With the Texas legislative session underway, Texas Prison Bid’ness is shining the spotlight on five of the top private prison lobbyists in our state. As we’ve covered before, GEO Group, CCA, CEC, and MTC pay hundreds of thousands of dollars every year for lobbying services and campaign contributions for state and federal legislators. Here are five men and women who profit the most from peddling private prisons, jails, and detention centers in Texas:
1. LIONEL AGUIRRE
Leo is no stranger to the Texas Prison Bid’ness blog. He’s been earning top dollar as a GEO Group lawyer for years; his $200,000+ contracts with GEO are some of the fattest in the state. He reported a $100,000-$150,000 salary in 2011 and $50,000-$100,000 in 2012.
Aguirre was married to the late Lena Guerrero, a three-term state representative and the first Latina chair of the powerful Texas Railroad Commission, the agency in charge of regulating the oil and gas industry. Lionel himself was the executive of the state comptroller’s office before moving into the private sector.
2. MICHAEL TOOMEY
Last year, CCA paid Toomey $50,000-$100,000 to lobby for them in the Texas state government. He’s earned himself a lot of press as one of Rick Perry’s inner circle, including articles in the New York Times, the Huffington Post, and Mother Jones. Between 2008 and 2011, Toomey’s clients won $2 billion in state government contracts, according to a study by the NYT and the Texas Tribune.
3. FRANK R. SANTOS
Santos, the founder of Santos Alliances, calls himself the top Hispanic lobbyist in Texas, and was named the #3 Lobbyist in the State by the San Antonio Express-News in 2006. Santos is the chairman of the Board of Directors for the Senate Hispanic Research Council; the chief national consultant and strategist for the National Hispanic Caucus of State Legislators. He is also one of GEO Group’s top paid lobbyists in Texas, earning $50,000-$100,000 in both 2011 and 2012. GEO Group operates seven detention centers and twenty prisons in Texas.
4. LARA LANERI KEEL
Ranked as the 2011 Top Female Hired-Gun Lobbyist in the state by Capitol Inside, Keel took in $50,000-$100,000 from Corrections Corporation of America in both 2011 and 2012. Keel is a member of the powerful Texas Lobby Group and director of the Texas Conservative Coalition Research Institute. She’s married to John Keel, the State Auditor since 2004.
5. DEAN McWILLIAMS
Co-founder of McWilliams Governmental Affairs Consultants, McWilliams has earned a spot as a top grossing lobbyist in this state; he held a $50,000-$100,000 contract with Community Education Centers (CEC) in 2011 and 2012. On his website, Dean boasts of his close ties to the government, having served on the Legislative Budget Board Task Force on Health Care Reform and the Lieutenant Governor’s Task Force on Prison Overcrowding.
Last month, the Christian Broadcasting Network published an article that covered serious concerns with the for-profit prison industry. While the issues CBN raises are nothing new to regular Texas Prison Bid’ness readers, we are excited to see that the diversity of groups raising these concerns continues to grow. Here’s an excerpt:
Critics complain that private prisons cut corners on salaries, guard training, inmate medical care, and facility maintenance to add to their bottom lines. "The model as a whole has not had a happy history," Dr. Fran Buntman, a criminologist at George Washington University, said.
In her opinion, for-profit companies should not be in the business of locking up criminals.
"Ethically we need to deal with the fact that when we have chosen to put people in prison, we've taken away from their liberty rights to control their own lives," Buntman said. "We as a society and the government as the institution looking after them have a responsibility to their welfare," she continued. "We cannot subcontract out that responsibility to a private agency."
For critics of the industry, their fears materialized a few months ago when CCA proposed a $250 million deal to 48 states. The company would buy state prisons and manage them if the states would guarantee a 90 percent occupancy rate. [For TPB’s coverage of this offer click here.]
"What's more important? People or money?" John Whitehead, founder of the Rutherford Institute, asked. "I'm not saying corporations are evil, but corporations exist for one reason, to make money, maximum profit," he continued. "That's okay if you're making widgets or toothpaste, but when you're dealing with people and you're making money off of people -- you're starting to treat people like they're toothpaste and you're making money off of them and I think that's way we're headed.
"We're de-personalizing people in this country and I think that we're heading to a country where people are going to be treated like they're products," he said.
To make matters worse for the for-profit prison industry, this is not the first time this year that CBN affiliated individuals raised issues that could negatively impact the industry’s profits. In March, CBN founder Pat Robertson came out in favor of legalizing marijuana. How could this harm the for-profit prison industry? Well, approximately 46% of drug prosecutions (858,408 in 2009) are for marijuana – and that adds up to a lot of prison beds! And, the for-profit prison industry has lobbied for draconian drug laws that rely on incarceration rather than evidence-based solutions such as treatment programs.
How can the for-profit prison industry both maximize shareholder profit and ensure public safety, human rights, and fiscal responsibility? As the industry’s actions indicate, the answer is – they can’t! We hope that CBN continues to highlight this clear conflict of interest.
Corrections Corporation of America’s (CCA) letter offering to purchase state and local prisons/jails in return for a 20-year deal and 90% guaranteed occupancy rate (probably making the hotel lobby very jealous) continues to gather press. Last week, an AP story (Corrections firm offers states cash for prisons, Greg Bluestein, Associated Press) about the facility was picked up by a number of newspapers around the country.
In defense of the deal, CCA continues to point to its “successful” purchase of the Lake Erie Correctional Institution in Ohio. Did CCA think no one would check to verify this claim? Unfortunately for CCA, the ACLU of Ohio did. Quoting Mark Twain, they wrote "’[t]here are three kinds of lies: lies, damned lies and statistics.’ A recent letter sent out by Corrections Corporation of America (CCA) to 48 governors offering to buy state prisons included a little of each.”
Here are some highlights from the ACLU of Ohio’s blog:
· “While CCA claims it will save Ohioans $3 million per year, a recent report analyzing the state's contract shows that taxpayers will actually lose money over the next 20 years. Of course, this is not earth-shattering news, as other fiscal analyses in Ohio and Arizona have produced similar results.”
· “CCA also leads readers to believe there was no drama behind the transition to private ownership, but the people of Conneaut may disagree. As CCA took the reins of the Lake Erie facility, Conneaut city officials were informed that it would be the duty of local police officers to investigate crimes at the private prison. Typically, the Ohio State Highway Patrol (OSHP) handles all investigations at state prisons, but private properties are under the jurisdiction of local police forces. This could cost the city of Conneaut taxpayer dollars it just doesn't have.”
· “CCA also points out that 93 percent of the previous staff from the Lake Erie facility was retained in the ownership transfer — the implication being that governors shouldn't worry about privatization because most state corrections officers will be hired back. What it does not explain is that Lake Erie has been a privately operated facility for over a decade. … Certainly, if the facility had employed state corrections officers, many of those workers could not afford to continue working there. It's no secret that private prisons pay employees far less than state workers and provide few benefits, leaving doubt that privatization of a state facility would be as ‘seamless’ as CCA describes in its letter.”
On the bright side, I imagine CCA’s management and shareholders made out quite well. Stay tuned to Texas Prison Bid’ness for more on this story.
Last week, a broad coalition, including the ACLU and The Sentencing Project, urged state governors to reject Corrections Corporation of America’s (CCA) offer to purchase state and local jails. As Texas Prison Bid'ness noted in its coverage of CCA’s offer a few weeks ago, this is a horrible deal for Texas. Here are some excerpts from a letter sent by a broad coalition of worker and human rights organizations:
“We understand that Harley Lappin, Chief Corrections Officer at Corrections Corporation of America (CCA), recently sent a letter to nearly every state announcing the Corrections Investment Initiative – the corporation’s plan to spend up to $250 million buying prisons from state, local, and federal government entities, and then managing the facilities. The undersigned coalition urges you to decline this dangerous and costly invitation.
The letter from Mr. Lappin states that CCA is only interested in buying prisons if the state selling the prison agrees to pay CCA to operate the prison for 20 years – at minimum. Mr. Lappin further notes that any prison to be sold must have at least 1,000 beds, and that the state must agree to keep the prison at least 90% full. In other words, CCA would be buying not only a physical structure but a guarantee that your state will fill a large prison and continuously pay the corporation taxpayer money to operate the institution for two decades. While a prison sale might provide a short-term infusion of revenue, taxpayers in your state would be left paying for this short-term windfall until at least 2032. In short, this proposal to sell a valuable state asset is a backdoor invitation for your state to take on additional debt, while increasing CCA’s profits.
Moreover, the requirement to keep a large prison 90% full for twenty years would pose an obstacle to more serious criminal justice reform. The United States imprisons far more people – both per capita and in absolute terms – than any other nation in the world, including Russia, China, and Iran. Over the past four decades, imprisonment in the United States has increased explosively, spurred by criminal laws that impose steep sentences and curtail opportunities for probation and parole. The current incarceration rate deprives record numbers of individuals of their liberty, disproportionately affects people of color, and has at best a minimal effect on public safety. Meanwhile, the crippling cost of imprisoning increasing numbers of Americans saddles government budgets with rising debt and exacerbates the current fiscal crisis confronting states across the nation.
As this sprawling and costly system of mass incarceration damages the nation as a whole, CCA reaps lucrative benefits. As the corporation admits in SEC filings: ‘The demand for our facilities and services could be adversely affected by … leniency in conviction or parole standards and sentencing practices … .’
The selling off prisons to CCA would be a tragic mistake for your state. Mr. Lappin’s proposal is an invitation to fiscal irresponsibility, prisoner abuse, and decreased public safety. It should promptly be declined.”
The Presbyterian Criminal Justice Network sent a similar letter to governors last week as well, urging states not to hand over control of prisons to CCA.