Many prisons are built in rural areas, but lately some states have had a hard time keeping them open because of budget shortfalls. Now Corrections Corporation of America, the largest for-profit prison operator in the U.S., is offering to buy prisons in 48 states "as a remedy for 'challenging corrections budgets,'" reports Chris Kirkham on the Huffington Post. In exchange, CCA wants a 20-year management contract and assurance that prisons will remain at least 90 percent full, according to a letter it sent to the 48 states.
Kirkham writes the move is a "significant shift in strategy" for the private prison industry, which has previously expanded by building its own prisons, and is a bid for more control of state prisons. Last year, to remedy budget woes, Ohio sold CCA its largest state prison (Photo by The Associated Press).
CCA says it has budgeted $250 million to buy prisons, and says the money is "a convenient option for states in need of fresh revenue streams." While the offer is a one-time opportunity for states, CCA would benefit from long-term contracts, Kirkham writes. Some people are hesitant about the benefits for states because they would have fewer options to cut ties with CCA if contract negotiations turn sour and studies have shown that promised savings from private prisons "can be illusory at best," he writes. CCA spokesman Steve Owen said state-government contracts would be "completely transparent," and added that some states require a cost savings of 5 percent or more before privatizing a prison. (Read more)
Kirkham writes the move is a "significant shift in strategy" for the private prison industry, which has previously expanded by building its own prisons, and is a bid for more control of state prisons. Last year, to remedy budget woes, Ohio sold CCA its largest state prison (Photo by The Associated Press).CCA says it has budgeted $250 million to buy prisons, and says the money is "a convenient option for states in need of fresh revenue streams." While the offer is a one-time opportunity for states, CCA would benefit from long-term contracts, Kirkham writes. Some people are hesitant about the benefits for states because they would have fewer options to cut ties with CCA if contract negotiations turn sour and studies have shown that promised savings from private prisons "can be illusory at best," he writes. CCA spokesman Steve Owen said state-government contracts would be "completely transparent," and added that some states require a cost savings of 5 percent or more before privatizing a prison. (Read more)
No comments:
Post a Comment