by Mike Gallagher for the CMF NewsWire
Posted: 1/20/2009

The news that the New York-based JEHT Foundation would close its doors as a result of the $50 billion Ponzi scheme that, according to authorities, was masterminded by investor Bernard Madoff came as a shock to many Michigan foundations funding the successful Michigan Prisoner Re-Entry Initiative (MPRI).

The initiative provides state inmates close to release with educational and job training programs, counseling, employment placement services, healthcare, family support and more to ease their transition back into society and prevent recidivism. I

n 2005, the JEHT Foundation provided the necessary funding ($2 million) to launch the MPRI with a $1-for-$1 challenge grant to Michigan community foundations looking to bring the program to their communities.

The JEHT funding – which continued into 2008 – sparked support from foundations across the state in communities including Grand Rapids, Muskegon, Lansing, Saginaw, Traverse City and Detroit.

Grants from Michigan foundations helped fund the development of MPRI sites and acquisition of specialized expertise to support the project’s initiatives to educate state policymakers, corrections officials and the general public about the positive economic and social benefits of the effort.

And, prior to the Madoff debacle, JEHT was considering further funding in Michigan to support development and evaluation of an MPRI Learning Site. “MPRI is a project that is working for both inmates and their families and financially for the state,” says Karen Aldridge-Eason, Michigan’s Foundation Liaison to the Governor and one of the key leaders forging the relationship between JEHT, its Michigan foundation counterparts and state officials.

“We can’t change what has happened to JEHT, but foundations throughout Michigan can now step up to help carry on this valuable work benefitting communities impacted by those ex-offenders returning home and in need of the services MPRI makes available,” adds Aldridge-Eason.

State Wants MPRI Continued

Michigan Corrections Director Patricia Caruso was unequivocal about the department’s continued commitment to MPRI despite the JEHT/Madoff “tragedy.”

In a recent communication to Michigan Department of Corrections’ (MDOC) management staff throughout the state, the director stated, “We will fully assess the impact of this news to minimize the impact caused by this unfortunate set of events. This will involve examining all potential strategies within state government, with our partners in the foundation community, and with others.

“While this news is shocking, particularly for our friends at the JEHT Foundation who have been so gracious to us, we are confident that our re-entry efforts will continue at the same robust pace as planned.”

Caruso added, “I have spoken with Governor Granholm and she too remains fully supportive of the MPRI.”

The state legislature’s support for MPRI is expected to continue, as well.

According to State Representative Alma Wheeler Smith, chair of the House Appropriations Subcommittee on Corrections, “We remain committed to supporting full implementation of the MPRI. The unfortunate demise of the JEHT Foundation does not change that one bit.”

The financial benefits to the State of Michigan in having the MPRI are impressive, noted Caruso and MDOC Deputy Director Dennis Schrantz.

“The success of MPRI means less money spent on corrections dealing with inmates committing new crimes in their communities and returning to prison,” said Schrantz. “That savings of tax dollars can be re-targeted for education, workforce development, retraining of unemployed workers and other more positive projects.”

Figures provided by the state and JEHT show that Michigan is looking to save $42.7 million at the end of the first year of full implementation (FY 2008); $64.3 million at the end of the second year; and $75.9 million at the end of the third year.

Those figures do not include the costs of crime in communities; jail time for former prisoners; court involvement; and emergency and crisis services related to criminal acts.

State corrections’ officials say data gathered on the initial two years of MPRI prove it is a success. Prior to MPRI, state records show the return rate for parolees in Michigan was 48% within the first 24 months. The return rate for 1,200 MPRI participants was 23% – a 77% success rate – within the first 24 months. To date more than 8,000 parolees have gone through the re-entry program and their collective recidivism rates have dropped 26%.

“To put it in perspective,” said Schrantz, “the state spends approximately $6,800 annually to educate one (K-12) student in Michigan. Our costs currently total $30,120 annually to incarcerate one prisoner.”

Foundations See The Benefits

In the year since receiving its $200,000 matching grant fund from the JEHT Foundation, the Grand Rapids Community Foundation (GRCF) awarded $275,000 in grants to local programs supporting MPRI.

GRCF President Diana R. Sieger calls it money well spent.

“We really feel our involvement in MPRI has made a difference, both in the lives of the former inmates coming back into society and also those people in our community who want to see reduced crime rates,” said Sieger. “MPRI is a common-sense solution to a serious problem…and our support has helped in this effort.”

David O. Egner, president of the Hudson-Webber Foundation, said he is saddened by what has happened to JEHT, but said he hopes Michigan’s foundation community will “reach down deep” to provide support of the initiative.

“MPRI is making a difference in our state and we expect to see even more benefits from the initiative when it is fully integrated throughout Michigan in 2009,” says Egner. “The governor, legislators and corrections department leaders are dedicated to making this work and ensuring it continues to be a success. It is a project that is working…and worth keeping.”

Michael Berro from Michigan Works! oversees MPRI in St. Clair County. He said program officials work with local social-service agencies to help parolees find housing, employment, substance-abuse treatment and other forms of support.

“Thanks to foundations throughout Michigan, MPRI is making a difference in the lives of these ex-offenders, their families and the communities they return to,” said Berro. “I hope MPRI can continue…because it is a positive program working for everyone.”

Aldridge-Eason said she and the Council of Michigan Foundations are now reaching out and talking with foundation leaders throughout the state to share with them the importance of continuing the MPRI and asking them to consider picking up some of the funding slack resulting from JEHT’s demise.

“The word we are trying to get out is that any foundation can participate – community, corporate, family or independent foundations,” said the Foundation Liaison. “This is something the entire philanthropic community can and should become engaged in.

“We want people to think more broadly about the issues and impact of ex-offenders needing the important services provided by MPRI and the impact on their community, families and state if this vicious cycle of recidivism is allowed to continue,” added Aldridge-Eason.

For more information on MPRI or to get involved, contact the Office of the Foundation Liaison’s office at 517.335.4545.