Money/Financial Interests

And the Door Revolves; GEO Hires ex-TDCJ Official to Oversee Regional Operations

The GEO Group has hired former Texas Department of Criminal Justice head Gary Johnson to head its operations in Texas, Oklahoma, and Louisiana, according to a story by Mike Ward in an entry on the Austin American Statesman's blog.

Gary Johnson, the former head of Texas’ prison system, has been hired as a regional vice president for a Florida-based operator of private prisons that became mired in controversy two months ago over conditions at a West Texas youth lockup.

Geo Group Inc. announced that Johnson will head its central region, which includes Texas, Oklahoma and Louisiana. The territory includes the ill-fated Coke County Juvenile Justice Center, which made headlines in October after Texas Youth Commission officials yanked more than 100 youths from the lockup after alleging squalid conditions.

The revolving door between state agencies and private prison corporations is nothing new. Many of the problems at Coke County came while TYC monitoring of the facility was being performed by former GEO employees, who, apparently, weren't reporting many of the problems at the facility. Of course, Johnson was never much of a critic of the private prison industry. According to Ward:

While Johnson was executive director, the agency signed five-year contracts with Geo to house state prisoners at several lockups. He will oversee the operation of those lockups in his new job at Geo.

Who says public sector employment doesn't pay off? Mr. Johnson, you've got quite the task in front of you... We'll be paying close attention.

CivicGenics will Manage Troubled Dickens County Correctional Center

The Associated Press recently reported that CivicGenics will assume management of the Dickens County Correctional Center. Previously, the GEO Group managed this prison where Idaho prisoner Scot Noble Payne comitted suicide. In regards to GEO's managment over the facility, Idaho prison officals have said that the county jail was:

... the worst prison they'd seen, citing what they called an abusive warden, the lack of treatment programs and squalid conditions they said may have contributed to the suicide of inmate Scot Noble Payne, who was held for months in a solitary cell.

In the story, Idaho officials admit they were not maintaining proper oversight of prisoners housed in facilities out of state. Yet, the state still continues to contract with GEO in Texas -- soon officials will finalize a contract with the private prison corporation to incarcerate 40 prisoners in the Val Verde Correctional Facility near the Mexican border.

According to Dickens County officials, CivicGenics will manage the prison better:

GEO "thought they were too good," Sheldon Parsons, a Dickens County commissioner, told Idaho officials. "They're used to running bigger facilities. That just kind of didn't fit into our program. Civigenics will definitely fit."

CivicGenics executives state they will be able to incarcerate about 150 Idaho prisoners at the facility starting in January 2008.

As the Idaho prisoners continue to be held in Texas facilities, time will tell if oversight of these county correctional facilties improves. A recent Senate Criminal Justice committee hearing raised several concerns over the lack of oversight of these facilities. We will post new information as it develops.

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...


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