California's overcrowded, constitutionally suspect prisons aren't just incarcerating criminals. They're confining our state's ability to fix our fiscal house, better serve taxpayers and provide crucial services for law-abiding, working families and their children. To balance its books, the state has slashed funding for schools, health care and services that protect children and seniors.

With the state cutting funding to the bone for these and other vital programs, Californians deserve a more effective, less costly corrections system.

Three years ago, University of California, Irvine, professor of criminology Joan Petersilia pointed to the bleak statistic that of the 115,000 parolees California released each year, some 70 percent were back in jail within 24 months. Worse yet, she said about 10 percent of these prisoners will repeatedly return – six or more times over a seven-year period. This year, the release rate is up to 134,000 parolees, with little sign of any change in recidivism.

Beyond parole practices, the principal reason for recidivism is what Petersilia calls an inexcusable failure to maximize opportunities for prisoners to adapt to life on the outside. We need to correct that failure.

And employers can play a vital role, something I've seen firsthand.

Take, for instance, Tri-CED Community Recycling of Union City, near my own hometown of Hayward. It was started 30 years ago by Richard Valle, a Vietnam veteran who had seen far too many of his own friends end up in the streets or in jail. Tri-CED is a business dedicated to supporting workers who need a little extra help to make it.

One who benefited is a former inmate named Dora. Nearly a decade ago, Dora was on a prison bus headed to a year and a half of incarceration. Another person on that bus, hearing that Dora was from Union City, told her she should check out Tri-CED when she got out. Dora did; Valle hired her, and ever since, she's been a full-time driver of a Tri-CED recycling truck. Valle calls her a "stellar employee" and is proud to say Dora's buying her first home.

Paul, who served 12 years at Pelican Bay State Prison, also came across Tri-CED upon his release. He's been there for nine years as a lead foreman, and Valle calls him one of his most trusted employees. The stable job has enabled Paul to get married and provide for his wife and three children.

Tri-CED has thrived on such loyal, hardworking employees who want to improve their lives; they, in turn, get a supportive work environment, adult education classes, health counseling and other life skills needed to succeed.

The company offers a real escape from recidivism and creates jobs in one of the state's hottest economic sectors: green technologies. That has enabled Tri-CED to qualify for clean-tech funding, including federal stimulus dollars that will allow the firm to hire 24 more employees.

Tri-CED's business model exemplifies the kind of innovation that always has distinguished California. And Valle and Tri-CED are now receiving well-deserved recognition. Valle recently was honored with a James Irvine Foundation Leadership Award, a $125,000 prize for leaders who have pioneered practical solutions to tackle successfully some of California's critical challenges.

Other business owners should learn from Valle's example. But employers can't shoulder the burden alone. Lawmakers can help by creating incentives for businesses to hire and support formerly incarcerated Californians.

Initiatives such as the one developed by Valle and Tri-CED help strengthen public safety, reduce recidivism and preserve state funds for bedrock public services such as education and infrastructure renewal. The greater their use, the greater the benefit to the state treasury and California's communities.

Bill Lockyer is the California state treasurer.