Money/Financial Interests

Willacy County Local Gov't bonds downgraded to junk, county and city left to plug gaping budget holes

Last month, February 25th, an uprising over negligence, poor sanitation, and lack of medical care occurred at the “Tent City” criminal alien requirement (CAR) prison in Willacy County. Following the uprising, Management and Training Corporation (MTC) lost its contract with the Bureau of Prisons (BOP) and fired the nearly 400 employees that worked there. All of the 2,400 prisoners were transferred to other facilities around the country.

Although MTC is investigating the uprising, there are no immediate plans to reopen the facility. The damage, loss of the BOP contract, and the layoffs are piling up on top of the county's $63 million debt from the building of the facility.

All this has caused the Willacy County Local Government Corp. bonds to be downgraded to junk status by the S&P. The already struggling county will be left to fill the gaps in its budget, and will not be able to afford some of its planned expenditures — including a new hurricane shelter.

The model of MTC and other private prison companies is to find small, struggling towns and counties like Willacy and Raymondsville and promise them economic recovery. The aftermath of the Willacy uprising is one more example of how they do not deliver on their promises, and if anything goes wrong, the companies bail — leaving the vulnerable community to fend for itself.

The GEO Group acquires LCS Corrections, expanding their reach in Texas

The GEO Group is set to acquire a smaller corrections corporation, LCS Corrections. The merger could cost GEO up to $350 million dollars—borrowed from their $700 million revolving line of credit—and will add eight new facilities, and 6,500 new beds to GEO’s existing 79,000 bed capacity.

GEO is looking forward to an estimated $75-80 million extra in annual revenue. On LCS's end, the deal will bail them out of nearly $302 million in debt. The deal will reportedly be finalized by the end of this February. 

A Louisiana based company, LCS, while small in comparison, is no stranger to GEO-sized gaffes and scandals. LCS has a long history of not taking proper care of the people in their facilities, racking up a number of wrongful death and corruption suits. Most recently, a former LCS warden was indicted for attempting to bribe a Justice of the Peace in Texas.

The acquisition will expand GEO Group's reach in Texas, where LCS Corrections currently operates the Brooks County Detention Center, the East Hildago Detention Center, and the Coastal Bend Detention Center. 

Top Texas Private Prison Stories of 2014 - #2 - Karnes County votes to expand GEO’s troubled family detention camp

Almost as soon as it opened in August, the Karnes Family Detention Center was the subject of controversy.

First, immigrant rights advocates rallied around Sara and her 7-year-old daughter Nayely when word got out that the GEO Group was denying the girl medical treatment for a life-treatening brain cancer and that Immigration and Customs Enforcement (ICE) was refusing to release them. Calls demanding their released flooded the facility for two days.  Once reporters started calling, officials at the facility finally released Sara and Nayely. 

Nayely went on to get treatment at Dell Children's Hospital in Austin before she and her mother moved to be with family in the U.S. 

Then in October, news broke again of problems at the facility. The Mexican American Legal Defense and Education Fund (MALDEF), along with Immigration Rights and Civil Rights Clinics at the University of Texas Law School, Human Rights First, and the Law Office of Javier N. Maldonado, filed a complaint with the Department of Homeland Security (DHS) and ICE demanding the immediate investigation of and swift response to widespread allegations of sexual abuse and harassment at the detention center in Karnes City.

According to the complaint, guards removed female detainees from their cells late in the late evening and early morning hours for the purpose of engaging in sexual acts in various parts of the facility, and attempted to cover up these actions.

The MALDEF release also says that "although this unlawful conduct was reported to Karnes Center personnel, to date, no reasonable actions have been taken to stop or prevent this abuse, or to prevent its escalation."

But that wasn't the end of the controversy. In November and December, the Karnes County Commissioners Court faced wide-spread public opposition to a proposal before them to approve GEO's plans to expand the facility. Several public meetings were packed as the Commissioners weighed the proposal. 

Though the Court would eventually vote 3-2 in favor of expansion, one commissioner who voted "no" was particularly upset over threats made by GEO. Commissioner Pete Jauer voted against the expansion in part because GEO Group said that they would sue the county if they didn't vote in GEO's favor. "I still don't like to live under the threat hanging over my head with their right to sue us if they're good neighbors,” Jauer told KSAT. 

The family detention center is now poised to expand to 1,200 beds and cribs in the New Year, which will also double GEO's profits on the facility. 

Top Texas Private Prison Stories of 2014 - #3 - Empty Bill Clayton facility drives Littlefield to desperation

The city of Littlefield tried a number of times to fill the empty private prison that has been draining revenue from the tiny West Texas town of Littlefield for years.  

The first opportunity came when news broke this summer of Central American children showing up at the U.S. border seeking asylum. Officials in the City of Littlefield asked Immigration and Customs Enforcement (ICE) to send some of the families and children to their empty private prison, hoping it would be the end of a years-long debacle that started when the for-profit private prison came to town.

Littlefield City Manager Mike Arismendez told KCBD in Lubbock that a contract with ICE could mean having the facility up and running soon to detain the women and children seeking refuge at the border. 

“It would actually be a revenue stream to be able to offset the debt we have on the facility,” Arismendez said.

The idea to house refugee families at Bill Clayton gained bipartisan agreement in Littlefield, with the support of both U.S. Rep. Randy Neugebauer, R-Lubbock, and Neal Marchbanks, who was his Democratic opponent in the November general election.

It sounds bad to put [children] in a prison, but that’s about all we can do," Marchbanks said. 

But the contract with ICE was not to be, and went to Karnes County and the City of Dilley instead. 

Then, in August came news that Littlefield may have been pitching the facility to a private company from California to incarcerate people convicted of sex crimes at Bill Clayton. It was unclear whether the City was attempting to win a contract from the state of Texas or the state of California, but California does ship nearly 9,000 prisoners to out-of-state private prisons — all of which are operated by Corrections Corporation of America. 

Neither of these plans worked out, because in October news broke that the town was seeking a civil commitment contract with Correct Care Solutions. Correct Care Solutions, formerly known as GEO Care, is a spin-off corporation of GEO Group, the same corporation that operated the facility until 2009. Had this been approved, the facility would have housed approximately 200 individuals convicted of multiple violent sexual offenses — but who have already completed their prison sentences. 

As of now, it seems that the town has not found anyone to fill the facility and it will likely continue to cost local taxpayers millions. 

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