The Case For Private Prisons

Source: Steve Owen, Senior Director of Public Affairs for CCA, Politico, February 28, 2014

…I also want to address the issue of minimum-occupancy guarantees. Fewer than half of our contracts have them, and those that do contain explicit provisions allowing our government partners to terminate the agreement in a short period of time if the capacity is no longer needed. The idea that somehow our partners are locked into space they aren’t using is grounded more in politics than in fact. … Where we can and do make a difference is in being an available tool for governments, providing them critical flexibility to meet their changing needs, while offering inmates services that can help turn their lives around.
Related:

The Private Prison Racket
Source: Matt Stroud, Politico, February 24, 2014

Companies that manage prisons on our behalf have abysmal records. So why do we keep giving them business? …

… As inmate populations have soared over the last 30 years, private prisons have emerged as an appealing solution to cash-starved states. Privately run prisons are cheaper and can be set up much faster than those run by the government. Nearly a tenth of all U.S. prisoners are housed in private prisons, as are almost two-thirds of immigrants in detention centers—and the companies that run them have cashed in. CCA, the oldest and largest modern private prison company, took over its first facility in 1983. Now it’s a Wall Street darling with a market cap of nearly $3.8 billion. Similarly, GEO Group, the second largest private-prison operator, last week reported $1.52 billion in revenue for 2013, its most ever and more than a hundredfold increase since the company went public ten years ago.

But while privatizing prisons may appear at first glance like yet another example of how the free market beats the public sector, one need only look at CCA’s record in Idaho—which recently cancelled its contract with CCA—to wonder whether outsourcing this particular government function is such a good idea. ….