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Private Prison Management Company Seeks Guaranteed 90% Occupancy From States

A private prison management company is offering to buy prisons in exchange for various considerations, including a controversial guarantee that the governments maintain a 90% occupancy rate for at least 20 years


Private Prison Management Company Seeks Guaranteed 90% Occupancy From States

A private prison management company is offering to buy prisons in exchange for various considerations, including a controversial guarantee that the governments maintain a 90% occupancy rate for at least 20 years

Nashville-based Corrections Corporation of America Offer $250 Million Dollar Proposal

A $250 million proposal from private prison management company, Corrections Corporation of America, is asking 48 states to guarantee the corporation a 90% occupancy rate for at least 20 years. The proposal comes as states are struggling to reduce bloated prison populations and tight budgets. State officials argue the program could pressure criminal justice officials to seek harsher sentences to maintain the contractually required occupancy rates. Corrections Corporation spokesman Steve Owen defended the company’s “investment initiative,” describing it as “an additional option” for cash-strapped states to consider.

Texas state Senator John Whitmire, a Houston Democrat and advocate for reducing prison populations through less costly diversion programs, disagrees with Owen. “You don’t want a prison system operating with the goal of maximizing profits,” he said. “The only thing worse is that this seeks to take advantage of some states’ troubled financial position.”

The proposal seeks to build upon a deal reached last fall in which the company purchased the 1,798-bed Lake Erie Correctional Institution from the state of Ohio for $72.7 million. Ohio officials lauded the September transaction, saying that private management of the facility would save a projected $3 million annually. Linda Janes, chief of staff for the Ohio Department of Rehabilitation and Correction, said the purchase came at time when the state was facing a $8 billion shortfall. The $72.7 million prison purchase was aimed at helping to fill a $188 million deficit within the corrections agency.

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Ohio’s deal requires the state to maintain a 90% occupancy rate, but Janes said that provision remains in effect for 18 months — not 20 years — before it can be renegotiated. As part of the deal, Ohio pays the company a monthly fee, totaling $3.8 million per year. Roger Werholtz, former Kansas secretary of corrections, said states may be tempted by the “quick infusion of cash,” but he would recommend against such a deal. “My concern would be that our state would be obligated to maintain these (occupancy) rates and subtle pressure would be applied to make sentencing laws more severe with a clear intent to drive up the population,” Werholtz said.

Do you believe the proposal puts pressure on criminal justice officials to seek harsher sentences to maintain the contractually required occupancy rate?

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  1. Hollywood

    September 17, 2012 at 2:15 am

    To think “america” have’s the audacity to spread there ideas of “democracy,frredom and capitalism” to the world. When in fact the only principle it stands for is the same one that the colonist’s left england for in the first place…greed. This is why most country’s hate and want to destroy America because of the hypocrisy it really is. This abomination of what the prison system is for is trully horrifying. There has been much said and done about GITMO with much success for a place that’s only been around for less than ten years. So let’s try and turn this same attention to America’s own prison system that is indeed a warped and twisted business instead of a facility that ONLY detains the dangerous criminal’s but also a place where some who can be rehabilitated is priority to permanently keep them out of prison for good. Instead of this revolving door that is being implemented by those who have a mandate to keep minorities locked up but also to keep getting paid to keep that door turning for a profit.

    • Ms. Miller

      December 6, 2012 at 9:11 am

      This is the type of problem that we should be up in arms about…like the folks in Egypt. It should upset every citizen that they are demanding occupancy rates…instead of trying to “rehab” the prisoners. THE RICH PEOPLE in this country are getting away with so much corruption that it is not funny. They are getting all sorts of money from the Gov’t…grants, loans, tax breaks, subsidies, etc. But yet…the RE-thug-LICANS want to cut the funds for programs that help the poor, the elderly, children, etc. Dr. King said that …”America may go to hell one day for mistreating folks…”

      Mr. Burns from “The Simpsons”…explains the ‘fiscal cliff’ and how Republicans should improve for the next election….

  2. j neal

    September 17, 2012 at 9:09 am

    Absouletly! its intent is two-fold. Financial relief for the states and tuffer sentencing guidelines. Most important,it is well known where the imprisoned are of the minority race. Keep them longer or reclycle with increased arrest. Go figure. Its simple Arithmetic. Something luke Mitt Romney want to use. Reduce the middle class by any means necessary.

  3. ana

    September 17, 2012 at 11:19 pm

    A Systematic History of Corporate Criminal Behavior and Negligence by Government to Fully Hold These Private Management Prison Companies Accountable. The Government is Unjust in it’s Prosecution of Prison Corporations and Executives when compared to Actions taken Against So Many Black Men in The Prison and Jails Industrial System…Due to Over-Reliance on Prison and Jails,as a Solution for Everything,We can’t Afford to Have a[$10billion] State Prison Budget and Hundreds of Millions Spent on Local Jails and Juvenile Halls without it Bankrupting Everything Else in Our Community…Statistics from The Pew Center on The States Revealed that in January This Year,there were More Than[1.6] Million Black People Imprisoned in The U.S. Texas Ranked Highest With a Rate of[171,249], California Followed With[161,413] and Florida With[103,915], and in Illinois There Were[45,161].”The Most Successful Educational Approach to The Negro,is Through a Religious Appeal.”We Don’t Want The World to go Out, that We Want to Exterminate The Negro Population.”This was a Tactic to Stop Blacks from Having Large Families…This was a Better Plan than The KKK. And it Worked Perfectly,Even Until Today.”The Abortion Industry is Another Form of Black Genocide,According to Documentaries,such as Maafa 21.”The 2010 Schott 50 State Report on Black Males in Public Education”Less than 50% Black Males Graduate from High School…It’s Not due to the Ability of Black Males Intellectual Abilities.”It indicates that Systemic Disparities Evident by Race,Social Class or Zip Codes are Influenced More by The Social Policies and Practices that We Put in Place to Distribute Educational Opportunities and Resources and Less by The Abilities of Black Males…This Trend Must be Reversed.

  4. Francis

    September 18, 2012 at 2:54 am

    Justice and warehousing prisoners for profit are two pairs of shoes. Nation with world wide highest prisoner rate cares for The Prison Industrial Complex. Justice is a means to this end.

  5. Rene

    September 18, 2012 at 10:42 am

    America is now a Fascist Nation, controlled by the International Banks and Corporations. It is a police State for the profit of these Criminals, it has been in the works for over a hundred years. Somehow it must be turned around, this was not what our Founders Sacrificed their fortunes and lives for. One of the first attempts to turn this around, should be to eliminate the so-called “War on Drugs”, and make marijuana legal, it is an herb, and medicine, and can be used for many other things. In order to bring the world under a slave like One World order they profit every way they can. and in order to do that they have to create all of these unconstitutional laws so they can profit themselves and their minions. Eventually money won’t matter to them, they will have it all, but power is, and has always meant everything to them, so they will have to find ways to decrease the population to a number that they can manage.


    September 18, 2012 at 12:40 pm

    There is a hold new world order taking place right before our very eyes. Organizations such as ALEC, and the like are developing State Own Incarceration, Probation, and Rehabilitation modules that if are embraced, will be a “New World Order”. From a Federalist viewpoint…… The Federalist, Republican/ Democratic Parties have been at odds since the dawn of the Constitution, even before its signing. Know this Country’s History, for its in Our best interest to Protect Our Selves from what will be development…

  7. Francis

    September 18, 2012 at 1:11 pm

    “When the state (CA) says they cant identify inmates who can be safely released from prison that is a lie” , let me add to this statement, it is simply lawmaker’s evidence of incapacity since three decades. Bottleneck of miserable, bureaucratic questionable release process begins at Board of Parole, members appointed by Governor. Joan Petersilia + et al wrote on this – obviously unable to compete The Prison Industrial Complex equipped with powerful marketing departments and well filled money pockets for ‘donations’ on all levels of relevance.

  8. sherrian

    September 18, 2012 at 6:19 pm

    It’s time for all black people to leave this country. returne to Africa . We will never be free humans here. Wake up people, lets go

  9. DaTruth

    September 18, 2012 at 10:09 pm

    prez obama just increased the prison budget by 4%, while decreases n social services abound.

  10. houston

    September 19, 2012 at 7:04 pm

    As usual it’s Obama fault….

    • pete

      September 24, 2012 at 11:03 pm

      the buck stops there !

  11. Steppenwolf

    September 20, 2012 at 2:12 am

    It’s the classic development of all capitalistic-dominated national economies (as they ALL have been, regardless of what various 20th century regimes called themselves): as corporate rule entrenches and markets become more monopolized and wealth more concentrated, the demand by the ruling elites in charge of them for ever cheap labor and more restriction of what liberty there actually is worsens.

    The US isn’t the only country where this is happening (although it’s sadly one of the leading ones in this). Over the last 35 years of neo-con medieval tyranny and austerity, prison systems are slowly moving from simply detention centers to slave labor factories. After over a century of struggle to expand democracy and raise living standards, it appears we are on a backward swing to the middle ages.

  12. Imhotep

    September 20, 2012 at 8:41 am

    I’ve worked as a counselor in sum of these prisons with a non profit and most are filled with rural rednecks working in them. They just had a scandal in Indiana were over 100 guards were busted for drug and cigarette and cell phone trafficking. Why u ask? Because of the slavish underground market controlled by the Aryan Brotherhood( 1 cigarette-5 bucks, 1000$ a carton, high prices for cell phones and the charger and drug prices are astronomical). Its very sad and what’s worse is the ratio of black men to others. Saw same stuff at female prisons with one caveat- sex is bought or used as a tool more against females and Indianaghad a huge scandal about that with CCA and others in that state. Its forced slavery and free enterprise for the powers that be…Demonic… Ptah Ra

  13. brotherscoe

    September 20, 2012 at 2:11 pm

    I worked as a Jailor and studied the criminal justice process in college. Also growing up black has given me first hand personal information on arrest practices in the hood. The average black by the time he hits pubertry, has an arrest record equal to an white man in his forties. He is coercede by the public defender, to take a plea bargain to an lesser charge or probation in lieu of going to jail. This strengthens the slanted and discriminatory arrest practices being made sgainst blacks until he finally comes up under the three strikes law, where he is imprisoned for life. Mostly in the black community the police patrols, do not reflect its people, that it serves in diversity which leads to lack of understanding on culture and language barriers. Where as you can go to white neighborhoods, who have family members on the force,friends and are on a friendly first name basis with each other. A good book to read is by Michele Alexander a prominent civil rights attorney “The New Jim Crow” the mass incarceration of the black man and people of color. It was slow reading for me
    but very educational

  14. Terry

    September 20, 2012 at 10:58 pm

    This is one of the issues that Dr. Cornell West and Mr. Smiley are trying to wake the people up about. The President would speak up on this issue if , it were a a middle class issue . We are to blind to see that people are actually profiting by creating laws that put and keep Blacks and Latinos imprisoned. Not to mention that they are Profiting BIG Time by creating beds and cells to house them in and predicting how many they will have in the next twenty years . Less Fathers, Less Brothers, Less Husbands. More disease, More Poverty, Less Power. Where are you on this issue Mr. President ?

  15. Bshane

    September 23, 2012 at 6:53 pm

    Does any rational person believe it doesn’t?

  16. PB Short

    September 24, 2012 at 2:04 pm

    Once again people, are ignorance is starting to show concerning our knowledge of the USA government…

    The state of Ohio has thirty six (36) male prisons with an average population of three thousands (3,000) inmates for a state that only has nine million (9,000,000) people…

    The state of California has thirty six (36) prisons with the same population (3,000 inmates) per prison in a state that has over twenty million (20,000,000) people…

    Former President Bill Clinton and his administration started the building of more prisons during his eight year term as President…

    The state of Ohio has been talking with various businesses since 1987 to get them to take over the state ran prison system…and during the 1990’s, it became a reality as they made sure certain state prisons became privately owned…

    The state of Ohio, like many other states, lure BIG business to their state by building some of the manufacturing plants on prisons grounds or integrated into the plants for the inmates to do much of the work for $90.00 per month…

    An example of this is Honda; in order for the state to get Honda to build a plant in Ohio, most of the Honda plants are built onto prisons eliminating jobs for people because the inmates are doing the work…

    During the 1990’s, you may have notice that most prisons are built two (2) to three (3) hours away from the nearest big city…the reason is to make sure that poor whites have jobs, government jobs guarding prisoners while the majority of these prisoners are Black…

    These are the people that you voted into office…I have found that a lot of Black people, especially women, love Bill Clinton, but do not know the harm he has caused to our race…and do not care about him being a pervert…

    The DNP & RNP do not care about of us…the only way to change the system of this country is to get more Blacks into congress…once congress become 90% Black, like it was during the 1860’s, then things will change…

    The fact that President Obama has not done anything for Blacks, will show in about 15 years from now…

    All he has to do is introduce certain new laws like:

    1) Hiring of Blacks in high-paying and high-profile positions (not just entry level) for those who are qualified…

    2) Stop law enforcement harassing of Blacks, and the legal system process of forcing Blacks to plead guilty to crimes they did not commit…

    3) Stop giving government contracts to white own businesses only, and expand it to Blacks…

    4) Get rid of the foreign businesses in Black neighborhoods…the same building that they condemned during the 1980’s are still in use today by foreigners and those building have not had any improvements made since 1979…

    5) Make government employees responsible for their actions, along with corporate criminals…

    Basically, just even the playing field…but I guess that is asking for too much…

  17. patrice

    September 24, 2012 at 4:01 pm

    It is another form of conspiracy no different than slavery.That is the reason so many black males are arrested. Now in Florida if they see you talking to a gang member and you have no record then they have a private list add your name and next time they see you talk to a gang member you are arrested.In school,if you are in first grade and have a temper tantrum the police are called to take you to juvenile. Sadness is white kids are dying from prescription drugs and blacks are entering prisons with Correction officers, and prison guards who come from families of KKK. Wake up People!!

  18. Lee

    January 14, 2013 at 7:59 pm

    Now who is asking for a Wellfare Check?

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