CCA

Corrections Corporation of America just got bigger in Texas

On October 29, 2015, Corrections Corporation of America (CCA) sealed a $157.5 million deal on a major expansion with its acquistion of Avalon Correctional Services, Inc., a private community corrections company.

Now the nation's oldest and largest for-profit prison corporation will own or operate seven community correctional facilities in Texas: Austin Residential Reentry, Austin Transitional Center, Corpus Christi Transitional Center, Dallas Transitional Center, El Paso Multi-Use Facility, El Paso Transitional Center, and Fort Worth Transitional Center.

The acquistion adds 3,157 re-entry beds in Texas and is expected to boost revenue by $35-$45 million.  We'll be updating our map to note that the former Avalon facilities are now operated by CCA. 

TX highlights from Corrections Corporation of America's 3rd quarter earnings announcement

On November 5, 2015, Corrections Corporation of America (CCA) executives announced their 3rd quarter earnings results, including updates on the company's business in Texas. Check out the latest Texas updates from CCA below. You can find the full transcript here.

  • In October 2015, CCA closed the deal on the acquisition of Avalon Correctional Services, Inc. (Avalon), a for-profit community corrections company. As a result of the deal, CCA now owns or operates 17 re-entry facilities around the country, totaling 4,365 beds. Of the facilities acquired from Avalon, seven are located in Texas — a significant expansion of the company's control of private residential re-entry beds in the state. 
  • CCA hoping for contract renewal at the 1,400 bed Eden Detention Center under Federal Bureau of Prisons (BOP) CAR-16 procurement. Announcement anticipated 2017.
  • After a federal judge ruled that family detention violates the 1997 Flores Agreement, CCA currently awaits outcome of appeal process. In the meantime, in order to comply with the federal ruling, the South Texas Family Residential Center in Dilley, TX must operate as a "short term processing center" resulting in a reduction of the average length of stay for immigrant families at the facility. However, CCA is hopeful, stating: "... our government partner [ICE] continues to highlight the need for this facility and praises the high quality services and the open, safe and appropriate environment we provide to our residents at the facility."

 

CCA’s sneaky attempt to stay in Dallas for the next 40 years

Last month, Dallas County Commissioners had a tough decision on their hands. After CCA was  expelled in 2013 with the closure of Dawson State Jail in downtown Dallas, the private prison company swooped in to take over a contract that could keep them in town for the next 40 years.

 

Last year, Dallas County entered into a contract with Lifestyles Management of Avalon Correctional Services to lease ten acres of land and build a 300-bed halfway house. CCA is now taking that contract over in spite of serious concerns raised by Dallas leaders. According to the Dallas Morning News, Commissioner John Wiley Price was “concerned about CCA’s record of prison abuse, riots and poor employee pay.” Unfortunately, Price also felt the county had no way to block it.

 

The decision was on the agenda at the Dallas County Commissioners meeting on Oct. 20th, but commissioners postponed the vote until Nov. 3rd to further research the deal. In testimony to the commissioners, local advocate, Josh Gravens, expressed concern about the well-being of halfway house residents. Knowing CCA’s history, he questioned whether the company is more interested in helping former inmates or turning a profit. Unfortunately, Dallas County commissioners felt they had no choice, and approved the lease take-over.

 

In a letter responding to advocates concerns, Commissioner Price revealed how CCA’s tactics backed them into a corner. According to Price, the Dallas County Commissioners, “have no legal means to stop [the contract]” and he encouraged the community to, “let us join in acknowledging the need being filled and lend our voices to the chorus calling on CCA to do better.” His response left many questions unanswered.


Although county commissioners approved the lease, local advocates worked with members of the commission to insert important safeguards into the contract. CCA will be required to provide transportation for residents of the halfway house, CCA cannot expand the facility to more than the originally proposed 300 beds, and CCA is prohibited from using the leased property as anything but a halfway house. Although these provisions are considered a win, close monitoring of CCA’s lease will be required.

Small Arizona town profits from family detention in Dilley

On August 5th, in the midst of the legal battle concerning the fate of immigrant families currently locked up awaiting their asylum hearings, News 4 Tucson investigators shined a spotlight on how a small Arizona town is cashing in on the detention of immigrant women and children in Dilley, TX.CCA's Family Detention Camp in Dilley, TXCCA's Family Detention Camp in Dilley, TX

The report broke down the agreement between the City of Eloy, AZ, Immigration and Customs Enforcement (ICE), and Corrections Corporation of America (CCA). 

After the surge of Central American immigrants arrived at the Texas border last year, CCA rushed to build the South Texas Family Residential Center in Dilley, TX. According to ICE spokesperson, Adelina Pruneda, 

"The contracting process for the Dilley facility was necessarily accelerated in response to the 2014 humanitarian crisis of families entering through the Texas Rio Grande Valley from Central America.  To accelerate the lengthy contracting process, ICE modified an existing contract with the City of Eloy, Arizona, to operate the Dilley facility. Corrections Corporations of America (CCA) has been contracted by the City of Eloy to provide day-to-day operation of the residential facility."

There was no bidding process and the city of Eloy gets fifty cents per bed per day to be the “fiscal agent”, amounting to around $438,000. 

Meanwhile, at ICE’s Phoenix office, activists held a protest calling for justice for immigrant detainees who have died in ICE custody at the Eloy Detention Center. 

Syndicate content