13-4 Private Sector
Why Privatize?
The primary incentive to privatize prisons is financial, despite the misconception that private prisons are automatically less expensive.
Cost Efficiency of Private Prisons
Private prisons can often be run more cheaply and efficiently than public ones due to:
Labor costs: Private firms often have nonunionized staffs with lower overtime pay, workers’ compensation claims, sick leave, and health care insurance costs, though base salaries are comparable to public prison employees.
Competitive bidding: Private corrections firms have a profit motive to buy goods and services at the lowest possible price.
Less red tape: Private corrections firms are not part of the government bureaucracy and thus avoid excessive paperwork.
Learning Objective 7: Arguments for and Against Private Prisons
Arguments For:
Cost Savings: Research from Temple University suggests states could save up to 45 percent in operating costs per prison by using private correctional facilities.
Example: Mississippi pays MTC 53 a day on prisoners in public facilities.
Arguments Related to Overcrowding and Outsourcing:
Alleviating Overcrowding: State governments facing tight budgets and overcrowded facilities find private prisons attractive.
Outsourcing Inmates: States may contract with out-of-state private prisons due to maximum capacity issues.
Example: Hawaii contracts with CoreCivic to house over 1,200 inmates at a private facility in Eloy, Arizona, because its prisons are full.
Arguments Against Private Prisons
The idea that private prisons are more economical is disputed, with studies suggesting they're not more cost-effective than public prisons.
There are concerns that private corrections companies may compromise security to cut costs.
Safety Concerns
Evidence, though anecdotal, supports criticism of private prisons.
Inmates at the East Mississippi Correctional Facility testified that the prison was effectively run by gang members.
Surveillance video showed an inmate being beaten for nearly 15 minutes before officers intervened.
There were reports of a mentally ill prisoner on suicide watch who hung himself and inmates setting fires for medical attention.
After CoreCivic took over Ohio’s Lake Erie Correctional Institution, assaults against officers and inmates increased by over 40 percent.
A report by the Office of the Inspector General found that inmates in private facilities were more likely to be assaulted by other inmates or staff.
Contractual Issues
Companies like The GEO Group often require that at least 90 percent of prison beds be filled at all times, leading to potential problems.
Philosophical Concerns
Critics argue that corrections should not be an industry and that only the government should have the authority to punish wrongdoers.
John DiIulio stated that because corrections involves the deprivation of liberty, it must remain wholly within public hands.
Incentives and Profits
Some observers believe that private corrections firms have an incentive to increase the amount of time each prisoner serves to maximize profits.
Companies could manipulate misconduct and good behavior reports to extend time served.
Alex Friedmann of Prison Legal News argues that inmates are treated as commodities, which is dangerous and troubling.
The Future of Private Prisons
Despite concerns, private prisons are likely to remain a significant part of American corrections due to:
Shrinking Corrections Budgets: States with limited budgets often turn to private prisons to manage inmate population overflow.
Congested Prisons: Overcrowding issues in state facilities drive the need for private correctional institutions.
Justice Department's Decision in 2021
The Justice Department decided not to renew contracts with privately operated criminal detention facilities.
Impact: This decision affects:
14,000 federal inmates housed in these institutions.
Hundreds of thousands of undocumented immigrants in private custody through U.S. Immigration and Customs Enforcement each year.
Arguments For Private Prisons
Cost Savings: States can save up to 45 percent in operating costs per prison by using private correctional facilities (Temple University research).
Example: Mississippi pays MTC 53 a day in public facilities.
Alleviating Overcrowding: Private prisons help state governments manage overcrowded facilities.
Outsourcing Inmates: States contract with out-of-state private prisons due to maximum capacity issues.
Example: Hawaii contracts with CoreCivic to house over 1,200 inmates in Arizona because its prisons are full.
Arguments Against Private Prisons
Cost-Effectiveness Disputed: Studies suggest private prisons are not more cost-effective than public prisons.
Safety Concerns: Private corrections companies may compromise security to cut costs.
Example Incidents:
East Mississippi Correctional Facility effectively run by gang members.
An inmate beaten for 15 minutes before officers intervened.
Mentally ill prisoner on suicide watch hung himself.
Inmates setting fires for medical attention.
Assaults increased by over 40 percent after CoreCivic took over Ohio’s Lake Erie Correctional Institution.
Inmates in private facilities are more likely to be assaulted.
Contractual Issues: Companies like The GEO Group require at least 90 percent of prison beds to be filled at all times.
Philosophical Concerns: Corrections should not be an industry, and only the government should punish wrongdoers.
Incentives and Profits: Private corrections firms have an incentive to increase time served to maximize profits.
Misconduct manipulation to extend time served.
Inmates are treated as commodities.