Private Prison Lobby

Why o why o why o did CCA think it could make stuff up in Ohio

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. 

Broad Coalition Urges States to Reject CCA's Offer to Purchase State Prisons

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. 

Bad News From Liberty County

Last week we wrote about Liberty County’s battle to reign in its excessive county jail budget (A line in the sand in Liberty County).  Its solution makes sense – don’t lock up individuals accused of low-level, non-violent crimes.  The community would save millions of dollars as long as it stood up to the for-profit prison industry’s attempts to undercut the savings by raising the rate to house inmates. 

On Monday, according to The Cleveland Advocate ("County extends jail contract for another 60 days," 2/7/12), the county commissioners court voted to extend the for-profit jail contract for another 60 days.  County Judge Craig McNair said the 60 day extension will give the commissioners more time to gather information.  Liberty County Precinct 1 Commissioner Todd Fontenot agrees that it is time for the extensions to stop.  As the The Cleveland Advocate reported, “Fontenot said that he believes that the best decision would be to have the sheriff directly operate the county jail. … Fontenot reasoned that the private company marks up the cost of operations to generate a profit and that if the county took the facility over, they would not have to pay the increased cost but use it for the needed personnel.” 

Actively trying to undermine smart on crime reforms is nothing new to the for-profit prison industry.  Liberty County now has the opportunity to send a clear signal to the for-profit prisons industry – taxpayers care about the safety and well-being of their communities and have no interest in ensuring profit for the for-profit prison industry. 

A line in the sand in Liberty County

Jail dollarJail dollarWith the goal of lowering the operating costs of the Liberty County Jail, 253rd District Court Judge Chap B. Cain initiated a plan to reduce the number of non-violent individuals housed in the jail.  This sounds like a great plan, one where the county saves millions, public safety is not harmed, and non-violent individuals are not locked up.  Everyone wins … right?  Wrong! 

As The Cleveland Advocate reported ("County’s jail inmate population down, but companies now asking for more money per inmate," 1/21/12), for-profit prison companies have reacted by telling the community that they will not let the county’s smart on crime approach undermine the profitability of the county jail.   As 75th District Court Judge Mark Morefield, who supports the inmate reduction plan, stated: “’One bid said that if the inmate population goes below 200, the cost per inmate goes from $63 to $68 per day. If we work really hard to decrease the inmate population, the cost will go up to $70 per day, … [t]hey are taking all the incentive out of it.’”  With profit as their main goal, it comes as no surprise that for-profit prison companies have actively lobbied against some criminal justice reforms and for the continuation of the failed “tough on crime” approach to criminal justice.  Liberty County is just one more casualty in the for-profit prison companies’ race to maximize their bottom line. 

But, Liberty County may not bow down to the for-profit prison industry.  According to The Cleveland Advocate, Judge Morefield believes the county can manage its jail.  For Texas Prison Bid’ness readers in Liberty County – this is your opportunity to take a stand by supporting the effort to kick the for-profit prison companies out of Liberty County!

 

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