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Annual Privatization Report 2013

State and International Corrections Privatization Update

Subsection of Annual Privatization Report 2013: Criminal Justice and Corrections

Leonard Gilroy and Harris Kenny
May 6, 2013

» Return to Annual Privatization Report 2013: Criminal Justice and Corrections
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Arizona: In August 2012, the Arizona Department of Corrections awarded a contract for 1,000 new privately operated, medium-security prison beds to Corrections Corporation of America (CCA), ending a state pursuit of new prison capacity that began in 2009 and was scaled down significantly in scope along the way. Under the contract, CCA will deliver 500 new beds at one of its facilities in Eloy by January 2014, with the remaining 500 beds set to come on line in January 2015.1

In December 2011, ADOC cancelled a lengthy procurement dating back to 2009 (see discussion in Reason Foundation’s Annual Privatization Report 2011) for 5,000 new private prison beds after new agency inmate population projections forecast slowing growth in new inmates. ADOC subsequently issued a revised request for proposals for up to 2,000 new prison beds, ultimately receiving five bids from CCA, The GEO Group, Management & Training Corporation, LaSalle Corrections and Emerald Correctional Management. The state legislature appropriated funding in 2012 to cover the 1,000 new beds in the CCA contract, with funding for the remaining 1,000 beds to wait until population projections warrant.

In other Arizona news, ADOC released a biennial cost comparison report in December 2011 that compared the six private prison units operating under ADOC contracts with six comparable state-run prison units operated by ADOC. The report—which incorporated a range of cost and performance factors—found that:

California: As detailed in Reason Foundation’s Annual Privatization Report 2011, California Gov. Jerry Brown signed into law Assembly Bill 109 (AB109) in 2011, which instituted a set of reforms (known as “realignment”) designed to shift over 40,000 low-level, nonviolent offenders and parole violators from state prisons to local jails in order to reduce severe overcrowding in state prisons and comply with a federal directive to reduce the state prison population to a level of 137.5% of prison design capacity by June 2013 (subsequently extended to December 2013). At the time that a federal three-judge panel mandated the prison population reductions in 2006 based on constitutional concerns over inmate medical and mental health care, the in-state prison population had swelled to approximately 200% of its design capacity—over 162,000 inmates held in 33 state facilities that were designed to hold 79,858 inmates—prompting the federal intervention.

In nearly two years of implementation, the realignment plan has significantly reduced the population of California’s state prisons from approximately 143,000 prior to AB109 to approximately 119,000 by March 2013. Yet, the state is still not expected to meet the federally mandated 137.5% target—equating to 109,805 inmates—by the end of 2013. In January 2013, the Brown administration filed a motion seeking an end to the federal order and a lifting of the population caps, citing the state’s significant progress at reducing overcrowding.

At the same time, the Brown administration announced plans to phase out over four years the state’s practice of contracting with private corrections firms to house thousands of inmates in out-of-state, privately operated prisons, a strategy initiated by the previous Schwarzenegger administration in 2006 in an emergency order intended to provide a relief valve for prison overcrowding. At its peak, the state’s contract to hold inmates in prisons operated by the Corrections Corporation of America (CCA) in Arizona, Oklahoma and Mississippi totaled over 10,000 inmates, but the Brown administration has begun taking steps to reduce that number. In July 2012 the state renegotiated its contract to reduce the total number of inmates housed in out-of-state CCA facilities from up to 9,588 to an average daily population of 9,038 for the fiscal year ending in June 2013. The administration seeks to continue to fully phase out the out-of-state contracted prison population by the end of fiscal year 2016, a move the administration estimates would save the state approximately $300 million annually.3

The biggest unknown is how Brown’s goal to eliminate out-of-state prison contracting will ultimately square with the state’s compliance with the federal in-state population reduction mandate. Given that the state’s current in-state inmate population (approximately 119,000) already exceeds the federally mandated population of nearly 110,000—a 9,000 inmate difference—how the state would absorb the additional 9,000 inmates currently held in out-of-state private prisons remains an open question. As a partial solution, the state launched a procurement in March 2013 seeking 1,200 new beds in privately operated prisons based within California.

However, if the federal three-judge panel ultimately rejects the state’s request to lift the mandated population caps, then California will likely need to maintain its use of out-of-state private prisons in some capacity. In May 2012, a report issued by the California Legislative Auditors Office evaluated the state’s inmate population reduction plans and recommended the continued use of at least 2,900 out-of-state private prison beds on an ongoing basis—regardless of whether or not the federal inmate population cap is lifted—in order to minimize overall corrections costs to taxpayers.4

Florida: After a provision in the state’s 2011 budget authorizing the privatization of 29 state prisons in south Florida was found unconstitutional by a circuit court judge in September 2011, an attempt to revive the proposal in 2012 as stand-alone legislation (Senate Bill 2038) was defeated in the Florida Senate by a 21–19 vote in February 2012. The proposal—which officials estimated would save the state over $16 million annually—would have privatized nearly all correctional facilities and services within an 18-county region of south Florida, and the resulting contract(s) would have been required to include a range of over 40 performance measures that included reducing recidivism, expanding offender treatment and programming, and achieving other key rehabilitation and safety goals. In July 2012, an appellate court rejected the state’s appeal of the 2011 ruling, an anticlimactic outcome given that the original budget authority for privatization had already expired earlier that month.

In other Florida news:

Hawaii: The Hawaii Public Safety Department announced in February 2012 that it plans to bring all mainland prison inmates back to Hawaii by 2015. There are currently 1,738 Hawaii inmates in a privately operated prison in Arizona. The plan is to transition a significant number of those inmates to three new facilities, a 400-bed facility on Maui, a 300-bed facility on the Big Island and a 200-bed on Oahu, in conjunction with other reforms to the criminal justice system. It currently costs Hawaii $63.85 per inmate per day in the Arizona facility compared to $128 per inmate per day in Hawaii prisons; it is not clear what the construction or operating costs will be for the new facilities.7

Idaho: The biggest correctional story in Idaho is the continued scrutiny that both the DOC and its private partner, CCA, are facing over the Idaho Correctional Center. Several years ago there was a settlement between an Idaho inmate and a private prison operator over allegedly violent conditions at the Idaho Correctional Center. A settlement was reached between the American Civil Liberties Union (ACLU) of Idaho and the operator, CCA, that remains sealed. Last year the ACLU filed questions about whether or not CCA was complying with the settlement.8

A separate lawsuit was filed in 2012 alleging CCA “uses gangs to run (the) prison.”9 CCA argued in January 2013 that suit should be dismissed, saying the inmates failed to use the prison’s grievance system (which is required before filing a suit), and that inmates didn’t meet legal standards for specificity in their complaint.10 Attorneys representing inmates at the Idaho Correctional Center amended the lawsuit further, alleging the company is falsifying staff logs to hide understaffing. DOC Director Brent Reinke and the DOC’s deputy chief of the contract services bureau, Pat Donaldson, initially said they have seen no evidence of falsified staff reports.11 However in February upon further review Reinke formally asked the Idaho State Police to look into discrepancies in staff logs and other reports to gather more information. CCA hired an independent investigator on its own to review policies at the prison as well.12

The Idaho DOC also entered a new agreement with CCA to house up to 800 inmates at CCA’s 1,488-bed Kit Carson Correctional Center in Colorado. The two-year management contract contains four mutually-agreed one-year renewal options.13

Illinois: Legislation that would have banned privately operated detention centers in Illinois failed in May 2012. The state already prohibits outsourcing state prisons to private contractors (a law that passed in 1990), and lawmakers recently expanded the prohibition to include county and local governments. The proposed privately operated federal immigrant detention center led to heated debate in the legislature and in local communities over whether or not it should be allowed. Given the bill’s failure, the federal immigrant detention center is expected to proceed and will likely be built in Crete, Illinois.14

Louisiana: For the second year in a row, a plan proposed by Gov. Bobby Jindal involving the sale of state-run prison facilities to private corrections firms died amid legislative opposition. Jindal’s FY2013 proposed budget included the sale of the Avoyelles Correctional Center for approximately $35 million and a subsequent contract with the ultimate buyer to continue housing state inmates at the facility. Administration officials projected that the shift to private operation would save the state an estimated $210 million in operational costs over the next two decades, and the bulk of proceeds from the sale of the facility would have been deposited in the state’s budget stabilization (“rainy day”) fund.15 In addition to the proposed sale, the proposed budget also envisioned the permanent closure of two other state-run prisons.

In April 2013, the House Appropriations committee passed House Bill 850—a proposed bill authorizing the Avoyelles facility sale and subsequent outsourcing—but the bill was subsequently pulled by its sponsor after the full House voted to amend the bill to remove language authorizing the prison sale, limiting the scope of the bill to simply authorizing the state to seek bids for the potential private operation of the facility.

The Avoyelles facility was one of three state prisons the Jindal administration proposed selling in 2011 to help close a gap in FY2012 state healthcare funding, but a legislative bill authorizing the sales was defeated by the House Appropriations Committee.

Maine: In January 2012 the Maine legislature’s Criminal Justice and Public Safety Committee voted unanimously against LD 1095, which would have facilitated the construction and operation of private prisons by authorizing the Department of Corrections to transfer inmates out of state to a public or private correctional facility within the territory or possession of the United States.16 The bill was carried over from 2011.17

Michigan: In January 2013 Michigan Governor Rick Snyder signed SB-878 into law. SB-878 allows the North Lake Correctional Facility in Baldwin, Michigan’s current owner, GEO Group, or any company operating the 1,800-bed facility, to bid on Michigan DOC contracts if they result in savings of 10% or more. The law also requires the private operator to interview correctional officers who would be affected by the contract for jobs at the Baldwin facility. The North Lake Correctional Facility has been closed since 2011.18

Mississippi: The GEO Group announced in April 2012 that it would be exiting contracts for prisons in Walnut Grove in East Mississippi and in Marshall County Correctional Facility in Holly Springs. The company was under scrutiny for its operations of these facilities, primarily from the Occupational Safety and Health Administration (OSHA). According to citations issued by OSHA, GEO “knowingly failed to provide adequate staffing, fix malfunctioning cell door locks or provide training to protect employees from inmate violence including stabbings, bites and other injuries.”19 GEO could face up to $104,000 in fines from OSHA. The Mississippi DOC announced in June 2012 that it signed a 10-year, three-facility contract with Centreville, Utah-based Management & Training Corporation to replace GEO.20

Separately, as many as 300 inmates at the CCA-operated Adams County Correctional Facility, which holds nearly 2,500 illegal immigrants overall, participated in riots in May 2012 that led to the death of one guard and injury of 19 people (16 guards and three inmates). Dozens of officers were held hostage during the hours-long incident, including specially trained response teams. According to the Adams County Sheriff a gang fight set off the violence.21 However according to an FBI affidavit the riot was started by inmates angry about what they considered poor food and medical care and disrespectful guards. The affidavit emerged from a U.S. District Court in Jackson as they were resolving complaints charging inmates with rioting.22 One inmate pleaded guilty to charges related to the riot in August and another was charged with instigating and conspiring to cause the riot in October.23

New Hampshire: New Hampshire is simultaneously considering the introduction of prison privatization and a statewide ban on prison privatization. State officials are currently evaluating bids from private contractors for three potential projects: a 1,500-bed male facility, a 200-bed female facility and a third co-ed prison. Meanwhile the ban is being discussed in the legislature. New Hampshire Governor Maggie Hassan has spoken against partnering with private prison operators in the past, while remaining open to private construction of publicly owned and operated prisons. On the other hand, the state’s corrections commissioner, William Wrenn, has said that a privatization ban would be a bad idea, citing the value of retaining options and flexibility for managing the prison system.24 Last June the state hired MGT of America for $171,000 to serve as a private correctional consultant to help the state evaluate bids for up to three new facilities.25

New Jersey: In June 2012, New Jersey Governor Chris Christie ordered a stepped-up state inspection regime for the state’s system of privately operated halfway houses in the wake of a New York Times investigation that found that approximately 5,100 parolees and state inmates had escaped from these facilities since 2005, in addition to other problems including prevalent violence and drug and gang activity.26 State corrections officials and private halfway house operators disputed the Times’s findings, defending their track record in reducing recidivism and lowering the overall state prison population and noting that many of the “escapes” cited were more appropriately framed as “walkaways” that include situations in which inmates on work release were simply late in arriving back at the low-security facilities. State corrections officials also cited a significant reduction in the number of “walkaways” since 2010, as well as fines levied against the private halfway house operators in such situations. The largest halfway house operator—Community Education Centers—also released data suggesting that number of escapes paled in comparison to the overall number of inmates and parolees moving through those facilities, estimating escape rates of 0.53 % for correctional inmates and 3.3 % for parolees since 2005.27

North Carolina: The North Carolina Department of Public Safety selected a multi-year contract with BI Incorporated for more than 1,000 devices for house arrest and GPA tracking. The devices will be used to facilitate supervision of pretrial adult and juvenile offenders and individuals released on probation. BI Incorporated is a wholly owned subsidiary of The GEO Group.28

Ohio: 2012 was a challenging year for the Lake Erie Correctional Facility in its first year of transition to private operation. The former state-run prison was sold to the Corrections Corporation of America (CCA) in 2011 for $72.7 million—a first-of-its-kind sale of a prison by a state to a private corrections firm—along with a 20-year contract with CCA to continue housing state inmates there. A September 2012 audit of the prison by the Ohio Department of Rehabilitation and Correction (ODRC) found that the prison was only meeting two-thirds of state operating standards, with 47 violations related to various security, health and sanitation concerns. Problems cited include a lack of clean clothes and linens, delays in medical treatment, missing keys, inadequate fire plans, food quality and kitchen cleanliness issues, improper weapons storage and processing of contraband, and staff confusion over differences between state and CCA policies.29

CCA took responsibility for the performance lapses—disciplining employees and paying roughly $500,000 in penalties to the state—and it took immediate steps to implement a corrective action plan. A follow-up state inspection in November found that CCA had corrected 38 of the 47 identified deficiencies from the previous audit.30 The following month, the facility received accreditation from the American Correctional Association, achieving a 99% score after three days of audits.31

A separate report issued by the state’s Correctional Institution Inspection Committee—a body composed of state legislators and staff—in March 2013 found that violence and use of force in the Lake Erie prison has increased over the last three years, a timespan that straddles the CCA purchase of the prison along with its prior operation by Management & Training Corporation, another private prison operator. CCA challenged the findings, noting that the prison population in that facility had grown over that time, that gang activity had dropped since 2012, and that the company had installed new cameras and improved fencing to enhance security at the facility.32

In other Ohio news, ODRC and the Ohio Department of Youth Services launched a joint procurement in February 2013 for the potential privatization of adult and juvenile prison food services in a move expected to save the state over $16 million per year. As an example of the type of savings sought, ODRC cited Indiana, where a private food provider charges the state $1.19 per meal, compared to the $1.58 it currently costs the state under in-house operation.33

Oklahoma: Policymakers in the Oklahoma Department of Corrections opted to renew their contract for CCA’s Cimarron Correctional Facility, increasing capacity by 240 inmates bringing the total population up to 2,520. CCA’s management contract with Oklahoma has one remaining annual renewal option that would extend the contract through June 30, 2014.34

Oklahoma Corrections Department is also finding other ways to save money and improve outcomes. Spokesman Jerry Massie explained last year that the state’s private sector halfway house program is proving especially effective in recent years. Massie explained typically over 90% of halfway house inmates are employed either working regular jobs or on crews doing specialized labor for governmental entities. This high employment rate saves the department hundreds of thousands of dollars each day because halfway houses usually cost only $32 per inmate per day, versus $45 per inmate per day otherwise. All eight halfway houses in the department’s network are privately operated.35

Puerto Rico: The Puerto Rico Public-Private Partnerships Authority (PPPA) is working with the island’s Juvenile Institutions Administration (JIA) to implement its ‘Nuevo Comienzo’ partnership, which is Spanish for New Beginnings. New Beginnings is a design, build, finance and maintenance contract for a 600-youth treatment complex that’s estimated to save $4.1 million annually. These savings will be achieved in part by relying on a contract with performance-based metrics to achieve full compliance with civil cases and standards created by the American Correctional Association and by addressing facility fragmentation in Puerto Rico’s correctional system.

The Government Advisory Team for procurement includes:

Puerto Rico’s Department of Corrections and Rehabilitation also partnered with CCA, entering a two-year management contract for up to 480 male inmates to be housed in CCA’s 1,692-bed Cimarron Correctional Facility in Cushing, Oklahoma.37

Texas: Harris County staff spent over a year evaluating whether or not to privatize the county jail, however they chose to retain public operation of the jail. The county received bids from four companies and determined one of those bids, submitted by CCA, was viable for consideration. According to county officials, “The evaluation committee concluded that the potential benefit is not sufficient reason to make a change at this time.”38

Vermont: The Vermont Department of Corrections ended its contract with a public jail in Greenfield, Massachusetts in July 2012. Inmates at the jail rioted over conditions in years past, citing lack of outdoor facilities, a no-smoking policy and a ban on physical contact during family visits. Franklin County Sheriff Christopher Donelan explained to New England Public Radio that the population mix was also difficult for the jail to handle.39

Instead, the state is opting to continue to partner with CCA to house its inmates in CCA’s Lee Adjustment Center in Kentucky and Florence Correctional Center in Arizona. Vermont is adding another two years to its more than seven-year partnership with CCA, in addition to two one-year renewal options.40

Virginia: Officials in Virginia considered privatizing their civil commitment program at the 300-bed Virginia Center for Behavioral Rehabilitation in Burkeville. They ultimately rejected unsolicited bids from The GEO Group and Liberty Healthcare Corp. to operate the facility.41 The Burkeville facility detains sexually violent predators (SVPs) for treatment after their sentences are completed. Under state provision, it costs approximately $97,000 per offender each year, while the program’s funding has increased tenfold since it began in 2004.42 The bids were submitted under Virginia’s 2002 public-private partnership enabling legislation.

International

United Kingdom: In October 2012 Prime Minister David Cameron announced the expansion of the United Kingdom’s payment-by-results (PBR) prison rehabilitation scheme that was first piloted in Peterborough. The first PBR pilot was made possible by privately funded social impact bonds, which police reported led to lower incidents of reoffending. Questions remain about how scalable the program is, and specifically whether or not the metrics that are being chosen are the right ones, but early results are leading policymakers to expand the experiment.43

Reform, a British think tank, published a paper in February 2013 entitled, “The Case for Private Prisons,” that examines two decades of evidence from competition and private sector involvement in prisons. Reform found:

Reform has also conducted new research into reoffending rates by prison, which also shows superior private sector performance:

Reform’s paper was published in response to the proposed “new approach” to prisons that would effectively end whole prison contracting to private companies and roll back introducing variable local pay (instead of standardized national pay for employees) in the prison system. The government abandoned plans to outsource four prisons overall, and it will assume responsibility for the fourth prison in Wolds that has been operated by G4S since it opened in 1992.45 The government plans to instead partner with the private sector for rehabilitation and ancillary services and rely on national pay scales in conjunction with “efficiency benchmarks.” Contracting out for maintenance services is expected to yield $680 million (USD) in savings over the next six years.46

New Zealand: New Zealand’s DOC signed an innovative public-private partnership with the SecureFuture consortium (made up of Fletcher Construction, Serco, Spotless Facility, infrastructure finance company John Laing, and the publicly run Accident Compensation Corporation) for a 960-bed men’s prison at Wiri, South Auckland. The 25-year, $693 million (USD) design, build, finance, operate and maintain (DBFOM) contract includes $248 million (USD) for design and construction.47

This contract is particularly innovative because it includes financial penalties for SecureFuture if its prisoner rehabilitation programs fail to reduce recidivism by more than 10% compared to publicly run prisons. (This approach is consistent with what Reason Foundation coined as Corrections 2.0, which is being explored in the United Kingdom and the United States.) To ensure innovative outcomes, New Zealand’s DOC eschewed traditional procurement processes, and as Fiona Mules, head of PPP Programme, National Infrastructure Unit, New Zealand Treasury, explained it:

We procured it under a maximum flexibility, minimum constraints model… We went to the market with a blank sheet of paper. No standard design. No policies, procedures or operating manuals. The operator works with the consortium to determine how they want the prison to be designed to exceed current rehabilitation outcomes…

We had no interest in replicating what we were already doing. They needed to do the thinking on their side of the table… We’re trying to build models that the public sector can learn from…

If the operator meets its own goal, it can help the Department of Corrections to lift its own game. The way we calibrated it is that the operator can lose 100 per cent of its margin for average performance against the department.48

Construction began in September 2012; the facility is expected to open in 2015.

South Africa: In May 2012 South Africa’s Department of Correctional Services announced plans to award six 500- to 1,500-bed prison projects to private partners, with an additional twelve 500- to 1,500-bed prison projects being considered in the next few years. The announcement comes after four prison partnerships were cancelled in 2011.49

Other Industry News

Recently an increasing number of companies changed their legal status to a real-estate investment trust (REIT). In order to become a REIT a company must meet two requirements: Generate at least 75% of revenue from rents and other direct real-estate activities; and pay out at least 90% of company profits to shareholders as dividends. REIT status presents a unique value proposition because profits are then untaxed at the company level.50

Companies in a wide range of industries have pursued REIT status, including the correctional industry. Both CCA and The GEO Group initiated a REIT conversion. Practically speaking, REIT conversion will have little impact on the day-to-day operations of either firm, or any other correctional firm that pursues this option.

» Return to Annual Privatization Report 2013: Criminal Justice and Corrections
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Endnotes

1 Craig Harris, “Arizona private prison contract awarded to Tenn. Firm,” Arizona Republic, August 31, 2012.

2 Arizona Department of Corrections, Biennial Comparison of "Private Versus Public Provision of Services", December 2012, http://www.azcorrections.gov/ARS41_1609_01_Biennial_Comparison_Report122111_e_v.pdf (accessed February 20, 2013).

3 Don Thompson, “Calif. governor wants out-of-state inmates back,” Associated Press, January 7, 2013.

4 State of California, Legislative Analyst’s Office, The 2012–13 Budget: State Should Consider Less Costly Alternatives to CDCR Blueprint, May 16, 2012, http://lao.ca.gov/analysis/2012/crim_justice/cdcr-blueprint-051512.aspx (accessed March 11, 2013).

5 Bill Kaczor, “Group wants private prisons to rehab Fla. Inmates,” Associated Press, January 15, 2013.

6 Steve Bousquet, “Florida's work-release centers quietly going private,” Tampa Bay Times, July 2, 2012.

7 Jim Dooley, “State unveils plan for new Hawaii prisons,” Watchdog.org, February 29, 2012. http://watchdog.org/13660/state-unveils-plan-for-new-hawaii-prisons/

8 Rebecca Boone, “ACLU-Idaho Says Corrections Corporation of America May be Violating ‘Gladiator School’ Settlement,” Associated Press, November 14, 2012. http://www.huffingtonpost.com/2012/11/14/aclu-idaho-corrections-corporation-of-america-gladiator-school-_n_2133450.html

9 “Private prison company’s attorneys says Idaho inmates’ lawsuit should be tossed out,” Associated Press, January 15, 2013. http://www.oregonlive.com/pacific-northwest-news/index.ssf/2013/01/private_prison_company_says_id.html

10 Ibid.

11 Rebecca Boone, “Inmates claim private prison falsifies staff logs,” Associated Press, January 22, 2013. http://www.idahostatesman.com/2013/01/22/2422176/inmates-claim-private-prison-falsifies.html

12 Rebecca Boone, “Idaho investigates private prison,” Associated Press, February 6, 2013. http://www.idahopress.com/news/state/idaho-investigates-private-prison/article_44487e5a-701e-11e2-8544-001a4bcf887a.html

13 “CCA Awarded New Management Contract With Idaho and Expands Agreement With Oklahoma,” July 16, 2012. http://www.marketwatch.com/story/cca-awarded-new-management-contract-with-idaho-and-expands-agreement-with-oklahoma-2012-07-16

14 Chris Kirkham, “For-Profit Immigrant Detention Center Near Chicago Moves Ahead as Illinois House Vote Fails,” The Huffington Post, May 31, 2012. http://www.huffingtonpost.com/2012/05/31/for-profit-immigrant-detention-center-chicago_n_1561084.html

15 Michelle Millhollon, “Legislation paving way for prison sale advances,” The Advocate, April 19, 2012.

16 “LD 1095 Receives Unanimous Negative Vote,” January 9, 2012. ACLU Maine https://www.aclumaine.org/node/1197

17 “An Act to Facilitate the Construction and Operation of Private Prisons by Authorizing the Transport of Prisoners out of State,” March 15, 2011. Maine Legislature http://www.mainelegislature.org/legis/bills/getPDF.asp?paper=SP0328&item=1&snum=125

18 “Snyder bill may help re-open Baldwin prison,” UpNorthLive.com, January 11, 2013. http://www.upnorthlive.com/news/story.aspx?id=846698#.UPB4GKVOTdk

19 Jeff Amy, “GEO Group fined $104K, accused of allowing workers to be victims of violence at Miss. Prison,” Associated Press, June 12, 2012. http://www.therepublic.com/view/story/5bf5650bd4444491a107e514d222d29e/MS--Private-Prison-Fine

20 Ibid.

21 Holbrook Mohr, “Sheriff: Gang started prison riot in Mississippi,” Associated Press, May 21, 2012. http://hosted2.ap.org/OREUG/f7ded15e4d4846268a17b79c1c4b7cb8/Article_2012-05-21-Mississippi%20Prison%20Riot/id-4314cc5cf1da4042b28daeb1daac0be5

22 “FBI: Inmates who started Miss. Prison riot angry over what they called poor food, medical care,” Associated Press, August 13, 2012. http://www.washingtonpost.com/national/fbi-inmates-who-started-miss-prison-riot-angry-over-what-they-called-poor-food-medical-care/2012/08/13/c84091ae-e570-11e1-9739-eef99c5fb285_story.html

23 “Indictment issued against inmate for his role in private prison riot in Adams County,” Associated Press, October 12, 2012. http://www.therepublic.com/view/story/92cc915691f44e37bd9e5c75f29d0ab3/MS--Mississippi-Prison-Riot

24 Josh Rogers, “House Hears Bill to Ban Prison Privatization,” New Hampshire Public Radio, February 8, 2013. http://www.nhpr.org/post/house-hears-bill-ban-prison-privatization

25 Bob Sanders, “Exec Council to weigh extending contract with consultant on private prison beds,” New Hampshire Business Review, December 5, 2012. http://www.nhbr.com/businessnews/statenews/985911-257/exec-council-to-weigh-extending-contract-with.html

26 Sam Dolnick, “Christie Orders New Inspections of Halfway Houses,” The New York Times, June 18, 2012.

27 Sam Dolnick, “As Escapees Stream Out, a Penal Business Thrives,” The New York Times, June 16, 2012.

28 “North Carolina selects BI Incorporated for extensive GPS tracking program,” BI Incorporated Press Release, January 18, 2013. http://www.corrections.com/vendor/show_press/15825

29 Alan Johnson, “Conditions at privately-run prison 'unacceptable,' Ohio officials say,” The Columbus Dispatch, October 5, 2012.

30 Associated Press, “State finds Ohio private prison safer, cleaner,” November 16, 2012.

31 Associated Press, “Safety, security at Ohio private prison affirmed,” December 7, 2012.

32 Alan Johnson, “State report: Violence on rise at private prison,” The Columbus Dispatch, March 1, 2013.

33 Laura A. Bischoff, “State prisons look to private food vendors to save money,” Dayton Daily News, February 8, 2013.

34 “CCA Awarded New Management Contract With Idaho and Expands Agreement With Oklahoma,” July 16, 2012. http://www.marketwatch.com/story/cca-awarded-new-management-contract-with-idaho-and-expands-agreement-with-oklahoma-2012-07-16

35 Andrew Knittle, “Halfway houses ease prison overcrowding, save money,” Oklahoma Corrections Department official says,” The Oklahoman, July 15, 2012. http://newsok.com/halfway-houses-ease-prison-overcrowding-save-money-oklahoma-corrections-department-official-says/article/3692773

36 “Social Infrastructure,” Puerto Rico Public-Private Partnership Authority. http://www.p3.gov.pr/?page_id=4032&lang=en

37 “CCA Awarded New Management Contract with Puerto Rico,” Corrections Corporation of America Press Release, January 3, 2012. http://finance.yahoo.com/news/cca-awarded-management-contract-puerto-135500773.html

38 Mike Morris, “Internal review rejects idea of privatizing county jail,” Houston Chronicle, February 21, 2013. http://www.chron.com/news/houston-texas/houston/article/Internal-review-rejects-idea-of-privatizing-4298883.php

39 Henry Epp, “Vermont Ends Contract with Greenfield, MA Prison,” New England Public Radio, July 19, 2012. http://www.nepr.net/news/vermont-ends-contract-greenfield-ma-prison

40 “CCA Secures Two Year Contract with Vermont Department of Corrections,” July 26, 2011. http://www.cca.com/newsroom/news-releases/264/

41 “Va. rejects bids to privatize facility that provides post-prison treatment for sex offenders,” Associated Press, March 15, 2013. http://www.washingtonpost.com/local/virginia-rejects-proposals-to-privatize-facility-for-violent-sexual-offenders/2013/03/15/a17b58ec-8d3b-11e2-adca-74ab31da3399_story.html

42 Larry O’Dell, “Privatization of Va. Sex offender program opposed,” The Associated Press, July 30, 2012. http://hamptonroads.com/2012/07/privatization-va-sex-offender-program-opposed

43 Niki May Young, “Government to roll out payment-by-results for prisoner rehab,” Civil Society Finance, October 22, 2012. http://www.civilsociety.co.uk/finance/news/content/13602/pm_to_announce_roll-out_of_payment-by-results_for_prisoner_rehab

44 Will Tanner, “The case for private prisons,” Reform Ideas No. 2, February 2013. http://www.reform.co.uk/resources/0000/0635/Reform_Ideas_No_2_-_The_case_for_private_prisons.pdf

45 Vivienne Russell, “Government abandons plans to outsource prisons,” Public Finance, November 9, 2012. http://www.publicfinance.co.uk/news/2012/11/government-abandons-plans-to-outsource-prisons/

46 Anna Reynolds, Prison tenders produce cost savings model,” Supply Management, November 9, 2012. http://www.supplymanagement.com/news/2012/prison-tenders-produce-cost-savings-model/

47 Peter Kenter, “New Zealand pioneers P3 prison concept,” Daily Commercial News, December 7, 2012. http://dcnonl.com/article/id53127/--new-zealand-pioneers-p3-prison-concept

48 Ibid.

49 William Preston, “SA to award prisons,” Inspiratia, May 17, 2012. http://www.inspiratia.com/social-infrastructure/News/read/SA-to-award-prisons/

50 Michael Santoli, “Changing Their Stripes,” Barron’s, May 19, 2012. http://online.barrons.com/article/SB50001424053111904571704577406161684395748.html


Leonard Gilroy is Director of Government Reform

Harris Kenny is Policy Analyst


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