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Monday, March 28, 2011

Ind. Gov't. - "Private Prison Promises Leave Texas Towns In Trouble" [Updated]

I heard this long (nearly 8 minute) NPR story this morning by John Burnett and thought about the parallels to Indiana, and the differences. I would consider this a must read/listen. Some quotes:

According to the Bureau of Justice Statistics, the total correctional population in the United States is declining for the first time in three decades. Among the reasons: The crime rate is falling, sentencing alternatives mean fewer felons doing hard time and states everywhere are slashing budgets.

The Texas Legislature, looking for budget cuts, is contemplating shedding 2,000 contract prison beds. Statewide, more than half of all privately operated county jail beds are empty, according to figures from the Texas Commission on Jail Standards.

"Too many times we've seen jails that have got into it and tried to make it a profitable business to make money off of it and they end up fallin' on their face," says Shannon Herklotz, assistant director of the commission.

The packages look sweet. A town gets a new detention center without costing the taxpayers anything. The private operator finances, constructs and operates an oversized facility. The contract inmates pay off the debt and generate extra revenue. * * *

Private prison companies insist their future is sunny.

A spokesman for the GEO Group declined to speak about the Littlefield prison, but he sent along a slew of press releases highlighting the company's new inmate contracts and prison expansions across the country.

Corrections Corporation of America, the nation's largest private prison operator, says the demand for its facilities remains strong, particularly for federal immigration detainees.

New Jersey-based Community Education Centers, which has been pulling out of unprofitable jails across Texas, issued a statement that "the current [jail] population fluctuation" is cyclical.

One of the places where CEC is canceling its contract is Falls County, in central Texas, where a for-profit jail addition is losing money. Now it's up to Falls County Judge Steve Sharp to hustle up jailbirds: "If somebody is out there charging $30 a day for an inmate, we need to charge $28. We really don't have a choice of not filling those beds," he said.

Another place where they're desperate for inmates is Anson, the little town north of Abilene, Texas, once famous for its no-dancing law. Today, Jones County owns a brand-new $34 million prison and an $8 million county jail, both of which sit empty. The prison developers made their money and left. Then the Texas Department of Criminal Justice reneged on a contract to fill the new prison with parole violators. The county's Public Facility Corp., which borrowed the money to build the lockups, owes $314,000 a month — with no paying inmates. They've got a year's worth of bond service payments set aside before county officials start to sweat.

"The market has changed nationwide in the last 18 months or two years. It's certainly a different picture than when we started this project. And so we're continuing to work the problem," Jones County Judge Dale Spurgin says.

[Updated] See also this entry yesterday from Sentencing Law blog.

Posted by Marcia Oddi on March 28, 2011 04:37 PM
Posted to Indiana Government