Money/Financial Interests

Interim Charges Focus on Corrections Funding

This week, Speaker of the House Tom Craddick (R-Midland) released the interim charges for several House Committees including Appropriations and Corrections. These charges have implications for public and private capacity in the state's prison system.

During the 80th Legislative Session a significant amount of funding was appropriated to corrections that not only included building 3 new prisons but also monies for substance abuse treatment and community alternative programs. At this time the interim charges that have been released include:

  1. Monitor and examine the implementation of funding appropriated during the 80th Legislature to the Texas Youth Commission, Juvenile Probation Commission, Texas Department of Criminal Justice (TDCJ), and Correctional Managed Health are Committee.
  2. Assess the relationship between mental illness and criminal behavior and offer reforms needed to address the proliferation of mental illness in the adult and juvenile criminal justice systems. This review should include an examination of data sharing between criminal justice and health and human services agencies, proper screening, assessments, treatment, discharge planning, post-release supervision, and community services.
  3. Review and research the availability, coordination, efficiency, and allocation of substance abuse treatment resources for probationers, pretrial defendants, people in the custody of the TDCJ, and parolees. This review should include methods to reduce and improve current assessments, training, and referring protocols and the identification of any barriers that may be impeding all of the above.
  4. Consider new strategies for meeting prisoner reentry challenges in Texas, including the evaluation of programs with documented success. This review should include the availability of housing and occupational barriers.
  5. Provide a comprehensive analysis and study of the Texas state jail system, including original intent for use, sentencing guidelines, and effectiveness. Develop suggestions for changes and improvements in the state jail system.
  6. Study policies and procedures related to illegal immigration and border security of the TDCJ, county probation departments, and local and county jail facilities, and make recommendations to improve coordination with international, federal, state, and local authorities.

We anxiously await to hear what other committees will be asked to review over the Interim in the House and the Senate. At a recent Senate Criminal Justice Committee hearing, Senator Juan "Chuy" Hinojosa asked for the committee's interim charges to address private prisons.

We will continue to monitor these developments and post information about Legislative committees that consider these issues.

Previous coverage of the 80th Legislature:

  1. TX Voters Approve Prison Expansion
  2. More Prison Beds on the Way
  3. Legislative Update
  4. 80th Legislative Session: Mixed Results on Private Prisons



Burnet County Private Jail Fight

Last Monday, I drove out to Burnet, about an hour outside of Austin in the Texas hill country, to witness a community forum on a proposed 587-bed private jail and detention center. The meeting was called by Burnet County Commissioners and the recently-created Public Facilities Corporation - a quasi-governmental agency which has the ability to float revenue bonds to pay for prison construction - after an apparent groundswell of local opposition to a private jail initiative.

Private jail opposition huge!

After fighting Austin traffic and paying for a toll road, I arrived for the 7:00 p.m. meeting around 6:30 to find the old courthouse nearly full. Opponents of the jail, who seem to be very well-organized, told me they'd mailed out 7,000 fliers and placed by an ad on the local radio station announcing the meeting. I was pleased to see that audience members were being handed Considering a Private Jail, Prison or Detention Center, a pamphlet developed by Grassroots Leadership and South Texans Opposing Private Prisons, as well as a chart explaining the jail's proposed financing.

By 7:00, the courtroom was spilling well into the halls with at least 500 people, nearly all seemingly opposed to the private jail scheme. The plan, similar to those increasingly common in many Texas counties, is to finance the construction of a new county jail by floating revenue bonds (through the Public Facilities Corporation) and paying back the bonds by profiting from the importation of federal U.S. Marshals or Immigration and Customs Enforcement detainees.

Opponents of the jail were allowed to speak first. Five Burnet citizens laid out the case against the jail, including the pitfalls of private jail companies, potential dangers in floating debt for private jail expansion (perhaps county officials should look into Willacy County where every resident is currently a staggering $8,700 in debt due to prison expansion), and a general sense that shipping inmates into Burnet County wasn't necessary or good for the county.

Who stands to benefit?

Moderating the meeting were Russell Rau and Ira Cotler, representatives from C3 Corrections, a private jail financing and developing company who has apparently been hired by the county to put the financing deal together. Private prison watchers will recognize Cotler's name as the former CFO and Executive Vice President of Correctional Services Corporation, a company bought by the GEO Group in 2005. According to C3's website, the company:

offers its clients the most unique and innovative consulting solutions offered in the corrections field today. For the first time in the corrections industry, one organization has compiled some of the industry's leading experts to offer specialized consulting services across the full spectrum of solutions to include: Project Development, Finance, Operational Support, Accounting/Budgeting and Support Services.

Also supposedly involved in the Burnet County deal are Municipal Capital Market Groups, a bond underwriter who has underwritten many private prison bonds in Texas, and construction company Hale Mills. Hale Mills was one of three companies potentially involved in the Willacy County bribery scandal back in 2005. Three south Texas county commissioners plead guilty to receiving bribes, but no company officials were ever charged with a crime.

The prison would be operated by Southwestern Correctional, a Louisiana company represented at the meeting by Clay McConnel and associated with LaSalle Management Company. McConnel spoke at the Monday meeting and claimed that his companies operate 6 Louisiana prisons and one here in Texas. I'm still trying to track down which facilities those are.

What's next for Burnet County?

KXAN reported that the County Commission is moving ahead with plans to study the proposed jail site. Clearly, Burnet County residents have sent a message the jail plan is controversial, if not downright unpopular. Grits for Breakfast, per usual, has good advice on the topic as well:

Building a jail so much bigger than the county needs makes the county reliant on the current jail and prison boom continuing ad infinitum, or at least over the next 15-20 years while they're making bond payments. Maybe it will. So far other counties making that assumption have been lucky. But personally I don't believe the current growth in Texas' incarceration rate is sustainable, either pragmatically, socially or economically, so Burnet County: If 10 years down the line you find yourself making large debt payments on a half-empty jail, don't say nobody warned you. It's a bad idea, and not just for NIMBY reasons.

We'll keep you updated on the jail and opposition from Burnet County.

Update: I just saw reporter Catherine Hosman's story on the meeting in the Burnet Bulletin. Check it out for more details from the meeting...


JFA Report Offers Ways to Reduce the Prison Population

The JFA Institute released a new report this month entitled Unlocking America: How to Reduce America's Prison Population. The report analyzes why the prison system has grown so significantly in recent years and offers specific recommendations for how states and the federal government can reduce the number of people incarcerated. The report's recommendations include:

  1. Reducing time served in prison;
  2. Eliminate the use of prison for parole or probation technical violators;
  3. Reduce the length of parole and probation supervision periods; and
  4. Decriminalize “victimless” crimes, particularly those related to drug use and abuse.

Texas legislators and voters recently approved the construction of three new prison units to meet the need of the state's growing prison population. The report offers a good overview of how the prison population can be controlled and ultimately reduced without new expansion.

The report also cites the financial interests that undermine efforts of sentencing reform that can lead to the reduction in the prison population. In the concluding remarks, the authors state:

We also recognize that as the system of imprisonment has grown, so too has the investment and the vested interests that support its operations and growth. In order to reverse the current trends we will have to find a way to re-allocate the money, political influence, and jobs that the current system provides. This will not be easy and it will take many years to wean us off the excessive use of imprisonment.

Related posts include:

  1. TX Voters Approve Prison Expansion
  2. More Prison Beds on the Way
  3. Who's Lobbying for Texas Private Prisons?
  4. Legislative Update
  5. 80th Legislative Session: Mixed Results on Private Prisons

Laredo City Council Rejects GEO's "Donation"

We reported on Monday that the Webb County Commissioner's court had rejected a $250,000 "donation" from the GEO Group after the transaction was criticized as "dirty" by Laredoans and in the excellent monthly publication LareDOS.

Word from Laredo is that the Laredo City Council has followed suit. The Council quitely rejected a similar $250,000 donation after South Texans Opposing Private Prisons organizer Ricardo Soliz and Laredo lawyer Ron Rodriguez, who has represented several families of inmates abused in GEO prisons, spoke against the donation. According to the Laredo Morning Times:

City Council turned down the $250,000 donation from Geo after returning from executive session to discuss a separate item. City Council took the same action the Commissioners Court took regarding the $250,000 donation from Geo Group.

Several hours before council made the decision, several Laredoans strongly expressed opposition to not only the city accepting the donation but also to the city and county allowing the facility to be built in Laredo.

"This is not a donation - this is a payment," said Ronald Rodriguez, an attorney representing two families whose loved ones died in a prison run by the Geo Group.

"This transaction smells. You know what the money's for," Rodriguez added, alluding to it being a buyoff to receive the clearance to build.

Also, check out MEG's column on the subject in the new issue of LareDOS which carries the story on page 6 (careful, it's a big PDF!). We'll keep you updated on further developments from Laredo.


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