Privatization

Postcard from Arizona to John Roberts: Money Corrupts

In a week in which the Supreme Court turned a blind eye to the reality of money corrupting politics, a story out of Arizona provides a clear example of the insidious influence of the private prison industry and its campaign contributions. 

Arizona has been at the forefront of bad prison policy and big profits for private prison companies. People For the American Way’s 2012 report, “Predatory Privatization: Exploiting Financial Hardship, Enriching the One Percent, Undermining Democracy,” explored how Arizona officials’ political and ideological commitment to prison privatization overrode good policy and common sense. Unbelievably, faced with evidence that privately run prisons were costing taxpayers more, not less, than state-run prisons, some legislators moved to stop the state from collecting the data.

This February, we wrote about Politico’s coverage of the private prison racket. “Companies that manage prisons on our behalf have abysmal records,” author Matt Stroud asked, “So why do we keep giving them our business?” One answer is that the industry spends a fortune on lobbying and campaign contributions.

This week’s story shows how those investments can pay off. According to the Arizona Republic, House Appropriations Committee Chairman John Kavanaugh tried to slip a last-minute $900,000 earmark for private prison giant GEO Group into the state budget. The company is already expected to get $45 million this year under contracts with the state that guarantee the company at least a 95 percent occupancy rate, “virtually ensuring the company a profit for operating its prisons in Arizona.” The state Department of Corrections said the extra money isn’t needed, but Kavanaugh heard otherwise from the company’s lobbyists. GEO executives gave Kavanaugh more than $2,500 in 2012.

The good news is that the Senate Appropriations Committee dropped the extra funding “following an uproar of criticism from Arizonans.”

PFAW

Public Turning Against the Private Prison Racket

PFAW’s 2012 report, “Predatory Privatization: Exploiting Financial Hardship, Enriching the One Percent, Undermining Democracy,” included a section titled, “The Pernicious Private Prison Industry.” We reported that across the country, private prisons were often violent, poorly run facilities that put prisoners, employees and communities at risk even while failing to deliver on promised savings to taxpayers. But state legislators, encouraged by ALEC and by private prison interests’ lobbying and campaign expenditures, continued to turn prisons over to private corporations, often with contract provisions that acted as incentives for mass incarceration.

A new story in Politico Magazine, “The Private Prison Racket” comes to the same conclusions. “Companies that manage prisons on our behalf have abysmal records,” says author Matt Stroud. “So why do we keep giving them our business?”

The Politico story slams “bed mandates” – guarantees given by states to private companies to keep prisons full.  Contracts like that build in incentives for governments to lock people up – and punish states financially when they try to reduce prison populations.

Politicians are taking notice. Last month, In the Public Interest reported that reality has turned the tide against private prisons: “Coast-to-coast, governments are realizing that outsourcing corrections to for-profit corporations is a bad deal for taxpayers, and for public safety.” The dispatch cited problems with private prisons in states as diverse as Arizona, Vermont, Texas, Florida, and Idaho, where Gov. Butch Otter, a “small government” conservative, announced last month that the state would take control of the Idaho Correctional Center back from private prison giant Corrections Corporation of America due to rampant violence, understaffing, gang activity, and contract fraud.

But the huge private prison industry is not going away anytime soon. As In the Public Interest notes:

All of this momentum does not suggest the imminent death of the for-profit prison industry. Some states, including California and West Virginia, are currently gearing up to send millions more to these companies. But the past year has been a watershed moment, and we are heading in the right direction. In light of these developments, these states would be wise to look to sentencing reform to reduce populations, rather than signing reckless outsourcing contracts.

The arguments against private prisons are myriad and compelling. Promised savings end up as increased costs. Lockup quotas force taxpayers to guarantee profits for prison companies through lock up quotas hidden in contracts. They incentivize mass incarceration while discouraging sentencing reform in an era when crime rates are plummeting.

But more than anything else, the reality of the disastrous private prison experiment has turned the public against the industry.

 

PFAW

New Poll Shows Overwhelming Opposition to Private School Vouchers

The annual PDK/Gallup poll records the highest level of opposition to private school vouchers in the survey's history.
PFAW

Prison Privatization: Reality vs. 'Magic of the Marketplace'

People For the American Way’s 2012 Right Wing Watch In Focus report, “Predatory Privatization,” included a section on the pernicious private prison industry. The report documented that, for all the talk of efficiency and accountability among lawmakers pushing privatization, the evidence pointed to a different reality: private prisons often deliver worse service, at higher costs to the taxpayer, with little accountability. One reason: massive spending by prison corporations on lobbying and political contributions.

Today, Think Progress points to new evidence: a sordid tale of prison privatization in Ohio. It links to a timeline produced by the ACLU of Ohio that chronicles the abysmal record of the Lake Erie Correctional Institute in the 18 months since Ohio sold the prison to the Corrections Corporation of America.

In that short period, the prison flunked two inspections, with independent reports documenting “filthy, broken facilities, as well as much higher rates of crime and violence in and around the prison.”

What about accountability? Think Progress notes:

Despite Lake Erie’s multiple violations of state standards, Ohio has stubbornly maintained its infatuation with private prisons. The state plans to outsource prison food to Aramark, a private vendor already under investigation in Kentucky for multiple contract violations, including serving old food that had not been stored properly and overbilling the state.

Republican-dominated state legislatures are all too eager to ignore the private prison industry’s dismal record. CCA and other companies like GEO are paying well to maintain their massively profitable government contracts; the industry spent $45 million on lobbying in the past decade. CCA has done especially well for itself, rebounding from near bankruptcy in 2000 to rake in a net income of $162 million in 2011.

PFAW

Mitt Romney's Revealing Comments About FEMA

Even when it comes to disaster relief, Romney is not one to allow the public welfare to get in the way of corporate profits.
PFAW

Arizona Prison Privatization: Ideology and Influence Trump Evidence

At 6:00 p.m. on the Friday before Labor Day weekend, Arizona officials announced the granting of a multi-million dollar contract to Corrections Corporation of America, a private prison giant, for the operation of one thousand medium security prison beds.  The grant was not exactly a big surprise; CCA had hired as lobbyists people close to Gov. Jan Brewer.

What should be more surprising is that officials are arguing with a straight face that the deal is good for taxpayers, in spite of evidence to the contrary.  As the Arizona Republic reported,

The contract calls for CCA to be paid a per diem rate of $65.43 per bed. The most recent information available shows the average daily cost per inmate in a state-run medium-custody facility in 2010 was $48.42. The award to CCA is 35percent more than what it cost the state to house and monitor inmates two years ago.

Unfortunately for taxpayers, Arizona officials have repeatedly demonstrated their willingness to tap taxpayers in order to advance an anti-government ideology and boost the profits of a company that is generous with its spending on lobbying and campaign contributions. 

 

People For the American Way Foundation’s recent report “Predatory Privatization” noted that private prisons in Arizona cost the state as much as $7 million more in 2009 and 2010 than units operated by the state department of corrections.  The report also noted CCA’s aggressive expansion plans:

Earlier this year, CCA wrote to officials in 48 states offering to buy and run prisons if states would guarantee a 90 percent occupancy rate. A coalition of religious groups urged state officials to turn down the offer, which the groups said would create an incentive for mass incarceration and “be costly to the moral strength of your state” as well as costly financially.

 

 

PFAW Foundation

Ohio Gov. John Kasich's Secret Video

In this by-invitation-only video, Ohio’s governor, John Kasich, sings praises to “the fighters of freedom, the grassroots leaders of American for Prosperity (AFP)”. While he was at it, he might have well just given a big thanks to Charles and David Koch, the financial sponsors of AFP, as well as large donors to the governor’s campaign.

So why exactly is Kasich thankful for Americans for Prosperity?

Well, Kasich applauds their support in helping with the privatization of the state’s economy. The new program known as JobsOhio is supposed “to be able to move at the speed of business”. But while it’s promoting corporate profits, JobsOhio will require privatizing five prisons, doing away with the state’s estate tax, and cutting funding for schools and local governments. Townships are expected to lose 50% of their funding from the state, while schools lose about 11.5%. That equates to roughly 10,000 teachers.

Another accomplishment Kasich celebrates could not have happened without AFP’s support is "government union reform". Translation: union-busting that prevents public workers (including teachers, firefighters, and police officers) from collective bargaining for benefits and from going on strike.

So it is no wonder that Governor Kasich did not want to make this video public. Thanking a group for helping him to cut thousands of jobs, limit workers’ rights, privatize state services, and put a significant tax burden on local governments certainly won’t be a great boost to his 33% approval rating.

PFAW