JOB OPPORTUNITIES TASK FORCE

Advocating better skills, jobs, and incomes

TO: Hon. Dereck E. Davis, Chair; Hon. Sheila E. Hixson, Chair; and members of the House Economic Matters Committee and House Ways and Means Committee

FROM: Kevin Griffin Moreno, Senior Policy Advocate

DATE:             March 16, 2006

The Job Opportunities Task Force (JOTF) is an independent, nonprofit organization that promotes better jobs, skills-training, and wages for low-skill low-wage workers and job seekers. One population of particular concern to JOTF is Marylanders who are returning to the mainstream workforce from incarceration. We support HB 1391 as a means of promoting the employment of ex-offenders who are trying to turn their lives around.

Of the more than 24,000 inmates incarcerated in Maryland’s prisons, nearly all of them will return to communities across the state. Approximately 75 percent of the state’s inmates are high school dropouts, and 20 percent were at or below the third grade reading level when they entered prison. Given that many employers are reluctant to hire individuals with criminal records, this combination of factors poses a major barrier to the full reentry of ex-offenders into society.

HB 1391 would help bridge these gaps by establishing a pilot program which encourages employers to hire ex-offenders. The program would consist of federal fidelity bonds and a state tax credit that would benefit employers willing to hire from this population.

• A Federal Fidelity Bond is a business insurance policy that protects an employer in case of any loss of money or property (up to $5,000 for a 6-month period) due to employee dishonesty. The Federal Bonding program is sponsored by the U.S. Department of Labor.
• The state tax credit provides employers who hire eligible ex-offenders with tax abatement of 30 percent of up to the first $6,000 of the wages paid during the first year of employment, and 20 percent of up to the first $6,000 of the wages paid during the second year of employment.

The pilot program would be administered by the Maryland Department of Labor, Licensing, and Regulation (DLLR) in partnership with local public agencies and nonprofit providers. If properly implemented, the program would link the efforts of the state, local career center networks, community-based organizations, and businesses in the employment of ex-offenders. By requiring progress reports from DLLR, the legislature could ensure that the program is effective and has positive outcomes for all stakeholders.

Employers in Baltimore City, Prince George’s County, and other jurisdictions across the state are beginning to recognize the value of hiring Marylanders who have paid their debt to society and are ready to work. HB 1391 would make it easier for businesses to give job seekers that second chance. We therefore respectfully urge a favorable report.