Corrections officials are preparing for an influx in requests for inmate labor, as state departments look for ways to get work done cheaper during a worsening budget crunch.

Already, the state is in the midst of a $1 million contract to purchase 13 sets of playground equipment and build them using largely inmate labor.

The Department of Education is also in talks for a second contract to put in 32 playgrounds constructed by inmates.

"Just with the inmate labor alone, this is a huge cost savings," said Matthew Kaneshiro, administrator for the Hawai'i Correctional Industries division, which is under the state Department of Public Safety.

The total labor cost savings for the projects was not immediately available.

Kaneshiro said he expects an increase in requests for inmate labor, as state agencies reeling from cuts and the threat of layoffs try to stretch their dollars.

"We know, whenever the economy goes down, our program goes up," he said.

Inmate labor programs have been around for decades, and have often been met with mixed reactions by the public. Some worry about the safety of putting inmates in communities for hours at a time or of having them near schools and residential areas.

Yesterday, four inmates worked on a playground at Kauluwela Elementary School in Kalihi as part of the $1 million contract with the Department of Education.

Their work site was surrounded in black dust screens, and had only one entrance and exit point. Inmates wore blue jump suits that said, "Hawaii's Industries," and were supervised by an unarmed public safety official. They also worked alongside contractors who were helping to assemble the playground so it met safety specifications.

At one point, students peeked inside to see progress on their first playground.

Kaneshiro emphasized that inmates are supervised at all times while in the community.

"Security for Hawai'i Correctional Industries is No. 1," Kaneshiro said.

There are currently 104 Hawai'i inmates employed on HCI work lines statewide.

MORE CONTRACTS

In preparation for more requests for work, the state is trying to increase the number of inmates in the program. Kaneshiro is also working to get the word out about the program to state departments that might not know about it.

He said he actually saw a dip in contracts last fiscal year as departments worked feverishly to make needed cuts. But he said he expects to bounce back this fiscal year because agencies are looking for deals.

Hawai'i Correctional Industries, which has about 40 employees, operates on contracts alone. It doesn't get any state general funds.

In fiscal year 2009, the agency got about $5.7 million from contracts. That's a decrease of nearly $1 million from fiscal year 2008, when the agency secured $6.6 million in contracts.

Of the total in contracts for fiscal year 2008, $119,000 went to inmate labor, while $2 million went to agency employee salaries and about $3.9 million paid for raw materials and supplies and services.

HCI mainly contracts with county, state, federal and nonprofit agencies. It can work with private companies, but only if using inmates on furlough.

All inmates in the program are screened to make sure they don't pose a safety threat.

No sex offenders are allowed on projects at schools, and all the working inmates have gone through different programs and classes to ensure they are not violent, Kaneshiro said. Those programs can include anger management, substance abuse and other treatment.

They get 50 cents an hour for their work, which can include construction jobs, cutting grass along state highways, maintenance, sewing and printing. Inmates who work for private companies must be paid at least minimum wage.

GIVING BACK

At the Kauluwela work site yesterday morning, the four inmates were busy adding a walking bridge on the playground and connecting other pieces.

Inmate Todd Mitsuyoshi, 42, said he's been on the work line for five months.

"I just like to get out and basically give back to the community," he said. "I like doing this for the kids."

At one point, kindergartners at the school were able to take a peek into the work site. The school doesn't have another playground, said kindergarten teacher Kelli Shirota, so there's more than a little excitement about the new playground.

"I like to slide and stuff," said 5-year-old Ari Chan, as she looked at the playground with wide eyes. "We're going to have a lot of fun."

Inmates were scheduled to finish the playground at Kauluwela yesterday.