicting the two former Tyco executives. The other jurors stated that after twelve days of deliberations that the rest of the group was ready to convict both men on many of the most serious criminal charges presented by the prosecution. The Manhattan district attorney?s office immediately stated that it would have a retrial for Kozlowski and Swartz. In October 2004 Kozlowski?s New York apartment, home of the $ 6,000 shower curtain, was sold for $ 21 million. The price included many furnishings but not the shower curtain because prosecutors had taken it for evidence in his trial. On April 27, 2005, Dennis Kozlowski took the stand in defense of the charges against him in his retrial. He did not take the stand in the original trial. He denied that he had committed any crimes and that his goal was for Tyco to grow as a company. Kozlowski could not tell the court why the $ 25 million that was a forgiveness loan from Tyco was not reported as income on his 1999 W- 2 form. He stated in court that he wasn?t thinking that he had a forgiveness loan when he signed the tax form.
On May 31, 2005, the jury deliberations started for the retrial of the two executives. On June 17, 2005, L. Dennis Kozlowski and Mark Swartz were convicted of fraud for falsifying business documents, grand larceny, and conspiracy. After ten days of deliberations, both men were convicted on twenty- two criminal counts and were acquitted on one count of falsifying business records. Ruth Jordan, the OK juror from the first trial, commented that she was a little shocked because she still believed they were both not guilty. The jurors in the second trial stated that they felt that Kozlowski was not believable and that Swartz was a very good liar. An executive who is caught stealing money from his employer is guilty of an extremely egregious crime with the executive being sentenced to the maximum term allowed by law. No, this was not the prosecutions recommendation for the two Tyco executives; the author of this statement was L. Dennis Kozlowski, who wrote a letter to the sentencing authorities after a conviction of an assistant controller at Tyco in 1995. The prosecution weighed whether to include this letter when Kozlowski and Swartz were to be sentenced for their crimes.
After the conviction of Kozlowski and Swartz, the government inventoried both of their assets to determine what could be seized for restitution with the proceeds going back to Tyco and its investors. The government claimed that combined, the two executives looted Tyco of more than $ 600 million, which included illegal stock trans-actions. Some of the assets are listed in Table 3. On September 19, 2005, Dennis Kozlowski and Mark Swartz were both sentenced to the same prison terms. The judge sentenced them both to eight years and four months to twenty- five years for their crimes. Both men would be eligible for parole after six years, eleven months, and nine days. The maximum sentence they could have faced was fifteen to thirty years, and the minimum was one to three years. The court also ordered the two executives to pay $ 134 million in restitution to Tyco, and Kozlowski was fined $ 70 million and Swartz was fined $ 35 million. The prosecutors had asked for the maximum sentence and concluded that Tyco had become a global symbol of kleptocratic management. Because

Kozlowski and Swartz were convicted in state court and not federal court; they would be sentenced to a state prison, considered to be much harder to serve their time than a federal prison, which houses white- collar criminals. In New York State, if a convicted felon is sentenced to more than six years in jail, he or she is usually sent to a maximum- security state prison. The state prison houses mostly violent offenders and the inmates get paid $ 1.05 per day for doing six hours of work.
On the same day, the SEC recommended that an accounting fraud case be started against Tyco for allegedly inflating its profits by approximately $ 1 billion. A defense attorney for the executives complained that the SEC intentionally announced the investigation the same day as the sentencing to influence the length of the sentence for the two men. On April 17, 2006, Tyco settled with the SEC by paying a fine of $ 50 million for artificially inflating by $ 1 billion from 1996 to 2002 profits it reported to the SEC.
In an ironic twist, on May 3, 2006, Tyco sold two of the paintings that were shipped in empty boxes in New Hampshire for $ 7.8 million. Fleurs et Fruits by Renoir sold for $ 2.8 million and Pres Monte- Carlo by Monet sold for $ 5 million. Nine days later Kozlowski agreed to pay $ 21.2 million to settle tax evasion charges that had been filed against him in New York for the purchase of the artwork. Kozlowski also agreed to pay $ 3.2 million in sales taxes that were not paid and an additional $ 15 million for fines and penalties related to the tax evasion.
In June 2006 Kozlowski requested that Tyco reimburse his legal costs under his officer and director liability policy at Tyco. Kozlowski had submitted a claim of al-most $ 17.8 million to Corporate Officers & Directors Assurance Company, which had provided liability insurance for Tyco. In an apparent case of what have you done for me lately, Karen Kozlowski filed for divorce on July 31, 2006. Karen Kozlowski, who enjoyed her $ 2 million fortieth birthday party in Sardinia, had declared that their marriage had been irretrievably broken. She had requested that a lien be put on their Boca Raton mansion to protect the asset from the government and potential lawsuits. The fifteen- thousand- square- foot waterfront estate was purchased for $ 19 million using interest- free Tyco loans. The settlement requested that all of the assets of the couple be equally distributed with the additional stipulation that Dennis pay Karen financial support. A prisoner in the New York state penal system averages a wage rate of one dollar per day.
In an ironic full circle, on December 15, 2006, New York state sales tax charges against Kozlowski were dismissed when prosecutors reached a deal with the former CEO. Kozlowski had agreed to pay approximately $ 21.2 million to pay off his tax liabilities as they related to New York income and sales taxes. Along with the $ 21.2 mil-lion, Kozlowski had also agreed to pay $ 97.7 million in restitution. The dismissed charge came when Kozlowski had already liquidated $ 125 million in assets to pay for the penalties and fines.

Budget Deficit Project - CALIFORNIA STATE GOVERNMENT

Each student will choose a specific government that has budget deficit problems or face budget shortfalls .You may choose any government at the local, state, and federal level. It can be a general purpose government such as the state government, federal government, and city government Once a specific government is chosen, the student should collect information about the budget problem, analyze the information, and address the following 5 components of the project.

1. Definition of the budget deficit (shortfall) problem.

This involves describing the status of the budget deficit problem. It may include several sub-items. Magnitude of the problem: How much shortfall does the government have? Duration of the problem: How long has the deficit been in existence? Future prospect: Is it going to be reduced or increased in the near future? Actors: Who are the main actors who play some roles in the deficit problem (they may include politicians, administrators, interest groups, and citizens)? Politics: What are the political issues, ideologies, and strategies in defining the budget deficit problems?

2. Causes of budget deficit (shortfall) problems.

What are the causes of the budget deficit or shortfall? They may include over spending, inefficiency, interest group capture of politicians, population increase, decreases in revenues, weak economy, etc. We should also look at the political aspects of the causes. Who are blaming whom for the deficit problems? What kinds of political actions or reactions are being proposed or discussed?

3. Strategies of solving budget deficit problems.

Here we want to describe the different strategies (or options) that are proposed or discussed by various actors. They may include service cuts, tax increases, borrowing, etc. Note that the strategies may be influenced by the political ideologies or inclinations of the actors involved.

4. Recommendations.

Here we want to make some recommendations that can address the budget deficit problems of the chosen government. Students should evaluate and discuss various strategies that are proposed in the preceding section and then make a recommendation that can address the budget deficit (shortfall) problems.

5. Reflections.

This second section is about individual students? reflections on the budget deficit problem project. Each student should describe their learning experience that they obtained throughout the project (What was learned, how it was learned, how was the quality of interactions s/he had with others with information providers and other students, what were the challenges, how were the challenges handled, what were the most exhilarating learning moments, etc.).

We should always try to find political as well as technical aspects of issues when we collect, analyze, and discuss the definitions, causes, and solutions of budget deficit problems. Also, we should try to explain the uniqueness of the case (as compared to the cases of budget deficit problems of other governments) whenever possible.

In general, each component should be about 2 pages long and the entire project should be about 10 pages long (about 2 pages x 5 components = about 10 pages).

You may use a variety of information sources. They may include books, journal articles, magazine and newspaper articles, information from websites, information from the relevant actors (through personal or telephone interviews), and your own personal experience. Please be sure to identify the source of the information that you post or write about.


ADDIONAL INFO SOURCES:

ASSEMBLY SPEAKER NUNEZ SAYS REAL BUDGET CUTS MUST PRECEDE CALL FOR HIGHER TAXES; ASSEMBLY DEMOS REPORTEDLY AGREE ON SOME SPENDING CUTS
Assembly Democrats reportedly concur on about $1 billion in current-year spending cuts, and could move them to a vote as early as next week. According to the Los Angeles Times (February 11), new Speaker Fabian Nunez was moving swiftly just a day after officially taking over the top Assembly job.
The Sacramento Bee (February 13) reported that the Los Angeles Democrat's agenda does not lead with higher taxes. "For my folks, this (recall) election was a wake-up call to look at things differently. The new Democratic agenda is one that doesn't necessarily call for raising taxes."
Other solutions, such as more federal funding and more spending reductions, are needed before higher taxes are sought, he said, as if to say blood on the floor from deep cuts would rally the Legislature to raise taxes. "People need to see the cuts, they need to see cuts that are real. They need to feel the pain before you can move forward with any other types of alternatives that bring in new revenues."
Senate Democrats may disagree, of course, and even some Assembly Democrats still feel taxes are part of the solution in 2004-05. Assembly Member Wilma Chan, author of a soak-the-rich income tax bill with 24 co-authors, told The Bee: "My personal point of view is that we can't solve this problem without raising taxes of some sort."
Earlier, the Los Angeles Times reported that the Assembly's new Budget Committee chair, Darrell Steinberg, was preparing a list of budget reductions. However, the paper said the reductions do not include any of the governor's proposals to cut growth in spending in transportation, health and social services programs.
Deputy Finance Director H.D. Palmer reacted: "It is certainly forward progress, and we are glad to hear this is happening. That said, we have a long way to go."
County Supervisor Urges State to Use Redevelopment Money. Orange County Supervisor Chris Norby has urged the governor to take money from redevelopment agencies to help balance the budget. Counties and cities have protested the governor's plan to take $1.3 billion in property tax revenues from local government. "Instead of loudly complaining, however, county and city leaders should find the governor the money he needs without cutting vital local services. And the money is there, right in front of us," Mr. Norby writes in his February 6 newsletter ("Norby Notes"). He wrote that California's redevelopment agencies get $2.5 billion in annual property tax revenue and need only $1.2 billion to meet current annual bond payment obligations. That leaves them with $1.3 billion in discretionary spending, he stressed.
Accelerating the Process. The governor is developing a strategy to accelerate the budget process by a month to address the state's cash crisis, according to a Los Angeles Daily News report
News and Analysis from the California Taxpayers' Association
Caltaxletter
VOL. XVII, NO. 6 - FEBRUARY 13, 2004
(February 9). Instead of mid-May, the governor would present the Legislature with his revisions in April. It would show Wall Street bond rating houses that California has a credible fiscal plan. The paper quoted Deputy Finance Director Palmer as saying no final decision has been made "but we are looking at what you would have to do on an operational basis to prepare a revised budget before the second week in May." The governor said last month at the Sacramento Press Club luncheon that he hoped to have the 2004-05 budget passed in May. The constitutional deadline is June 15 for legislative passage. The fiscal year begins July 1.
State Employee Contracts. On February 6, the governor told eight state employee unions that he wants to renegotiate their contracts, including bargaining units representing the highway patrol and prison guards. These two have pacts running to July 2006, and, reported the San Francisco Chronicle, their leaders are defiant about reducing pay or benefits. They want higher taxes. The governor said he wants the contracts to be competitive enough to provide a "competent workforce without unduly burdening the taxpayers of California." He wants state employees to pay an additional 1 percent of salary toward their pensions.
A Costly Foster Child Ruling. A federal judge in Sacramento has ordered the state and its counties to pay more than $80 million for foster care benefits for children living with relatives. The ruling on February 10 by Judge Frank Damrell affects about 18,000 foster children statewide who have been removed by court order from parental homes and living primarily with their grandparents.



GOVERNOR SCHWARZENEGGER CALLS BETTER BUSINESS CLIMATE - JOBS, NOT HIGHER TAXES - KEY TO CALIFORNIA RECOVERY
In the most-watched speech ever delivered by a California governor, Arnold Schwarzenegger on January 6 delivered a strong and confident message that he will lead the state to fiscal recovery. Among his key points were proposals to improve the economy with a brighter business climate that produces more taxpayers, not higher taxes.
The state's 38th governor, a moderate Republican, pledged in his State of the State address to rein in spending growth that far outpaced revenues in the past five years, cut government waste with a new focus on performance, and reorganize educational spending.
He reiterated his stand against higher taxes and put workers' compensation insurance reform at the top of his list of priorities needing action by the Legislature.
He warned of fiscal chaos if voters do not approve his California Recovery Bonds and balanced budget amendment on the March 2 ballot.
The governor said details - including spending cuts or, in the case of education, a reduction in anticipated growth that administration officials stress is not actually a cut - were to be forthcoming in his proposed 2004-05 budget for the year starting July 1. It was scheduled for release on January 9, after Caltaxletter's deadline.
While the speech was delivered to a joint session of the Senate and Assembly, the actor-turned-politician clearly intended his remarks for the television audience. Cameras representing networks sending signals around the world chronicled the event. There were perhaps three times as many reporters covering this event than have shown up for any previous California governor - including Ronald Reagan.
He launched his campaign for voter approval March 2 of the $15 billion California Recovery Bond (Proposition 57) and a constitutional balanced budget amendment (Proposition 58) that he and the Legislature approved in December's special session. These measures, if approved by voters, will help California dodge the bullet in the current fiscal year. However, he said a second bullet, a $15 billion deficit in the next fiscal year starting July 1, is leaving the barrel - "aftershocks of past financial recklessness." Solutions to these must now be negotiated, he said, in the context of his 2004-05 budget proposal.
And he threw down the gauntlet on workers' compensation insurance by targeting lawyers, labeling as villains a core constituency of the Legislature's majority Democrats. When he said there must be real workers' comp reform by March 1, or he will work to place the issue before voters next November, he glanced at Senate President Pro Tem John Burton with a confident aside: "You can do it."
News and Analysis from the California Taxpayers' Association
Caltaxletter
VOL. XVII, NO. 1 - JANUARY 9, 2004
Senator Burton, arguably the most powerful member of the Legislature, was a thorn under former Governor Gray Davis' saddle. (Some say he had as much to do with Davis' demise through last October's recall election as anyone, since he was often at odds with his fellow Democrat officeholder and at times did not appear to take him seriously.)
In his lame duck year due to term limits, Senator Burton remained adamant that there must be higher taxes - particularly on the rich - and vowed to protect programs representing core Democratic values. He pushed through a workers' comp bill last summer that was strongly influenced by workers' comp applicant attorneys, hammering doctors and therapists.
Business Climate: Jobs, not Higher Taxes. "A tax increase would be the final nail in California's financial coffin," the governor said, noting that more taxes "will destroy what we're trying to save - which is jobs and revenue. Jobs bring revenue to the state ... The people of California did not elect me to destroy jobs and businesses by raising taxes."
He named himself California's "jobs czar" and said he would travel the world to bring more jobs to California.
California Recovery Plan and March Election. Approval of Props. 57 and 58 on the March ballot are "absolutely critical to our financial future. The alternative is economic chaos," he said, pointing to billions of dollars worth of loans the state must repay in June but will otherwise not have the money to do so.
He named state Controller Steve Westly, a Democrat, to serve as his co-chair of the California Recovery Bond Committee.
Workers Comp Reform: March 1 or Else. He said fixing the state's business climate must begin with an overhaul of the workers' comp system because costs are the highest in the nation, nearly twice the national average and employers are "bleeding red ink." He said, "Our high costs are driving away jobs and business."
His proposal would bring California's program in line with the rest of the country and, by requiring nationally recognized guidelines for permanent disability, it would emphasize the importance of health care and doctors rather than lawyers and judges. He said he will not accept modest reform and if the Legislature doesn't give him a bill with real reform by March 1, he will launch an initiative campaign for the November ballot.
Senator Don Perata, an Oakland Democrat believed to be in line to become the next Senate president pro tempore, said workers' comp reform would be too complicated to put on the ballot.
Unemployment Insurance. He said California had to borrow $1 billion in December to pay UI benefits. The system is broken and must be fixed, he said, citing the highest employer UI costs in the nation. The UI fund has a $2 billion deficit that will continue to grow at an annual rate of $2 billion to $3 billion "unless significant changes are made," he said.
California Performance Review Commission: Attacking Government Waste and Fraud. "We cannot afford waste and fraud in any department or agency," he said as he called for a massive overhaul of the executive branch. "I plan a total review of government - its performance, its practices, its cost." He called for ideas - "the more radical the better."
The governor announced creation of a commission with representatives from the Legislature, business, local government, constitutional officers and other interested parties. It will hold hearings to get recommendations from the public and others. The review will be accomplished by a team of 125 to 150 senior managers, borrowed from within state government.
"Every governor proposes moving boxes around to reorganize government. I don't want to move boxes around; I want to blow them up." He called state government's executive branch a "mastodon frozen in time and about as responsive."
Energy Crisis. "Something is wrong when it is easier to create energy agencies than power plants," said the governor, who wants to renegotiate more energy contracts that locked in higher prices and fix a flawed regulatory structure so large electricity customers can get lower rates. He said the energy crisis "is not over."
Education Reform. He called for greater efficiency in spending existing dollars by taking $2 billion worth of categorical programs and letting school districts have the money without state strings attached. He also called for contracting out school busing and maintenance services, allowing districts to cut spending on non-classroom services. He wants a repeal of SB 1419, which prevents schools from contracting out such services.
Education Funding Agreement. The governor on January 8 announced an agreement with the education coalition led by the teachers union to protect Proposition 98 for the future while providing $2 billion in budget relief for the coming fiscal year. It is to provide $200 in additional per-pupil funding.
Reaction. Reaction among legislators was generally split along party lines. Democrat leaders, such as Senator Burton, continue to demand higher taxes. Republican leaders, such as Senator Jim Brulte and Assembly Member Kevin McCarthy, were four-square behind the governor's remarks.
Cal-Tax President Larry McCarthy issued a statement praising the governor's pro-business, anti-tax stance. "He clearly understands that raising taxes will kill jobs." Taxpayers also should applaud the governor's plan for a massive overhaul of government to make it more efficient, he said, noting that billions of taxpayer dollars have been squandered through waste, fraud and inefficiency. (Note: Dozens of examples of waste and fraud in government spending have been compiled by Cal-Tax and can be found at Waste and Fraud in Public Spending.)




BUDGET UPDATE: GOVERNOR MEETS WITH COUNTY LEADERS; ASSEMBLY PANEL SEEKS ACCOUNTABILITY FOR OVERSPENDING THE STATE'S BUDGET FOR PRISONS
"Everyone here has to tighten the belt," declared Governor Arnold Schwarzenegger in his March 17 speech to county leaders, who continue to be unhappy with the governor's plan to take $1.3 billion of property taxes to help the state balance its budget.
However, he encouraged the Sacramento gathering of counties' supervisors by agreeing with them that there are "too many strings attached to the dollars that come from Sacramento. ... I want to change that and restore local control."
Supervisors also met privately with the governor and, according to Copley News Service, they told him they want to consider the property tax shift a loan.
CNS quoted San Diego County Supervisor Greg Cox as saying the governor gave signs that he was open to change. "We didn't expect him to say OK. He didn't say no. He said let's sit down and see if we can come up with some alternatives."
CNS also reported that counties want to negotiate a deal that calls for local governments to provide $816 million of the property tax sought by the governor, while taking more from cities, redevelopment agencies and special districts.
Cities and counties also are gathering signatures for a November ballot initiative that would require voter approval before the state could reduce local funding, including property taxes.
Elsewhere on the budget front:
Prison Spending is Probed. The Assembly Budget Committee on March 18 conducted an oversight hearing on the state prisons budget, focusing on why the system could not operate without going hundreds of millions of dollars over budget. The Schwarzenegger Administration intends to hold wardens accountable for their budgets, meaning they could lose their jobs.
According to the administration, overspending seems to be an acceptable and expected routine in recent years. Youth and Adult Correctional Agency Undersecretary Kevin Carruth, who had served prior to the Davis administration: "When I was here before, if you overrun your budget, you could fully expect to be fired." He said the Department of Corrections has been running deficits since 1998-99, creating a "culture of it being OK to overrun your budget." He said there were legitimate reasons for some additional costs, but "once you are running over, what's another million here or there?"
State Auditor Elaine Howle noted that her office has been critical of department overtime, citing a November 2001 report that dinged it for not aligning spending with legislative authorizations. The department was not anticipating such things as vacations, using overtime pay that usually went to more experienced, higher-paid officers.
News and Analysis from the California Taxpayers' Association
Caltaxletter
VOL. XVII, NO. 11 - MARCH 19, 2004
How do you control overspending? The Schwarzenegger Administration wants the prison system to have clear operations standards, with wardens required to seek permission to deviate from them. Wardens would have to justify the need for a function that requires overtime pay, said James Tilton of the Department of Finance. In the past, he said, "Very bluntly, in my opinion, the budget became meaningless to the Department of Corrections."
As reported in The Sacramento Bee, the prison department blamed staff pay raises, soaring costs of inmate health care and unauthorized spending for a $5.6 billion budget that has soared 41 percent, or $1.6 billion, in the past five years.
Eliminating Two State Holidays Would Save $20 million. Assembly Member John Campbell has introduced AB 2460, which would eliminate two of the 14 paid holidays enjoyed by the state's 200,000 employees. Mr. Campbell, according to The Sacramento Bee (March 15), said, "The vast majority of the public is going to see this as an issue of fairness and budget accountability." But Jim Hard of the California State Employees Association called the bill a "cheap shot" and "political grandstanding" over savings that wouldn't be a "blip on the state's radar screen."
While most private employers recognize 10 to 12 holidays, the average for state employees around the country is 11.2. Texas has the most (15), and Louisiana has the least, eight, plus a biennial Martin Luther King Jr. Day.
The Bee reported that the governor has not taken a position on the bill, and Mr. Campbell faces an uphill fight in a Democrat-controlled Assembly. For example, Hannah-Beth Jackson, a Democrat, said she is worried that such a measure would hurt morale of public employees. Assembly Member Dennis Mountjoy, a Republican, said fiscal conservatives must look "everywhere we can" to save money. "I don't see a problem with this bill."
The $20 million savings would represent what it costs taxpayers for two holidays when those who have to work are given extra pay. Under the bill, state departments would choose which holidays would not be observed by state employees each year.
LAO unearths budget nuggets. The Legislature's budget analyst has combed the massive state budget proposed for 2004-05 to find the following nuggets that sometimes make one wonder who's minding the store:
Ninety of the state's 117 active information technology projects have experienced a change of 10 percent or more in budget, schedule or scope of work.
The governor's proposed cutting of $46 million in enrollment funding at the University of California and California State University systems would still leave enough for the systems to add 6,100 students in 2004-05.
At the Department of Motor Vehicles, the average walk-in waiting time is 80 minutes, despite state law requiring that customers not have to wait in line more than 30 minutes.
Even with a proposed 44 percent increase in Community Colleges fees, California's two-year colleges would still have fees that rank lowest in the nation.
Selling the Department of Forestry and Fire Protection's "King Air" aircraft (which isn't used to actually fight fires) would save taxpayers $400,000 a year. (The Sacramento Bee reported March 19 that the Federal Aviation Administration is investigating the state's use of the $4.6 million turbo-prop plane. The FAA probe is to determine whether the state has properly certified the aircraft for shuttling state administrators to meetings. The Bee also quoted a department official, Karen Terrill, as saying the plane is used "very efficiently. It supports our mission, and it saves the taxpayers money.")
The state must provide all revoked parolees with an attorney.
Of $3 billion in bond funds appropriated in 2002-03 for resources, $2 billion remains unspent.
Although Santa Ana schools have 50 percent more students targeted for Economic Impact Aid than Oakland, the latter district gets $900,000 more in EIA funding.
The budget proposes to eliminate the Office of Problem and Pathological Gambling.
Two million dollars appropriated to the Department of Justice in 2002-03 to acquire a site for a new statewide DNA laboratory were used to offset budget cuts in the department's budget.



UPDATE: LAWMAKERS (FINALLY) READY TO WORK ON BUDGET CRISIS
Legislative budget committees were expected to go to work next week on California's fiscal problems, more than three weeks after Governor Arnold Schwarzenegger released his 2004-05 budget plan. However, a leading Assembly Democrat predicts the governor won't get anything near the $2 billion in mid-year cuts he wants. Each day that passes reduces the amount of current-year savings from mid-year actions.
According to the San Francisco Chronicle (January 27), the governor's Department of Finance was crunching numbers to find how much budget savings the state is missing out on for each day of inaction. The paper also quoted Assembly Budget Committee Chair Jenny Oropeza as saying the governor will not get all he wants. "I'm pretty confident that within the cuts the governor proposed we can find $600 million that will be acceptable on a bipartisan basis. Everything else is a part of the budget discussion for next year." Further, she said, "There is no penalty for being thoughtful and taking our time."
Deputy Finance Director H.D. Palmer said he was unaware of the basis for Ms. Oropeza's figures. The Assembly Republicans' lead budget writer, Rick Keene, said Democrats may be dragging their feet thinking if there are fewer cuts, there will be more pressure to raise taxes.
The problem continues to get worse day by day, said Assembly Member Joe Canciamilla, a leader of the bipartisan moderate caucus. He said the Legislature should be looking at midyear cuts but also studying how funds are being spent and holding each department accountable.
Republicans in the Assembly complained on January 29 that there were no efforts on the workers' compensation insurance front or budget committee meetings while there were hours of floor debate over relatively mundane issues.
Governor Schwarzenegger and Democrat Controller Steve Westly continued their road show campaigning for passage of the economic recovery package placed on the March 2 ballot by the Legislature and the governor in December. Proposition 57 would allow the state to borrow through issuance of $15 billion in bonds to pay for much of the carryover deficit inherited by the new administration. Proposition 58 would amend the constitution to require a balanced state budget.
The governor also said that while he needs immediate action on mid-year reductions, he also expects the Legislature to complete action on the budget in May. That would be a serious long-shot, considering that the existing constitutional deadline for legislative action, June 15, is routinely violated. The fiscal year begins July 1.
Car Tax Refunds. Governor Schwarzenegger on January 27 announced "fantastic news for vehicle owners" through the start of refunds to those who overpaid the car tax (vehicle license fee). On November 17, the newly sworn-in governor repealed the tripling of the car tax retroactive to its effective date of October 1.
News and Analysis from the California Taxpayers' Association
Caltaxletter
VOL. XVII, NO. 4 - JANUaRY 30, 2004
About 4.7 million Californians whose motor vehicle registrations were up for renewal between October 1 and November 17 paid the tripled tax and are due refunds totaling $600 million. The Department of Motor Vehicles sent refund data to the state controller, so refund checks could start being mailed as early as January 30.
Taxes. The governor, in a January 27 appearance before the Sacramento Press Club, reiterated his distaste for higher taxes, which he has many times said would unfairly punish taxpayers for the irresponsible overspending that has occurred in the past five years.
Asked if he were willing to categorically rule out higher taxes in the context of the current budget problem, he replied: "As I said in my State of the State address, it is not that we have a tax problem ... we have a spending problem. When you have a specific problem; that you overspent, you should fix that first. That is the key thing; that is what we are trying to do with the balanced budget (amendment - Proposition 58 on the March ballot - to prevent future deficit spending of such magnitude). The reporter repeated his question, bringing this response: "I am considering only one thing and that is to fix the spending problem because then we are home free, if we fix the spending problem, OK?"
The San Jose Mercury News on January 28 reported under the headline "Governor keeps options open on tax increases" that while he had previously said he opposes higher taxes to help deal with the budget problem, he "skirted questions about whether he might change his mind."
In the January 6 State of the State address, Mr. Schwarzenegger said, "A tax increase would be the final nail in California's financial coffin" and would "destroy what we're trying to save - which is jobs and revenue. Jobs bring revenue to the state ... the people ... didn't elect me to destroy jobs and businesses by raising taxes."
On January 29, speaking at a retirement village in Walnut Creek, the governor warned of painful cuts as well as the possibility of higher taxes if voters reject his March 2 ballot recovery plan. "This is what this is all about," he said. "What do you think why we need to have Proposition 57 and 58 passed? So we don't have to make further cuts. So we don't have to raise the taxes."
Meanwhile, Finance Director Donna Arduin warned that the administration would have to find at least $5 billion in solutions if the bond fails, and Plan "B" involves that much in additional program cuts beyond what has been proposed in the 2004-05 budget. This scenario would involve a court validation of the $10.7 billion in budget deficit bonds authorized by the Legislature and then-Governor Gray Davis last year but so far stymied by a legal challenge.
The state also would have to exercise an option with banks to pay off about $14 billion in loans due in June, which would mean even more short-term borrowing at far greater interest expense to the state.
Asked about the governor's recent sidestepping of the question of whether he would categorically reject higher taxes as a budget solution, Deputy Finance Director Palmer on January 28 referred to the governor's State of the State speech and said he remained "dead-set against tax increases." A report to the contrary was the work of an "overzealous" headline writer, he added.


DEMOCRATS HOSTILE TO MID-YEAR CUTS IN INITIAL BUDGET HEARINGS
Senate and Assembly budget committees held initial hearings on Governor Arnold Schwarzenegger's proposed budget and showed little interest in making mid-year spending cuts.
The Assembly Budget Committee on February 5 did not discuss the governor's proposal to cut $3.8 billion over 19 months when proposed on November 25. Committee Chair Jenny Oropeza said there was "no negative impact" to holding off, "no danger of having a problem by taking a little time to be thoughtful."
On the Senate side, majority Democrats on the budget panel trashed $1.9 billion in current fiscal year cuts, rejecting the higher education proposals. However, reported the San Francisco Chronicle (February 6), they didn't shut the door on approving some of the cuts after more study.
Senator Jack Scott, former Pasadena City College president, said cuts in higher education would be "disastrous in terms of the economic future of California. These are the intellectual resources that we will call upon to fuel the economy."
Chief Deputy Finance Director Mike Genest urged legislators to take another look at the higher education reductions, including the provisions to make so-called "professional students" pay extra for classes beyond what they need to graduate. "Our proposal is very well thought through. Both (University of California and California State Universities) systems know that all of state government has to step up and take some reductions."
On the Assembly side, moderate Democrat Joe Canciamilla questioned the delay, reported the Contra Costa Times. "I don't know why we're not making mid-year cuts. I don't know, and I'm not getting any decent answers back."
Deputy Finance Director H.D. Palmer said legislative delay has caused the state to miss $50 million in potential budget savings, a number that grows daily. The Chronicle reported that, according to the Schwarzenegger administration, the state would lose $405 million over two years if mid-year cuts are not made until April 1.
Senator Richard Ackerman, a Republican, said Democrats "would rather raise taxes, even though we're the highest taxed state in the nation." Senator Byron Sher, a Democrat, countered, "That's not true. We believe you need a combination" of taxes and cuts.