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Burnt Orange Report covers Littlefield private jail debacle

Former Texas Prison Bid'ness blogger Nick Hudson has a new post

over at the Burnt Orange Report ("For-Profit Lock-Up Leaves Littlefield Taxpayers With Texas-sized Headache," February 8) on the Bill Clayton Detention Center.  Here's an excerpt from Nick's piece:

"For the past three years, the small West Texas town of Littlefield has had to come up with $65,000 a month to service a loan on an empty prison it never needed. To avoid defaulting on its prison loan, Littlefield has laid off workers, cut every department's budget, raised property taxes, increased fees, raided its municipal sewer and water fund, and even delayed its purchase of a new police car.

With just 6,507 residents during the 2000 census, Littlefield did not need a new prison. The city's elected officials decided to build one anyways. Littlefield issued $10 million in revenue bonds for construction of a 310-bed for-profit detention center as part of the city's economic development strategy in 1999. Revenue bonds are a special type of municipal bond that do not require voter approval, because they are backed by the expected revenue a project will generate. Littlefield's politicians built the prison believing it would pay for itself, pump money into the local economy, and expand job opportunity.

As a result of this experience, Littlefield's bond rating was downgraded to junk status, and Littlefield taxpayers were saddled with millions in debt after discovery of mismanagement by for-profit prison operator Geo Group led the Idaho Department of Corrections (IDOC) to terminate its contract and remove its prisoners in 2009. When IDOC cancelled its contract, Geo Group bailed on Littlefield by terminating its contract and laying off 74 workers."

Here's hoping that Nick continues to blog on these topics at BOR.  Nick even rounds out the post with a Molly Ivins quote that inspired this blog's name:

"You get nightmare public policy consequences, as well. What happens if you privatize prisons is that you have a large industry with a vested interest in building ever-more prisons. The result is even more idiocy, like the three-strikes law and long terms for small-time drug possession."

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