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September 2009

Grayson County's Decision to Privatize Goes to Public Vote

Last Monday, Grayson County commissioners came to the decision that they will put the hotly debated subject of whether to build a new jail or renovate the existing downtown jail to a vote by the people. The motion calling for a vote by the people passed with a four to one margin. Commissioner Short voted against the motion because he felt the "wording was too loose," and he "had little time to look over related documents" ("$34 Million Bond to Build or Renovate Grayson County Jail Will Go Before Voters;" KTEN).

County Judge, Drue Bynum

Precinct 1 Commissioner, Johnny Waldrip

Precinct 2 Commissioner, David Whitlock

Precinct 3 Commissioner, Jackie Crisp

Precinct 4 Commissioner, C.E. "Gene" Short


The vote will happen next November, and voters will see the following proposition on the ballot: "The issuance of $34,000,000 of Grayson County tax bonds for constructing, improving, renovating, equipping and acquiring land for county jail purposes and the levying of a tax payment thereof" ("Jail Bond Stirs More Controversy;" KTEN).

The original intention of the vote was to determine whether or not the county jail should be privately or publically operated. However, the "loose" wording in the proposition says nothing about these options, and merely declares that the county will have $34 million "for county jail purposes." What these purposes are, exactly, have not yet been laid out for the public. Additionally, there is no guarantee that the vote's passing will keep a private company from operating the facility in the future. All that has been guaranteed is that 750 beds will be added -- either to the downtown jail or to a new structure which will assumedly be privately run. 

"Many residents, county and city leaders, including Sherman's Mayor Bill Magers, have questioned if the county needs a jail that large, and believe a smaller facility will do. [County Judge] Bynum has consistently said the 750 bed figure comes from approval by the Texas Jail Commission over the projected needs for the county in the next two decades" ("$34 Million Bond to Build or Renovate Grayson County Jail Will Go Before Voters;" KTEN).

"I think it speaks for itself," said Judge Drue Bynum. "We've bent over backwards. This is a tough, tough proposition and endeavor we're taking. Sometimes when people say one thing and have to put their money where their mouth is, obviously, you get a different reaction and we saw that today..." Grayson County resident Tony Beaverson has been an outspoken critic of the court and it's decision to precede with the private route. He told KTEN he was encouraged when he heard the court was taking the issue to the voters, but not when he learned the details. "The people will vote on a bond issue with no substance, no particulars behind it," said Tony Beaverson. "[The Court is saying] just give us a blank check and with that blank check they can still do what they originally planed to do." From now until November, the court is still going to precede with the private option. Monday morning they signed off a number of proposals with Southwest Correctional. Bynum says they are doing that, so in case the bond fails, they'll be ready to move forward with the private option because something has to be done quickly ("Jail Bond Stirs More Controversy;" KTEN).

The vote appears to be a move by the Commissioners to give the appearance of choice to the citizens of Grayson County, but the wording, as it stands now, does not protect the county jail from privatization either now or in the future. Additionally, there is no precise plan for what the money will be spent on. On the same day as the vote was declared, the County moved ahead in negotiations with Southwest Correctional, because no matter which way the vote goes, there is a potential for privatization. Whether the vote passes and the County spends the money on "county jail purposes," which could include renovations to the downtown jail or a new facility (without a guarantee that either the renovated downtown jail or the new facility will not be privatized), or the vote fails and Southwest Correctional constructs their own facility, the private option has already won before the vote is conducted. Until the Commissioners change the wording in the proposition, or scrap it all and start over with a clearer plan, it seems as though the citizens have no choice but the private choice, with the commissioners selling out the democratic process in a faustian pact for wealth.


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CCA stock gets favorable outlook despite bad press; New stock ticker at TPB

Corrections Corporation of America (NYSE: CXW)'s stock is getting favorable review from stock analysts despite a string of seemingly bad news, according to a story in the Tennessean ("Analysts give CCA an upbeat outlook: Stock price doubles amid abuse reports," September 1),

Despite state budget crunches, reductions in beds at jails and controversy surrounding at least two detention centers, analysts and criminal justice experts say Nashville-based Corrections Corporation of America's financial forecast remains strong.

The story goes on to detail what would appear to be a host of bad news for CCA, including the allegations of abuse of Hawaii women at a Kentucky prison and the recent changes at the notorious T. Don Hutto detention center in Taylor, TX.

Those risks are real as CCA is embroiled in a federal lawsuit in Kentucky stemming from rape allegations at the Otter Creek Correctional Center in Wheelwright, Ky. An accompanying investigation involves 23 female inmates, including seven from Hawaii, who say they were sexually assaulted. Hawaii officials have said they are removing inmates from the CCA facility. CCA has asked for the lawsuit to be dismissed on procedural grounds.

Meanwhile, CCA's T. Don Hutto facility, which garnered national attention after reports of questionable treatment of immigrant families, will be converted to a female detention center, said company spokeswoman Louise Grant. "If there are any allegations, we rapidly move to take action," Grant said.

In another story ("Private prison firm to give back pay to guards," Kansas City Star, August 31), it has become public record, thanks to a legal intervention by our friends over at Prison Legal News, that CCA agreed in February to pay $7 million to employees to settle a unclaimed pay lawsuit by prison employees.

Nashville-based CCA is one of the three private prison corporations with publicly traded stock on the New York Stock Exchange.  The others are the Boca Raton, Florida-based GEO Group (NYSE: GGI) and Houston's Cornell Companies (NYSE: CRN). You can now follow the fate of the private prison corporations' stock in the stock ticker on the left hand sidebar of the Texas Prison Bid'ness website. 

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