As states close prisons, small towns feel effects, but experts dispute the economic ramifications

Several states are closing prisons to fight budget deficits, a gtrend that has many small communities worried about the impact if their prisons are shuttered. Many small towns have come to rely on jobs created by prisons, but as Keith Richburg of The Washington Post points out, "With most governors and legislatures grappling with crushing budget deficits, what's good for rural economies is often proving bad for states."

Richburg focuses on Norwich, N.Y., where Camp Pharsalia is one of the four prisons Gov. David Paterson has recommended shutting in a proposal that would save an estimated $26 million a year. Mayor Joseph P. Maiurano says the cost would be high for the already-struggling community: not only could it lose almost 60 families who would have to move to work in other prison, but about 40 local businesses would lose procurement funds. Inmate work also helps approximately 50 local organizations. And that's not even counting the indirect effect the prison has on the community. Some worry that without the large mail volume provided by the prison, the post office would close tool. "I thought we were trying to save jobs," said Paul Lashway, a Camp Pharsalia prison guard and steward for the local prison officers' union. "Here, they're trying to take 'em."

Others say that towns overestimate the economic boost offered by prisons. Gregory Hooks, a sociologist who has studied the economics of prisons, says inmate labor reduces the number of low-paying manual jobs, makes the community less attractive for tourism and other industries, and creates a limited number of long-term jobs, making the community dependent on the prison. "If you look at the poorest counties, the impact is negative," he said. "If you put a prison in a struggling county, they get worse, not better." (Read more)