Centre for Criminology and Sociolegal Studies, University of Toronto: News, Research, Opinion
Tuesday, February 14, 2012
Private Prison Corporation Offers Cash In Exchange For State Prisons
A June 2005 file photo of the Lake Erie Correctional Institution in Conneaut, Ohio, which the state sold to Corrections Corporation of America last year.
As state governments wrestle with massive budget shortfalls, a Wall Street giant is offering a solution: cash in exchange for state property. Prisons, to be exact.
Corrections Corporation of America, the nation's largest operator of for-profit prisons, has sent letters recently to 48 states offering to buy up their prisons as a remedy for "challenging corrections budgets." In exchange, the company is asking for a 20-year management contract, plus an assurance that the prison would remain at least 90 percent full, according to a copy of the letter obtained by The Huffington Post.
The move reflects a significant shift in strategy for the private prison industry, which until now has expanded by building prisons of its own or managing state-controlled prisons. It also represents an unprecedented bid for more control of state prison systems.
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