Executive Report   By NORA NEWMAN JURGENS

Governor proposes to construct three new prisons

AS the prison population in Illinois continues to grow, leading to over-crowding and an increase in inmate violence, Gov. James R. Thompson announced April 3 a proposal to build three new prisons in the next three years.

A recent report by the Department of Corrections (DOC) called for a reduction of 3,858 beds in the rated capacity of the state's 18-prison system. The rated capacity indicates how many inmates can be "packed" into prisons, not how many can be safely housed, the report said. Total prison population in March was 18,901. The present system is designed to house no more than 13,762.

The state's four oldest prisons, Stateville, Menard, Pontiac and Joliet, are also the most crowded. The majority of the reduced capacity, 3,155 beds, should be in those four prisons, according to the DOC report.

More than 65 percent of the current prison population have committed murder, Class X or Class 1 crimes, the report said, with most of them housed at the oldest, already overcrowded penitentiaries. The monthly average of serious disciplinary reports at the four prisons has increased by more than 200 a month from 1983 to 1986, according to department director Michael P. Lane.

The new prisons would be medium-security facilities housing 750 inmates and each employing about 400 people. The total cost of the three prisons is set at $125 million. Gov. Thompson did not include plans for new prisons in his fiscal 1987 budget presented to the General Assembly March 5. Democratic leaders in the legislature indicated they would keep an "open mind" about the need for new prisons, which will be included as part of Thompson's capital development programs. The projects will most likely be paid for through the sale of bonds, although the administration will be looking at the possibility of leasing privately built facilities.

Cities that lost out the last time a new prison was built in 1982 will be given a chance to renew their bids. Hearings will be held in Canton, Flora, Macomb, Mount Sterling, Streator and East St. Louis. Two sites will be announced in May, with the third to be chosen later this year.

May 1986/Illinois Issues/35

Governor creates new Department of the Lottery

THE Illinois State Lottery will soon have its own department under Executive Order No. 2 issued by Gov. James R. Thompson March 27, creating the Department of the Lottery. This would bring to 26 the number of executive departments under the Administrative Code. Thompson also named Rebecca Paul, current superintendent of the State Lottery, to serve as director.

The lottery, administered under the Department of Revenue since its creation 10 years ago, has become the state's fourth largest revenue source. In fiscal 1985, more than $1.2 billion in tickets were sold, netting about $500 million. The money is earmarked for the state's Common School Fund.

Thompson's order is effective July 1, but if either legislative chamber rejects it within 60 days of the issue date, it is "dead," according to provisions of the state Constitution. Legislation creating the new department will be introduced in addition to the executive order, said Susan Mogerman, an administrative spokeswoman. In addition, Paul's appointment as director will have to be approved by the Senate. The new salary is set at $55,000.

All current lottery employees, about 300 people working in offices around the state, would be transferred to the new department. The department would have a $401 million budget, $350 million of which is used for payment of prizes.

The five-member Lottery Control Board would continue to deal with complaints of lottery regulation violations by lottery agents, and act as advisor to the new director.

Five-year decline in teenage pregnancies

THE number of teenage pregnancies has been declining, according to the latest statistics issued by the Thompson administration. Illinois teenagers gave birth to 23,289 babies in 1984, compared to 29,800 births to teens in 1979.

Thompson credits the decline to the statewide "Parents Too Soon" program, initiated in 1983. The program funds community-based programs in an effort to prevent teen pregnancies, as well as to reduce the health risks of adolescent mothers and help teen parents.

Statistics for 1984 showed six down-state counts having higher teen pregnancy rates than Chicago. These include: Gallatin (26.4 percent); Pulaski (24.5); Alexander (23.8); Hardin (21.0); Massac (20.0) and St. Clair (19.4). In Chicago, 19.1 percent of all births were to teens.

The Parents Too Soon program has become the focus of national attention as other states look for ways to reduce teen pregnancy rates. The program was the first of its kind and has been used as a model in the development of a federally funded policy guide recently issued by the Council of State Policy and Planning Agencies.

Insurance company fined

A CHICAGO insurance company which failed to comply with the state's insurance cancellation and nonrenewal laws has been fined $15,000. The Department of Insurance issued the fines February 21 against the lllionois Union Insurance Company, a commercial lines carrier, following numerous complaints from terminated agents.

The department reported that the company did not specify reasons for cancellations and nonrenewals in notices to policyholders, as well as nonrenewals of policies written by terminated agents. In addition to paying the fine, the company will also be required to revise the content of its nonrenewal letter to comply with the Illinois Insurance Code and to discontinue its practice of extending policy periods to get around advance notice requirements for nonrenewal.

Faced with a so-called crisis in the liability insurance market, department director John E. Washburn warned insurance companies "that we will indeed investigate reports of improper activities and follow through with the appropriate regulatory penalties."

Groundwater hearing

THE Illinois Pollution Control Board is holding a series of public hearings in April, May and June to tap the public response to proposals for protecting groundwater quality in the state. The Illinois Environmental Protection Agency (IEPA) and the Department of Energy and Natural Resources (DENR) were mandated in 1983 to issue reports about the state's groundwater quality and to make recommendations for its protection.

The DENR completed its study, called "An Assessment of Ground-Water Quality and Hazardous Substances in Illinois with Recommendations for a Statewide Monitoring Strategy," and the IEPA has begun a groundwater monitoring program. It presented its protection plan to the governor, the General Assembly and the Pollution Control Board January 31.

The DENR study and the IEPA proposal will be the focus of the public hearings. The Pollution Control Board will evaluate any testimony and report its findings following the hearings.

36/May 1986/Illinois Issues