Senate Institutions orders DOC studies on prison phone costs and inmate wages under H.294

The Vermont Senate Committee on Institutions on April 3 heard testimony on H.294, directing the Department of Corrections to deliver two written reports by Dec. 1, 2026: an evaluation of telecommunication service models and an assessment of the fiscal and operational impacts of inmate wage changes.

Representative Connor Casey, who served as reporter on the floor for the bill, told the committee the legislation began with broader ambitions — including free phone calls and higher pay — but was scaled back to require studies. "Incarcerated workers in Vermont earn between 25 cents and a buck 25 an hour," Casey said, and cellphone and video rates charged to families can add up; he argued evidence from other states suggests greater phone access can improve family connections and reduce recidivism.

The bill requires DOC to describe the current telecommunications model and contracts, quantify usage and costs, analyze alternatives (including nonprofit providers or regulated models), and estimate startup and ongoing costs both with and without facility Wi‑Fi. Legislative Counsel John Gray said the telecommunications report must also "identify implementation, operational and transition considerations," and that DOC should consult stakeholders "when practicable," including the Public Utility Commission, the Joint Fiscal Office, nonprofit providers, formerly incarcerated people, re‑entry providers and families.

DOC communications director Hy Sar told the committee that a short sample of call‑volume data (Nov. 1, 2025–Jan. 31, 2026) extrapolated to an annual figure produced an estimate "that it would have cost the department around $400,000 annually to make all of these services free." Sar cautioned that other states that removed call charges saw usage — and costs — rise, noting Massachusetts observed costs double in its first year.

On wages, DOC provided a separate estimate for raising facility pay toward a minimum‑wage equivalent. "We estimated it would be around $12 million annually in pure wages," Sar said, while adding that the figure excludes benefits, workers' compensation and other employer costs that would accompany higher pay. DOC described current facility pay as typically daily amounts that range from about $1 to $9 per day for many jobs, with a small set of licensed industrial positions paid hourly.

Committee members debated whether the wage evaluation was necessary given the large estimated cost, with some members calling the wage portion a "non‑starter" and questioning whether a study was an efficient use of staff time and taxpayer funds. Others urged an evidence‑based approach before proposing statutory changes. Gray emphasized the bill builds in two draft checkpoints — a first draft due Sept. 15 and an updated draft due Nov. 15 — so the joint legislative oversight committee can offer input before the final Dec. 1 report.

The committee also discussed operational considerations: DOC currently has a contract with a vendor identified in testimony as IC Solutions that supplies tablets at six facilities; those tablets are vendor‑owned under the contract, and DOC noted absorbing service charges could be done without replacing equipment but that capital or Wi‑Fi investments would change the calculus. Committee members asked DOC to consult other states (Massachusetts, New York, Maine) and research networks (Prison Research and Innovation Network, UVM) to avoid duplicative work.

The committee did not adopt immediate statutory changes and instead moved H.294 forward as a reporting and study requirement. The next procedural steps are the DOC drafts and stakeholder outreach scheduled in the bill's timeline; no vote on statutory mandates to change telecom pricing or wages occurred at the hearing.