Money/Financial Interests

TX Voters Approve Prison Expansion

Texas voters approved prison expansion this week as Proposition 4 passed among the state's various constitutional amendments. Despite opposition to the initiative, including from Grits for Breakfast, voters approved prison construction by a margin of 58% to 42%.

While Prop. 4 included other measures like funding state parks and a new facility for the mentally ill, the measure also obligates Texas taxpayers to fund the construction of three new prison units, the largest expansion since the 1990s.

We previously covered the expansion authorized by elected officials during the 80th Legislature. The budget that state policymakers passed in May authorized general revenue funding for new prison construction of nearly 4,000 beds. And while the recent vote authorizes general obligation bonds to fund new construction, correctional officials must get approval from the Legislative Budget Board before the building begins.

We will continue to monitor the developments of the expansion and let you readers know if private prison companies will operate any of these new beds.

Previous Coverage on the 80th Legislature:

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

Who Benefits from Immigration "Zero Tolerance"

I've been interested in the issue of criminal prosecution of border-crossers since Grassroots Leadership, the organization I work for, issued a report on the subject called Ground Zero: The Laredo Superjail and the No Action Alternative (PDF).

Then, we found that the spike in criminal prosecutions of first-time border-crossers was rapidly increasing the need for U.S. Marshals bed space in South Texas, and particularly the Laredo district. Now, Laredo has gone to a "zero tolerance" policy where every border-crosser will be criminally prosecuted, instead of processed in immigration court and quickly deported. The policy is modeled after a policy in the Del Rio sector. The policy may expand to the Rio Grande Valley next.

Who are the major beneficiaries of this policy? As Scott Henson at Grits for Breakfast points out, the impacts of tighter border security, while possibly decreasing the number of crossings, can be deceiving. Without meaningful immigration reform, such policies appear to cause two phenomena:

  1. undocumented immigrants already working here are not going back for holidays, instead choosing to stay in the US for longer periods of time
  2. drug and human smuggling cartels are gaining strength along the border.

A third impact, as described by Forrest Wilder over at the Texas Observer blog is a drastic increase in the need for prison bed space. From Wilder's post,

In a nutshell, that means the agency will try to throw every single immigrant they catch into jail. Doing so will require yet more detention centers, jails, and prisons. Zero tolerance likely won’t stop in Laredo. Border Patrol assistant chief Ramon Rivera was quoted in the Houston Chronicle as saying, “We’re hoping it goes nationwide.” The courts in Laredo are already swamped.

Public defenders I talked to two years ago for a story said it was all they could do to provide a basic legal defense for their clients. The courts then were corral-like, with dozens of defendants coming before the magistrate on a daily basis. Laredo had to build a new 1,500-bed detention center to hold them all.

Guess who benefits from that? Yup, the private prison companies. In Del Rio, GEO will benefit from a recently-completed expansion the troubled Val Verde Correctional Center. In Laredo, GEO is set to benefit from a contract to operate the 1,500-bed U.S. Marshals "superjail," a project that has been increasingly controversial. And, in the Valley? Well, maybe Willacy County wants another private prison?

The policy question should be, does spending hundreds of millions of dollars to lock up non-violent border crossers make sense if it doesn't decrease the number of undocumented immigrants and may be empowering the smuggling cartels?

Of course, that doesn't ensure successful political grandstanding like "Lock up the illegals! Zero tolerance!" does. But maybe it's time to look past the political sloganeering, and try something new.

MTC Prison Populations Growing, Partially Off Texas Expansion

Management and Training Corporation, a private prison coPhoto of "Tent City"Photo of "Tent City"rporation operating several prisons in Texas, has posted "tremendous growth" according to company statement posted online last month.

Part of that growth is due to the expansion of the Willacy County "tent city" detention center in Raymondville. According to the statement,

The Willacy County Texas Commissioners Court approved the IGSA with the Department of Homeland Security for a 1086-bed expansion of the Willacy ICE facility. The targeted start-up for that project is January 2008.

The statement doesn't mention that Willacy County went another $50 million in debt to fund this expansion. That debt, added to the county's already staggering debt from previous prison projects, means the county is $8,700 in debt for every person residing in Willacy County.

The statement also doesn't mention the numerous cases of maggots found in prisoners' food or the protests and prayers held outside the prison.

Another protest walk to the detention center is scheduled for later this week: From the Texas Civil Rights Review,

Raymondville Walk II. October 26-27. Friday and Saturday. From the Harlingen Travel Center to Raymondville, the seat of the corruption ridden Willacy County Commissioners Court.

The MTC statement also says the company is planning to profit off of the expansion of the company's East Texas Intermediate Sanction Facility, which currently holds 300 parole offenders. According to the company,

Also in May, MTC completed construction of the 1160 bed East Texas ISF facility. The new construction added 860 beds. MTC is negotiating to fill up these additional beds with more ISF inmates or parolees.

We'll keep you updated on whether recent hearings on private prison operations and oversight will affect whether this MTC prison will be filled in the near future.

GEO Group Stock Slides on Texas Inquiries; CCA and Cornell Continue to Grow

The GEO Group's stock continued to slide on Friday on concerns that the scandal and ultimate withdrawal of juvenile detainees from the company's Coke County detention center in Bronte, Texas might endanger to other contracts the company has in Texas. According to the Associated Press:

Shares of Geo Group Inc. dropped Friday on concerns that it may lose more contracts in Texas, while shares of other private prison operators rose.

The Texas Youth Commission canceled a contract with Geo Group Tuesday, following an audit that said conditions at the Coke County Juvenile Justice Center were unsafe and unsanitary. The center was the largest private juvenile prison in Texas, and brought Geo Group about $2 million in revenue per quarter.

On Friday, AvondalePartners analyst Kevin Campbell said Texas state legislators are considering a review of Geo's other contracts in the state.

The stock dropped $2.08, or 7 percent, to $27.76.

It's better news for CCA which has seen their stock prices grow in recent days, despite Williamson County possibly terminating the contract to operate the notorious T. Don Hutto detention center in Taylor this coming week. Again from the AP:

Corrections Corp. of America said it increased a contract with the state of California, and will provide housing for up to 7,772 inmates. It previously agreed to house 5,670 inmates. Shares rose $1.54, or 6.1 percent, to $26.85.

Cornell "stock rose $1.13, or 4.5 percent, to $26.19, and reached an annual high of $26.21."

You can always see the latest financial info for GEO group at: http://finance.google.com/finance?q=geo+group&hl=en&aq=t 

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