Corrections Corporation of America - The 'Gladiator' Of Rotten Industry in Idaho

How nice to see CCA back in the headlines…yet again. Not surprisingly, they seem to be making headlines for doing what they do best – abusing prisoners, participating in dirty cover-ups and of course, costing us taxpayers a damnable fortune for their sorry ass screw ups and inability to safely house so much as a dog, let alone any human beings.

While the political contributions may be a surprise to some residents of Idaho, they certainly are not anything new to anyone remotely familiar with the companies like CCA that operate these prison-for-profit scams to fleece the states and taxpayers out of their money. They buy the lawmakers of every state they do business in; Idaho is not unique at all. In fact, all they’ve done in Idaho has been to implement the same formula for ‘success’ that they have already used in TN, NM, AZ and every other state they do business in.

This page has numerous resources and links to help the general public educate themselves as to how private prison industry operates in this country and to simplify, they are all linked at the bottom of this article. Before you vote for your next state legislator or leader, isn’t it worth your time to make sure they are not on the payroll of one of these appalling companies who don’t care a damn thing about the safety of the public so long as the CEO’s and shareholders can keep lining their pockets…with our tax dollars!

Excerpts from an outstanding two-part investigative series by KBOI 2News which can be found Here and Here.

"Back in July, 2000, the Idaho Correctional Center opened as the state's first privately run prison. Recently, I.C.C, run by Corrections Corporation of America, has come under fire after a lawsuit filed by the America Civil Liberties Union, alleging misconduct, mismanagement and more.

Last year, officials with the Idaho Department of Correction discovered 10 of 13 drug and alcohol counselors at the prison weren't qualified to provide treatment. A separate medical audit revealed I.C.C. had extensive problems administering medical care, including delays in providing medication. In total C.C.A. was fined more than $141,000 by the state.

But the problems for C.C.A. are not limited to Idaho. We found complaints against C.C.A. in all 19 states they operate, all within the past decade, involving much more than just medical care.

Last year the governor of Kentucky ordered 400 female inmates to be removed from a C.C.A. run prison after allegations of sexual misconduct by male guards. In 2009, C.C.A. settled with 21 former female workers in Colorado who claimed male managers forced them to have sex to keep their jobs. In Florida, a corrections officer pleaded guilty to smuggling drugs into a C.C.A. run jail. And in December, C.C.A. settled another lawsuit with the A.C.L.U. in California requiring, in part, the San Diego Correctional Facility hire more nurses.

“It’s not just unique to this facility,” says B.S.U. Criminal Science Professor Dr. Michael Blankenship. Blankenship says part of the problem is that private prison companies like C.C.A. exist to make a profit. “If you’re not delivering profits,” say Blankenship, “who’s going to buy your stock?”

We checked into the financial health of C.C.A. A decade ago on February 1st, 2001, their stock was trading at $2.50 a share. Four weeks ago, on February 1st, 2011, it was ten times that amount at $25.09 a share.

But not only does C.C.A. make money. They give money. KBOI 2News obtained a list of candidates receiving money from C.C.A. between 2003 and 2010. At the head of the pack receiving $19,000 is Idaho Governor Butch Otter.

We called C.C.A. to find out why but the company declined our request for an on camera interview. Instead, Spokesman Steve Owen sent a statement that reads in part: “Because C.C.A.’s political contributions reflect the specific laws and limits of individual states, it is difficult to compare our corporate giving to elected officials from different regions of the country.”

The disparity in campaign contribution is even more noteworthy when you consider of the 75,000 inmates C.C.A. supervises nationwide only 2,000 of them are here in Idaho. That’s less than 3%.

But here's why every Idaho taxpayer should care about what happens to Idaho inmates.

If the state of Idaho is dragged into court it takes taxpayer money for a defense, not to mention a judgment.

Originally the A.C.L.U. named Idaho on the lawsuit, right along with C.C.A. in the case. But last June the A.C.L.U. agreed to drop Idaho as a defendant, saving taxpayers the possible expense in this case.

Currently the A.C.L.U. is suing C.C.A. for $155 million dollars, which is equal to the amount of profit the company earned in 2009."

Check out the full story on  KBOI 2News

For More Information on CCA's wrongdoings and legal woes - Click Here

For More Information on Private Prison Industry - Click Here

For Information on CCA stockholders, CEOs and other connections - Click Here

To Find Out Which Lawmakers Are On CCA's payroll - Click Here

For a complete overview of how private prison industry impacts our laws, our freedoms and our way of life - Click Here.

CCA Prison Detainee Count Distorts MS Census

For anyone who might think that there are no connections between our open-border policy and refusal to deport criminal immigrants and corporate and legislative profit motives, examples like this one ought to help explain why our legislators continue this insane push to incarcerate vs. deport the criminals streaming across our borders.

It is no secret that CCA helps write immigration policy and anyone who thinks they don't force an agenda that is in the best interest of their stockholders rather than the best interest of American citizens and communities might want to spend some time doing a bit more research into who is behind the shaping of our national and state legislative actions and policy making.

Corporations like CCA are able to work with our lawmakers for a $50,000 fee paid to The American Legislative Exchange Council - is it any wonder they promote policy that will increase their profit margins and value on Wall Street?

So while they make a fortune, we the taxpayers get to foot the bill for facilities like the $128 million dollar Adams County Correctional Center. The census should reflect the true population, and not be distorted by counting the imported and illegal immigrant status criminals housed in the districts simply to boost corporate and dirty legislative profits.

Excerpts From Natchez Democrat, "Reality of Population Drop Worse" Posted by By Emily Lane

NATCHEZ — The 2010 U.S. Census included a sizable chunk of people as Adams County residents who do not live in these parts by choice.

Approximately 2,000 inmates at the Corrections Corporation of America prison were counted as Adams County residents in the recent census, Adams County Correctional Center Warden Vance Laughlin confirmed.

That means that the county lost approximately 4,000 — approximately 13 percent — of its population in the last decade when excluding prison inmates at the Adams County Correctional Facility from the equation. Adams County’s population decreased to 32,297 in 2010 from 34,340 in 2000, counting the inmates.

The extra boost in census population explains the growth reported in District 5.
Inmates included, District 5 has 23-percent more residents than the average of all of the districts’ populations.

The census also counted 1,878 Hispanics in District 5, compared to an average of 68 Hispanics in Districts 1-4.

Most of the 2,567 beds at CCA are filled with inmates from Central and South America. An exact breakdown of the prison’s census count was not available by press time.

CCA has a contract with the Federal Bureau of Prisons to house 2,567 criminal alien offenders in Adams County Correctional Center. 

The offenders are low-security illegal immigrants who committed offenses in the United States and will be returned to their country of origin after completing their sentences.

Stacy Vidal, a public information officer for the U.S. Census Bureau, said each state is responsible for its own rules and processes for how they use census data to draw district lines.

Read The Full Story on The Natchez Democrat

Dial "0" For Corporate Prison Industry

It is one thing to have work programs that either (A) save taxpayers money by making a prison more self-sustaining, i.e., dairies, farming and so on or (B) provide a service for the state that again, saves taxpayers money such as making office furniture, license plates or signs for state agencies. It is quite another thing though to allow corporations to use prison labor for profit making ventures that ultimately hurt taxpayers - programs like Excel call centers. Not only are prisoners forced to work for pennies a day, the jobs they are doing are taking jobs away from communities as well.

Mega corporations should not be allowed to use incarcerated US citizens as a way around paying SS or payroll taxes. They should not be allowed to operate and profit at our expense. Mega-corporations are the only ones who profit from this and it is we the taxpayers getting royally screwed while they do it.
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Excerpt from Ft. Worth Weekly

When you call directory assistance using, say, Excel Telecommunications, chances are good your inquiry might be answered by a federal prisoner. At Carswell, a fifth of the prison workforce — most from the camp but a few from the hospital as well — get to sit in cubicles in an air-conditioned building, start at almost double the pay of the regular prison jobs, and, if they behave and don't make mistakes, get regular raises until they reach the maximum pay of — hold onto your hat — $1.45 an hour. Of course, they have to work seven and a half years to reach that maximum. And since this center hasn't been open long enough for anyone to make the maximum, the highest pay at Carswell is $1.15 an hour. With toothpaste at $5.95 in the prison commissary, inmates who take those calls for Excel have to work between five and 25 hours to earn enough for one tube. But by comparison, they're lucky: Women who work at other prison jobs have to sweat out 49 hours for the luxury of brushing their teeth.
The math on the other end is even simpler, if grander in scale: Excel, a $2.5 billion global company, comes out the clear winner. If the 19-year-old Irving-based long-distance carrier had to pay no more than minimum wage to non-prison U.S. workers to field calls from its worldwide network, it would cost the company $900 a month per worker, plus benefits and payments to Social Security. The 370 prison workers in Excel's call center at Carswell make $180 a month at most, with no benefits. But the Carswell prisoners are far from the only ones participating in this exercise in government-assisted capitalism. How many people know that when they dial 411, the operator at the other end of the call is often a federal prisoner? Or that when they call to reserve a camping space at a national park, the person taking their personal information may be sitting in a cubicle in a maximum-security prison? Or that the body armor for the soldiers fighting in Iraq and Afghanistan is being manufactured by federal inmates?
In what critics call slave labor and advocates call job training, more than 100 factories and service centers in federal prisons across the United States employ inmates in jobs such as those above and hundreds more, making everything from underwear to military gear to intricate electrical components, all under the umbrella of a near-billion-dollar corporation known as the Federal Prison Industries, Inc., trade name Unicor. This little-known and wholly owned arm of the BOP has come under fire in recent years from environmentalists, prison reform groups, and congressional investigative committees for, among other things, exposing inmate workers to dangerous levels of lead and other toxins in its computer recycling centers. The company has also been investigated for profiting from sales of tens of thousands of excess Defense Department computers that were supposed to be given free to low-income schools around the country and, what may be worse, failing to remove sensitive data from the computers it resold. Unions and even the U. S. Chamber of Commerce are up in arms over its use of dirt-cheap prison labor to take jobs from the private sector.

Read Full Story Here at Ft. Weekly

CCA & GEO Group Propose More ICE Detention Facilities

Once again I have to ask why we are wasting our money housing immigrants instead of spending the money sensibly to stem the tide at the border? Why can we not deport the ones already here in an expedient manner instead of forcing citizens to bear the cost of housing them while deportation cases drag on for months and years? This is what we are putting our great-grandchildren in debt to pay for?? Outrageous!

By Beth Brelje

Pocono Record Writer

December 07, 2010

A well-developed plan for a massive Pike County federal detention center is one of three finalists being considered by federal Immigration and Customs Enforcement officials, according to county Commissioner Harry Forbes.

Two other proposed locations — in York County, Pa., and Essex County, N.J. — are being considered for the 2,256-bed center to house illegal immigrants, Forbes said. The winning location may be announced in the next two weeks.

A similar proposal by a different prison provider, GEO Group, to place such a center in Northampton County was recently scrapped.

In Pike County, officials are partnering with Corrections Corporation of America, a large national private prison provider. CCA and Pike officials presented plans to federal authorities on Oct. 22, Forbes said.

Between 450 and 600 jobs would be created locally if the detention center is placed in Pike. Immigration officials would transfer an additional 200 workers to the Pike facility, according to Forbes.

CCA-drawn indoor and outdoor renderings show the proposed facility would dwarf the existing Pike County Correctional Facility on a bordering lot. The detention center would be at the corner of Route 739 and Pike County Boulevard in Blooming Grove Township.

Nationally, CCA houses approximately 75,000 offenders and detainees in more than 60 facilities, with a total bed capacity of more than 80,000, according to its website. The company, which is more than 25 years old, partners with the Federal Bureau of Prisons, the U.S. Marshals Service and Immigration and Customs Enforcement as well as states and local municipalities.

Read More...

Private Prison Lobbying Pays Off For CCA (And Others) In AZ

*Gasp* Oh my! How totally shocking! Brewer has numerous ties and connections to, uhm..who was that again, exactly? Oh! That's right, silly me! The private prison corporations like CCA. Having a prison industry lobbyist on your staff would certainly have no bearing whatsoever on decision like handing contracts to private prisons now would it? To be precise, her prison connections according to State lobbying records show two of her top advisers — her spokesman Paul Senseman and her campaign manager Chuck Coughlin — are former lobbyists for private prison companies.

A state commission studying privatization will likely recommend privatizing Arizona's parks and prisons as a way to help ease the state's budget deficit when it releases its full report in December.

KPHOChannel5

"This is one way to economize in a way that will cause the least amount of pain to the public," said Glenn Hamer, a member of Arizona's Commission on Privatization and Efficiency.
Gov. Jan Brewer created the commission to help Arizona save money.The state is currently facing a more than $1 billion budget deficit."This is 101 for good government to look for ways that you can save taxpayer dollars," said Hamer, who is also the president and CEO of the Arizona Chamber of Commerce and Industry. Hamer said most of the commission's recommendations will be kept secret until the report is released, but he expects the report to recommend privatizing Arizona's state parks and privatizing more state prisons."Privatizing prisons is a still good deal for this state," said Hamer.The issue of privatizing prisons is controversial in Arizona.

Opponents -

"I think that's a horrible idea," said state representative Chad Campbell, D-District 14. "We should not be looking at privatizing more prisons. People escaped; people were killed and it was due to privatizing a very important government function without any accountability."
Campbell also said the commission's recommendations could result in thousands of state employees losing their jobs."I think we need to very cautious about how we about privatizing anything," he said. 

Full Story on KPHO

Lawsuit Alleges Barbaric Conditions and Abuse Of Teens

Once again, a fine example of what our tax dollars are buying. How many children must we pay to damage? In our eagerness to provide a 'safe world' we have gone overboard on how harshly we punish children for petty, non-violent crimes. To allow our government to turn over the care of our children over to corporations who profit from 'punishing' them is not only morally reprehensible, it is waste of our tax dollars. 

Mandatory sentencing laws have removed all common sense from our juvenile justice system and the end result is that we are allowing corporations to breed more violent offenders to release back into society. The earlier a child is thrown in to detention, the higher the odds they will reoffend. When we allow children and teens to suffer abuse, the corporations responsible for the abuse (and hence, creating angry, violent young adults) to create 'repeat customers' for life and guarantee their profits. 

We need to bring back some common sense in this country and a good place to start would be helping our children and put an end to aiding corporations from over-punishing them for profit.

The Dispatch 

Lawsuit: 'Barbaric' conditions at Miss. youth correctional facility
The Associated Press
November 16, 2010 2:01:00 PM 

Excerpt - "The suit, which seeks class action status, names the Walnut Grove Correctional Authority, the GEO Group, Inc., which is contracted to operate the facility; Health Assurance, LLC; Walter Tripp, the facility's warden; Mississippi Department of Corrections Commissioner Chris Epps and Mississippi Education Superintendent Tom Burnham.

GEO Group, based in Boca Raton, Fla., and the agency officials declined to comment on the lawsuit Tuesday.

The complaint details allegations of inmates stripped naked and held in isolation weeks at a time; sick inmates denied proper health care and prison guards who were complicit in inmate fights that resulted in stab wounds and severe beatings, including one that left an inmate with permanent brain damage.

The suit also claimed handcuffed youth were kicked and punched by guards, while others secured in their cells were sprayed with chemical restraints.

The facility, which opened in 2001, is located in Leake County and houses some 1,200 inmates aged 13-22. More than half of the inmates are incarcerated for committing nonviolent offenses, the complaint states.

The complaint states that courts often require youth sentenced to the facility to complete their education while incarcerated, but most youth are denied access to basic education.

The suit said under staffing at the prison is one of the main problems, and cited reports from the Joint Committee on Performance Evaluation and Expenditure Review and the MDOC Corrections Auditor that have also raised concerns about the issue.

Taxpayers pay the Walnut Grove Correctional Authority $14 million each year to operate the prison, according to the complaint. The suit alleges that in many parts of the prison only one guard is assigned to a zone, which could hold as many as 60 inmates.

"It has a strong financial incentive to imprison as many youth as possible on the cheap," Bedi said."

Full Article On The Dispatch

More GEO Group Complaints and Wrongdoings

Geo Group's Pending ICE Contracts

Now that GEO Group has succeeded in putting one of their spokesmen/puppeteers in place as head of the US Marshall's Service, they have a stronger chance of winning the *bid* for this contract...and many others as well. Small communities everywhere should be aware and not fall for the ruse of corrections for profit as a money saving endeavor. Communities who have fallen for it have paid a pretty hefty price in many cases.

From
By Beth Brelje

Pocono Record Writer

November 15, 2010 

GEO Group, formerly known as Wackenhut, wants to build and operate the detention center in Upper Mount Bethel Township, Northampton County. The operator says the center would house 2,250 illegal immigrants awaiting deportation. The project, the company says, would provide 350 construction jobs and 500 permanent jobs.

Immigration and Customs Enforcement has announced an interest in securing additional detention space in the Northeast, said ICE spokesman Mark Medvesky. Ideally, a detention system would reduce transfers and house people near the site of their apprehension, and close to legal services and hospitals.

"Counties, along with private companies with whom they may choose to partner, are drafting concept papers for ICE's consideration. These concept papers, developed by local jurisdictions, are not binding on ICE," Medvesky said in an e-mail to the Pocono Record. "No sites for the northeastern U.S. have been selected and no intergovernmental service agreements have been awarded."

Story Continues -

What if GEO Group doesn't get a contract from ICE, or decides to leave after the center is built?

"In Littlefield, Texas, the municipality had to dip into reserves to cover payments for about $1.2 million in bonds and other debt used to finance the Bill Clayton Detention Center," Smart Money magazine reported in September. "The bonds were issued in 2000, but the expected revenue stream evaporated when, after a prisoner suicide in 2008, the 310-bed private prison lost its contract to house out-of-state inmates. In 2009, GEO Group ended its operating agreement with the detention center, leaving it unoccupied."

In Pueblo, Colo., GEO Group initially promised to fund the building of a private prison for 500 state inmates and later demanded repeated changes in the deal. GEO wanted government financing and changed the size of the proposed prison.

"GEO demanded more money. It wanted either more money per inmate, or a revenue guarantee that amounted to $1 billion over 30 years for two prisons," according to a 2006 report by the Rocky Mountain News."

For more information about the impact of the proposed facility and for more background on GEO Group Read Full Article

Prison Corporation Looking to Take Advantage of Small PA Community

Folks in PA had best be aware of GEO Group. They are slick salesmen, always promising jobs to help the community but never making small communities aware that prisons do not help at all, but rather, only cause harm. Who will take their kids to vacation anywhere near a town with a prison? Care to stay at a Holiday Inn next door to a detention center? Build a school nearby? Start up a small local business?

Truth is that in community after community across the US, GEO Group has done nothing but kill industry and cause harm to local residents. The jobs they bring in are not for everyone and force residents to settle for working a job in which they risk their lives everyday while receiving minimal training, little protection and are often forced to work multiple shifts because the company is too cheap to hire enough staff to cover all shifts. They don't like to pay benefits so why hire more than just the bare minimum to keep a facility running?

Then of course, there is the issue of lawsuits - of which GEO Group has plenty racked up. Abuses, escapes, murders...gosh, what community wouldn't want such a wonderful employer in their midst?

Finally, citizens should realize that at any time, GEO Group can choose to not renew their contract and then the township will be forced to either purchase the facility from GEO (at a hefty mark up price), be forced to allow another prison corporation like CCA (you know, the guys responsible for letting convicts escape from an AZ facility who then went on to murder a couple on vacation in NM) or at the very least, get stuck with a huge empty eyesore in their town that no one has use for.

From an article in The Morning Call -

Calabrese, the vice chairman and president of Florida's GEO Group, gave a 45-minute presentation Wednesday night about his company's idea for an inmate detention center just south of the Portland Industrial Park in Upper Mount Bethel Township.

Now, take note of the doublespeak in this next paragraph where first he states they aren't actually housing criminals - in spite of the fact that anyone who enters this country ILLEGALLY is technically a CRIMINAL. 

Calabrese stressed that the inmates — the facility would hold 2,250 — would not be serving time because of crimes they committed but because they're illegal immigrants awaiting deportation. However, the majority of them will have committed felonies and already served time in a prison, Calabrese said.

Slick, isn't he? More from the article - 

On the flip side, Calabrese said the detention center would create 500 jobs, many of them paying $35,000 to $40,000 a year with benefits included. On top of that, Calabrese said, the community would benefit from construction and supply expenses and tax revenue paid by GEO. Annual operation would call for about $37 million worth of labor, goods and services.

He fails to mention that GEO will demand huge tax breaks from the county and state so revenue from taxes generated will not come from them. The $37 million in labor, goods and services will be supplied by other corporations like Aramark and will not come from within the state or local community and therefore, provides zero benefits for residents.

The article ends with -

Before the facility could come to Upper Mount Bethel, Northampton County must have a contract with U.S. Immigration and Customs Enforcement to take on the responsibility to detain people in the United States illegally. After being contacted by GEO, Northampton County Council voted Oct. 21 to allow Executive John Stoffa to begin talks about a contract, which the county could then subcontract to the GEO Group or another company.
The county could risk violating competitive bidding laws if it appears the company was chosen without a public selection process, or without proof that the county can't find anyone else to provide the service.

In plain English, that means that GEO is looking to build a facility BEFORE there is a need and BEFORE they've won any contract with ICE. They are building a facility where the need for one DOES NOT EXIST. End result will be that the residents will be housing criminals shipped in from across the country and who will do nothing more than contaminate their community. I hope the people of this township stick to their resolve and kick GEO Group officials clean out of their county - or better yet, out of their state entirely.

GEO Group, CCA Net Out-of-State Contracts for California Inmates

Any wonder CA is broke? Private prisons cost tax payers an average of 33% MORE than what it costs for states to run their own prisons. All that extra money is going towards profit for corporations and there is NO justification for it. Do you like spending all that extra cash on housing offenders who aren't being rehabilitated? Does it give you a warm fuzzy feeling to know that lawmakers are awarding contracts to corporate cronies who don't give a damn about the safety of the general public? 

Private prisons are notorious for abuses against prisoners and before you say, "Oh boo hoo! Who cares if prisoners get abused?" stop and consider that the long term effects of abuse of prisoners results in ever angrier and more criminalized people being released back to the free world where they can then wreak havoc on your neighborhood. There is no point in creating more hardened criminals, no point in allowing our tax money to go towards corporate profits while the corporations don't care if anyone is ever rehabilitated - in fact, doesn't it work to their advantage to create more people who will commit more crimes, increase the odds of ex-cons reoffending...just so they can keep more beds full and charge the states more money to house prisoners?

Conservatives are not generally known for wanting to reform our prisons but anyone who has an interest in stopping the waste of our tax dollars, anyone who is against paying more and more and more money just to house 'the scum of the earth' really should wake up and realize that their hard earned money is being siphoned out of state coffers and into the pockets of corporations who ultimately make our country more dangerous. 

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Correctional News

The California Department of Corrections and Rehabilitation awarded GEO Group Inc. the contract for nearly 2,600 additional beds in out-of-state facilities, according to the CDCR. Also getting play from California is Corrections Corp. of America, with an offer in the works from CDCR to take on additional beds that are not currently under contract. The total of new beds in the new contracts could surpass 5,000, according to reports.

Nearly 2,600 California inmates contracted to GEO Group will be transferred to the company’s North Lake Correctional Facility in Michigan, according to a company statement. GEO Group expects revenues from the transfers to generate $60 million in annualized

Purchasing Access: Examining the GEO Group's Texas Political Expenditures

National Public Radio recently ran a story about how private prison companies helped write Arizona's controversial statute (currently being litigated in federal court) requiring local police to arrest and detain illegal immigrants. Private prison companies' interest in immigration law should come as little surprise for Grits readers: Nearly five years ago I wrote that the potential for expanded detention of illegal immigrants appeared virtually "limitless,"and this blog has long lamented the extra costs to county jails from such policies.

The NPR story inspired me this a.m. to look more closely at private prisons' political influence in Texas, and I plan to follow up with additional, related posts in the coming weeks. A 2006 public policy report (pdf) from the Institute on Money in State Politics identified Texas pols as the second largest recipient of private prison political spending after Florida.

The three big players in Texas' market are the GEO Group, Corrections Corporation of America (CCA), and a company called Management and Training Corporation (MTC) out of Utah. Of the three, only the GEO Group operates a state-level PAC in Texas. CCA and MTC's contributions appear to come mainly from individuals associated with the company, which are a bit more time consuming to track, so let's start with the Geo Group.

I went through the contribution reports for the Texas Geo Group Inc. PAC for this last election cycle and compiled a list of all Texas House and Senate members who both a) received contributions from GEO in 2009 and/or 2010 and b) won their elections and will be in the Legislature next year. Read the list, with totals combined from multiple reports on Grits For Breakfast

Our Taxe Dollars Hard At Work -Toxic Metals Tied to Work in Prisons

Nice. Our taxes pay to create long term health problems so in the future, we can spend even more tax money on medical treatment. Meanwhile, corporate/government entities pocket profits coming and going. How is this helping REHABILITATE anyone? Why are we forced to pay out of our hard earned money to fund this crap and these programs that DO NOT benefit either society or the prisoners we have to house.

 Excerpt from the NY TIMES...

“We have said all along that prisoners should not be managing toxic waste, and the federal government should never allow the export of such wastes to developing countries,” said Jim Puckett, executive director of the Basel Action Network, a group that advocates for rigorous standards for recycling electronic waste.

“Now we are finding out that not only did the federal government continue to allow it,” Mr. Puckett said, “they were doing it themselves and may still be doing it to this day.”
The recycling work is overseen by Unicor, a unit of the Federal Bureau of Prisons that employs inmates to manufacture items like furniture and license plates. Since 1997, it has accepted contracts for recycling computer monitors, televisions, printers and other electronic waste. 

CCA Announces Third Quarter 2010 Blood Earnings, er... Financial Report...

NASHVILLE, TN, Nov 03, 2010 (MARKETWIRE via COMTEX) -- CCA /quotes/comstock/13*!cxw/quotes/nls/cxw (CXW 26.39, -0.32, -1.20%) (the "Company" or "Corrections Corporation of America"), America's leader in partnership corrections and the nation's largest provider of corrections management services to government agencies, announced today its financial results for the third quarter and nine months ended September 30, 2010.
Financial Review - Third Quarter 2010 Compared with Third Quarter 2009

    -- Total revenues up 2.8% to $427.2 million from $415.4 million
    -- Operating income up 10.7% to $85.2 million from $76.9 million
    -- Adjusted Diluted EPS up 15.2% to $0.38 from $0.33
    -- Adjusted Funds From Operations Per Diluted Share up 6.8% to
       $0.63 from $0.59
    -- EBITDA increased 9.1% to $111.5 million from $102.2 million

For the third quarter of 2010, CCA generated net income of $42.0 million, or $0.38 per diluted share, compared with net income of $45.3 million, or $0.39 per diluted share, for the third quarter of 2009.
Total management revenue for the third quarter of 2010 increased 2.7% to $425.3 million from $414.2 million during the prior year period, primarily driven by a 2.9% increase in average daily inmate populations. Management revenue from our federal partners increased 12.6% to $186.3 million generated during the third quarter of 2010, compared with $165.5 million generated during the third quarter of 2009. The increase in federal revenue was primarily driven by an increase in populations from the Federal Bureau of Prisons (BOP) at our Adams County Correctional Center which commenced operations during the third quarter of 2009 and from the U.S. Marshals Service (USMS) at facilities located primarily in the southwestern region of the country. Management revenue from our state partners decreased to $210.7 million during the third quarter of 2010 compared with $218.3 million during the same period in 2009. State revenues were impacted by declines in inmate populations from the states of Arizona, Alaska, Washington and Minnesota, partially offset by an increase in inmate populations from the states of California and Georgia. 

Arizona PrisonTalks Delayed

Coolidge Examiner

City officials will have to wait until the dust is settled from gubernatorial election before they know whether or not they can move forward on a private prison for Coolidge.

The project also hit a snag when in July when three prisoners escaped from a facility near Kingman, Ariz.
A minimum- and medium-security private prison was approved by City Council over the summer.

“I think it’s been without question that the council has fully supported this from the moment we heard about the project, and the fact that we could be a player in the game,” Mayor Tom Shope said in June.

This Is The Company That's Desperate To Keep Marijuana Illegal In California

Joe Weisenthal

The latest polls don't look good. After looking like it might pass earlier in the election cycle, California's historic Prop 19 -- which would legalize Marijuana -- is now trailing.

But it's not over yet, and there are important business implications.

We've already told you some of the ways to make money from the coming legalization of pot (Tobacco names like RJ Reynolds would probably capitalize well).

But what if the measure goes down?

Check out Corrections Corp of America -- the biggest owner of private prisons.

As Mike Riggs at The Daily Caller notes, CCA has given money to Democratic candidate Dianne Feinstein, who inexplicably and appallingly opposes Prop 19. Because the legalization of weed result in a lot fewer arrests (not just for pot, but also for real crimes that deserve incarceration), this company has a lot to lose.

Last year, hedge funder Bill Ackman presented a bull case for this company, arguing that a huge boom in this area was imminent..

Click here to see the presentation >

Read more: Business Insider

Geo Group's purchase of Houston private prison company leaves it highly leveraged

From Grits For Breakfast
I noticed recent news that the Geo Group (formerly Wackenhut), a private prison company which has been expanding aggressively in Texas, saw its earnings increase last quarter not because its operations became more profitable but because they purchased yet another competitor, this time the Houston-based Cornell Group.

Geo's boosted earnings, though, also bring with them nine figures in additional debt for a company already leveraged to the hilt. In 2007, I'd quoted from their 10-K (which is an annual report filed with the Securities and Exchange Commission) which informed us that:

the company has a "significant level of indebtedness that could adversely affect our financial position," mostly spent to buy competing private prison companies. And how might this debt "adversely" affect Geo? First and foremost, the company says, it could "require us to dedicate a substantial portion of our cash flow from operations to payments on our indebtedness." Translated, that means they've got so much debt they're going to have to divert funds from their facilities they're operating to help pay it off!

The same warning was included in Geo's most recent 10K, but after the purchase of Cornell it deserves to be amplified. The more debt the company has, the greater risk they must "dedicate a substantial portion of our cash flow from operations to payments on our indebtedness." (They'll also be dedicating a portion of their revenue, btw, to pay the board chairman's son-in-law a fat $144K salary plus stock options, which is the kind of executive hire that to me raises a red flag.)

According to Texas Prison Bidness, Cornell operated 10 facilities around the state, many of them housing juveniles and/or focused on treatment programming. The acquisition beefs up Geo's Texas portfolio considerably after a spate of lost contracts around the state. Texas Prison Bidness recently observed that:

GEO has lost at least 5 contracts in Texas in the past several years.  GEO lost its Bridgeport TDCJ contract earlier this summer and the 2008 re-contracting of the Estes unit to MTC.  In 2007, the state of Idaho pulled its inmates from the Dickens County Correctional Center in the wake of the suicide of inmate Scot Noble Payne and a subsequent investigation into "squalid" conditions at the lock-up.  Idaho also cut its contract the Bill Clayton Detention Center in Littlefield, Texas after the 2008 suicide of Randy McCullough.  And, as the the article indicates, the Coke County Juvenile Justice Center was shuttered in October 2007 by the Texas Youth Commission after a damning investigation into conditions at the youth detention center.

Geo has six contracts up for renewal this year, according to its 10K, and at four are in Texas (Mineral Wells, North Texas ISF, South Texas ISF, and Bridgeport, which they already lost). About 1/3 of GEO's contracts end by 2012 and must be renewed or re-bid. Five customers including the State of Texas account for most of Geo's revenue:

We have provided correctional and detention management services to the United States Federal Government for 23 years, the State of California for 22 years, the State of Texas for approximately 22 years, various Australian state government entities for 18 years and the State of Florida for approximately 16 years. These customers accounted for 63.5% of our consolidated revenues for the fiscal year ended January 3, 2010.

The lull in the immigration detention market that's left competitor CCA with 12,500 empty beds is also affecting Geo on a couple of speculative construction projects, says their 10-K:

We are currently in the process of expanding two facilities to add additional beds that we do not yet have corresponding management contracts to operate. While we are working diligently with a number of different customers for the use of these remaining beds, we cannot in fact assure you that contracts for the beds will be secured on a timely basis, or at all. While these facilities are vacant, we estimate that we will incur carrying costs ranging from approximately $1.0 million to $1.5 million per facility, per fiscal quarter. Failure to secure management contracts for these projects could have a material adverse impact on our financial condition, results of operations and/or cash flows. In addition, in order to secure management contracts for these expanded beds, we may need to incur significant capital expenditures to renovate or further expand these facilities to meet potential clients’ needs.

I'd also pointed out back in 2007 that GEO making its debt payments required the company to rely on payments from subsidiaries that it could not guarantee:

The 10-K declares that Geo relies on "distributions" (i.e., "profits") from its subsidiaries to pay its increasingly large debt. Profits from subsidiaries made up more than 28% of Geo revenue last year, but the 10-K cautions that "Our subsidiaries are separate and distinct legal entities and are not obligated to make funds available for payment of our other indebtedness in the form of loans, distributions or otherwise."

In other words, we're not solvent without payments we can't ensure will keep coming, and our subsidiaries are "separate and distinct legal entities" who we don't control. That works out nicely for Geo if they go bankrupt, doesn't it?

That was written when subsidiaries made up 28% of Geo's revenue. Today, according to Geo's 10K, "For the fiscal year ended January 3, 2010, our subsidiaries accounted for 50.1% of our consolidated revenue, and, as of January 3, 2010, our subsidiaries accounted for 59.0% of our total segment assets." If the Cornell acquisitions are treated as subsidiaries, that risk will be even further magnified. The Geo Group is a heavily leveraged company.

In closing, here are a few more Texas-specific tidbits culled from Geo's 10-K:

"On May 4, 2009, we announced that we executed a contract with Bexar County, Texas Commissioners’ Court for the continued operation of the 688-bed Central Texas Detention Facility located in San Antonio, Texas. This facility, which is owned by Bexar County, houses detainees predominately for the U.S. Marshals Service. We have managed this facility since 1988. The new contract will have a term of ten years, effective April 29, 2009."

Some of the company's gains were "offset by a decrease in revenues of $20.6 million due to the termination of our management contract at the Sanders Estes Unit in Venus, Texas, Newton County Correctional Center in Newton, Texas, Jefferson County Downtown Jail in Beaumont, Texas, Fort Worth Community Corrections Facility in Fort Worth, Texas, and the Tri-County Justice & Detention Center in Ullin, Illinois."

"Effective June 15, 2009, our management contract with Fort Worth Community Corrections Facility located in Fort Worth, Texas was assigned to another party. Prior to this termination, we leased this facility (lease was due to expire August 2009) and the customer was the Texas Department of Criminal Justice."

"On September 8, 2009, we exercised our contractual right to terminate our contracts for the operation and management of the Newton County Correctional Center, referred to as Newton County, located in Newton, Texas and the Jefferson County Downtown Jail, referred to as Jefferson County, located in Beaumont, Texas."

"[R]evenues increased $24.1 million in total due to the activation of three new contracts in Third and Fourth Quarter 2008 for the management of Joe Corley Detention Facility in Conroe, Texas, Northeast New Mexico Detention Facility in Clayton, New Mexico and Maverick County Detention Facility in Maverick, Texas ... [and] revenues increased $24.6 million in 2009 as a result of our opening of our Rio Grande Detention Center in Laredo, Texas in Fourth Quarter 2008."

"On September 15, 2006, a jury in an inmate wrongful death lawsuit in a Texas state court awarded a $47.5 million verdict against us. In October 2006, the verdict was entered as a judgment against us in the amount of $51.7 million. The lawsuit, captioned Gregorio de la Rosa, Sr., et al., v. Wackenhut Corrections Corporation, (cause no. 02-110)  in the District Court, 404th Judicial District, Willacy County, Texas, is being administered under the insurance program established by The Wackenhut Corporation, our former parent company, in which we participated until October 2002. Policies secured by us under that program provide $55.0 million in aggregate annual coverage. In October 2009, this case was settled in an amount within the insurance coverage limits and the insurer has now paid the settlement amount. On February 8, 2010, the Court of Appeals, 13th  District of Texas, entered judgment dismissing the appeal and the case has been concluded."

Arizona Facilities Host “CCA Day” at the State Capitol

CCA employees connect with state officials, receive kudos for their contributions.

As if political money doesn't but these private prison corporations enough now they are boldly announcing their courtship openly.  The following is from CCA's own website about their events in Arizona at the state capitol.

More than 60 CCA employees from the six Arizona facilities – Central Arizona Detention Center, Eloy Detention Center, Florence Correctional Center, La Palma Correctional Center, Red Rock Correctional Center and Saguaro Correctional Center – recently had an opportunity to rub elbows with some of the state Capitol’s most prestigious officials.

Through an event known as “CCA Day,” the facilities invited legislators and staff from the governor’s office to the Capitol lawn for lunch catered by Macayo’s, a local Mexican food restaurant. They also got a glimpse of the Capitol’s inner workings.

“We saw it was an opportunity for decision makers at the Capitol to meet employees from our six facilities in Arizona to get a sense of both the important public service our more than 2,700 employees perform everyday as well as a chance to share with the attendees the significant economic impact the operations of our facilities have on the Arizona economy,” says John Malloy, CCA senior director, State Partnerships.