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VT Phone Kickback Percentages and Rates

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file:///T|/telephone%20project%20copied%20to%20T%20drive%209-22-11/VT/For%20VT%20phone%20folder.htm

From: stein [stein919@gmail.com]
Sent: Thursday, April 14, 2011 12:32 PM
To: Paul Wright
Subject: For VT phone folder
See below.
---------- Forwarded message ---------From: Hodgdon, Marcey <Marcey.Hodgdon@ahs.state.vt.us>
Date: Thu, Apr 14, 2011 at 11:16 AM
Subject: RE: End Prison Phone Kickbacks -- Followup
To: stein <stein919@gmail.com>
You are welcome.

Below are the inmate telephone commission rates by contract period. This represents one contract, originally written for a
two year period then amended to extent for two additional one year terms.

10/1/06 – 9/30/08 = 31.6%
10/1/08 – 9/30/09 = 35%
10/1/09 – 9/30/10 = 37%

Marcey Hodgdon, Financial Manager II
Department of Corrections, Business Office
103 S. Main Street, 6/7 South
Waterbury, VT 05671-1001
(802) 241-2297 (phone)
(802) 241-1475 (fax)
marcey.hodgdon@ahs.state.vt.us

From: stein [mailto:stein919@gmail.com]
Sent: Thursday, April 14, 2011 12:05 PM
To: Hodgdon, Marcey
Subject: Re: End Prison Phone Kickbacks -- Followup

Many thanks. Could you please clarify your statement that the "ending telephone commission" was 37%? Did
the commission rate change during the course of the VT DOC's prior phone service contract? If so, what rate did
it start at?
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file:///T|/telephone%20project%20copied%20to%20T%20drive%209-22-11/VT/For%20VT%20phone%20folder.htm

Alex Friedmann
Associate Editor, PLN
www.prisonlegalnews.org
(615) 495-6568

On Thu, Apr 14, 2011 at 11:01 AM, Hodgdon, Marcey <Marcey.Hodgdon@ahs.state.vt.us> wrote:
Mr. Friedmann:

In response to the question on commission rates – the ending telephone commission percentage of our previous contract
was 37%, just as it is today.

Regarding your last paragraph, I refer you to 28 V.S.A., Chapter 11, § 816. Inmate Recreation Fund (http://www.leg.state.vt.
us/statutes/fullsection.cfm?Title=28&Chapter=011&Section=00816).

~Regards,
Marcey

From: stein [mailto:stein919@gmail.com]
Sent: Thursday, April 14, 2011 10:51 AM
To: Hodgdon, Marcey; ariel.wengroff@state.vt.us
Subject: Re: End Prison Phone Kickbacks -- Followup

Dear Ms. Hodgdon,
Ms. Schwartzkopf forwarded your response to her email regarding prison phone rates (see below). You mentioned that the
"reduction in call rates did not affect the commission percentage." However, it is my understanding that under the

previous contract the commission rate was 35%, and under the current contract the commission increased to 37%. Please
verify whether that is correct.
Also, while prison phone commissions constitute one of the two revenue streams that fund the Inmate Recreation Fund,
one problem with that is that the vast majority of prison phone calls are paid by prisoners' families -- either by accepting
collect calls or by sending money to their incarcerated loved ones to place on prepaid or debit accounts. Why should
prisoners' families thus be funding the Inmate Recreation Fund through phone revenues? Isn't providing for the welfare
of prisoners the responsibility of the state, with that burden to be borne by all taxpayers, not just prisoners' families?
I would appreciate your response.
-Alex Friedmann
Associate Editor, PLN
www.prisonlegalnews.org
(615) 495-6568
-

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From: Hodgdon, Marcey [mailto:Marcey.Hodgdon@ahs.state.vt.us]
Sent: Thursday, April 14, 2011 9:55 AM
To: sschwartzkopf@prisonlegalnews.org
Cc: ariel.wengroff@state.vt.us
Subject: RE: End Prison Phone Kickbacks

Ms. Schwartzkopf:

In September 2010 the Department of Corrections entered into a new contract for the provision of inmate commissary
and telephone services as well as an inmate accounting system. During contract negotiations the Department was able
to obtain lower connection and per minute charges on all types of inmate calls. The reduction in call rates did not affect
the commission percentage, which is one of the two revenues funding the Inmate Recreation Fund (the other revenue
being inmate commissary sale commissions). Please see the table below for a rate comparison as well as an
example highlighting the savings for inmates and their families/friends for an average 15 minute telephone call.

Current Contract Call Rates - Without Taxes
Connect Fees

Local

Intralata

Interlata

Interstate

15 minute call scenario - excluding taxes
Int'l
N/A

Local

Intralata

Interlata

Interstate

Collect

$1.25

$1.25

$1.25

$1.25

Collect

$2.30

$3.50

$3.50

$3.50

Prepaid

$1.00

$1.00

$1.00

$1.00

$3.00

Prepaid

$1.90

$2.50

$2.50

$2.50

Debit

$0.25

$0.50

$0.50

$0.50

$1.00

Debit

$1.00

$2.00

$2.00

$2.00

Collect

$0.07

$0.15

$0.15

$0.15

Prepaid

$0.06

$0.10

$0.10

$0.10

$0.50

Debit

$0.05

$0.10

$0.10

$0.10

$0.50

Rate/Min
N/A

Previous Contract Call Rates - Without Taxes
Connect Fees

Local

Intralata

Interlata

Interstate

Collect

$1.40

$1.40

$1.40

$3.25

Prepaid

$1.40

$1.40

$1.40

$3.25

Debit

$0.75

$0.75

$0.75

$0.75

15 minute call scenario - excluding taxes
Int'l
N/A

Local

Prepaid

Interlata

Interstate

Collect

$2.48

$4.85

$4.85

$10.75

$3.95

Prepaid

$2.45

$4.85

$4.85

$10.75

$1.80

Debit

$1.65

$2.85

$2.85

$2.85

27.84%

67.44%

Rate/Min
Collect

Intralata

SAVINGS
$0.072

$0.23

$0.23

$0.50

N/A

Collect

$0.07

...
[Message clipped]

-Alex Friedmann
Associate Editor, PLN
www.prisonlegalnews.org
(615) 495-6568

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7.26%

27.84%