Reason Foundation

Reason Foundation

Oklahoma Corrections Study Merits Scrutiny

Leonard Gilroy
October 21, 2009, 3:02am

Barbara Hoberock at the Tulsa World reports today that the Oklahoma Department of Corrections has done an internal study which they claim shows that the state has similar or lower costs per prison bed than private prisons. Unfortunately, having scanned the ODOC's website, they haven't made a copy of the report available so that we can review their methodology, so at this point I think it's best to take the study with a grain of salt, because the reported findings raise more questions than answers. First, some context from Hoberock's article:
The findings were released to the state Board of Corrections last week. [Department of Corrections Director Justin] Jones said the department is required to report rates to the board each year. "We are either less than the private per diems or extremely competitive," he said.

The cost to house an inmate in a public, medium-security bed is $44.35 a day, compared with $49 for a bed in a Corrections Corporation of America lockup and $44.83 for a bed in a GEO prison, Corrections Department figures show.

Jones said the public rates were calculated before the agency's most recent budget cuts, so they do not include recent cuts in contracts with private prisons.

The daily cost to house an inmate in a maximum-security state prison is $63.70, compared with $64.50 in a CCA prison, the department says.

Some red flags here:

In fact, this is what makes this statement so ironic:

However, Jones said the evaluation is deceiving because the state system also supports an agricultural operation and has different inmate health care costs than private prisons do. The public system does not transfer inmates with severe health problems to the private prisons, he said. "We still have costs they don't have," he said.

And the private prisons have costs the state doesn't have, like taxes for one. Again, a key reason why a true value for money analysis would look at all of these factors, shared costs and unique costs alike, to try to get to an accurate public-private cost comparison.

I'm not the only one who's skeptical at this point:

Sen. Anthony Sykes, R-Moore, the chairman of the Senate Appropriations Subcommittee on Public Safety and Judiciary, said the analysis was based on assumptions and did not appear to take into account factors that cannot be ignored. He said the state has a long history of maintaining a balance between public and private prisons.

"It appears that DOC has used this analysis to justify having private prisons and halfway houses bear the entirety of the 5 percent cut ordered by the Office of State Finance and that no cuts are being imposed on public facilities," Sykes said. "At the very least, this action by DOC places the state in potential breach of contract."

I don't want to speculate on motivation, but knowing that the study is being released at the same time as the state is requiring the private prisons to bear the entire burden of agency budget cuts demands serious scrutiny of the ODOC analysis. The implication is that Oklahoma has achieved something no other state (or nation) hasâ??maximum efficiency in their public prisons, to the point that they should be spared any cuts at the same time that many other state services are.

Let's get realâ??most states are in a fiscal crisis. No one should be off limits when it comes time to spread the cuts around state government. Whenever some agency claims that it should be given special treatment, it should generally be interpreted as a self-interested attempt to protect its budget. Ask most state agencies and they'll tell you they too have one thing or another that deserves protection from spending cuts. If policymakers listened to all of them, significant spending reductions in state government would be few and far between.

Reason Foundation's Annual Privatization Report 2009
Reason Foundation's Privatization Research and Commentary

Leonard Gilroy is Senior Managing Director, Pension Integrity Project &
Director of Government Reform

Print This