St. Paul, MN. – A state audit has found that Minncor Industries, Minnesota’s prison labor program, undercharged two private companies by failing to include all labor-related costs in its contracts.
The Office of the Legislative Auditor reported that Minncor omitted wage deductions typically covered by incarcerated workers, resulting in millions of dollars in lost revenue.
The oversight effectively created a taxpayer-funded subsidy, enabling the companies to benefit from prison labor at below-cost prices.
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