How For Profit Prisons Ensure Steady Income During An Era Of Lower Crime
September 27, 2013
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11:34Now PlayingHow For Profit Prisons Ensure Steady Income During An Era Of Lower Crime
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as posted by the channel"In 2012, Corrections Corporation of America (CCA), the largest for-profit private prison company in the country, sent a letter to 48 state governors offering to buy their public prisons. CCA offered to buy and operate a state's prison in exchange for a 20-year contract, which would include a 90 percent occupancy rate guarantee for the entire term.1 Essentially, the state would have to guarantee that its prison would be 90 percent filled for the next 20 years (a quota), or pay the company for unused prison beds if the number of inmates dipped below 90 percent capacity at any point during the contract term (a "low-crime tax" that essentially penalizes taxpayers when prison incarceration rates fall). Fortunately, no state took CCA up on its outrageous offer. But many private prison companies have been successful at inserting occupancy guarantee provisions into prison privatization contracts, requiring states to maintain high occupancy levels in their private prisons."
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