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The Problem in the U.S. with Incarceration Corporations

By Michal Antonov

The United States is the world leader in incarceration, with a total population of 2.2 million

inmates (Criminal Justice Facts). To alleviate overcrowding and save money, the federal and states

governments turned to private contractors. These contractors either manage specific services or an

entire facility. Since 2000, the number of inmates in private prisons has increased 45 percent

(Private Prisons). The Obama Administration issued a policy in 2016 that would phase out private

prison contracts, which was later reversed by Attorney General Jeff Sessions earlier this year. This

policy shift incited a debate over the use of private contractors. While some states continue to use

private contractors because they claim that they are beneficial, they ultimately have to be

eliminated due to concerns about cost-cutting and safety as well as because of the political

influence that they wield.

First, its important to outline what proponents of private contractors claim. Terry L.

Stewart, a retired director of the Arizona Department of Corrections, issued a white paper that

outlined the benefits. Taxpayers have to shoulder all the burdens of public prisons, such as

construction and operations. Stewart claims this is not the case with private prisons because the

contractor has to take care of all the costs. Contractors have reduced daily operating costs with

solutions such as reducing pension packages for employees, which are much richer for those in the

public sector. He also claims contractors improve the economy because they purchase local goods

and services, unlike public prisons which procure these items from state-approved vendors

(Stewart 2000). Stewart also addresses the common misconceptions about private prisons, such

as cutting corners for profit, high recidivism rates and safety concerns. He claims states will hold
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contractors accountable for funding, and that private prisons have lower recidivism rates and are

safer than private prisons.

Research suggests, however, that Stewarts claims about private contractors are wrong.

Private contractors are first and foremost for-profit corporations, which means that they appreciate

any measure that will increase profits. The U.S. is not only known for its large prison population,

but also the long sentences due to mandatory minimums and cutbacks in parole releases (Criminal

Justice Facts). In 2014, a study found that inmates in private prisons were likely to spend two to

three months more time behind bars than those in public prisons. Stewart does note that the state

pays private contractors for each occupied bed and these contractors have to return the money

when vacancies increase. But that means contractors have a financial incentive to increase

sentences. In Mississippi, private contractors were paid $50 on average for each occupied bed, and

60 extra days leads to an average additional cost of $3,000 (Kerwin 2015). The same study also

found that inmates in private prisons were equally likely to commit more crimes after release than

those in public prisons.

Other than increasing profits, for-profit corporations also focus on cutting costs. When

contractors do find ways to cut costs, they also reduce the quality of the goods and services they

provide. Aramark Correctional Services provides food for prisons, and was also one of the reasons

that led Michigan to sever ties with private contractors. In 2014, inmates at a Michigan facility

found maggots in their food. The company was also fined for food shortages, under-staffing, and

employees smuggling contraband (Cwiek 2014). Ironically, Arizona also experienced difficulties.

While Stewart writes that Arizonas contracts specify staffing requirements, he does not mention

other service areas. The state subcontracted prison healthcare to a private company in 2012.

Arizona legislators supported the switch due to the reasons that Stewart outlined. But after the
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switch, the ACLU filed a lawsuit against the Arizona Department of Corrections because prisoners

were in serious risk of pain, amputation, disfigurement and death (Leonard 2013). Studies

showed that medical spending in prisons dropped by $30 million and staffing levels decreased. In

2013, 50 inmates died in Arizona custody, while there were only 37 deaths in the previous two

years combined (Leonard 2013). This case shows that cutting costs to services such as healthcare

can put inmates in serious danger.

There have not been major problems with private subcontractors, but also with private

facilities. Contractors cut corners to save money by hiring less guards and spending less time

training them, which increases violence among inmates. In 2012, the Justice Department issued a

report about a juvenile prison in Mississippi managed by GEO Group. Federal Judge Carlton

Reeves wrote the facility has allowed a cesspool of unconstitutional and inhuman acts and

conditions to germinate, the sum of which places the offenders at substantial ongoing risk

(Burnett 2012). The report included that there were few guards in the facility and that they were

poorly trained, beat many of the prisoners, and allowed prisoners to have homemade knives which

were used to fight and rape. The Mississippi Department of Corrections r ousted GEO from this

facility the three others it ran in the state (Burnett 2012). This case runs counter to Stewarts

staffing claims.

Some states such as Arkansas, Kentucky, Maine, Michigan, Utah and Wisconsin

recognized the downsides of private corporations and eliminated their use of private prisons and

subcontractors. However, private contractors maintain their influence in the federal government.

A GEO subsidiary gave $225,000 to a pro-Trump super PAC, and then the company gave an

additional $250,000 to the presidents inaugural committee (Brittain, Harwell 2017). Private

contractors also has strong influence with Congressional candidates. In 2010, GEO contributed
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thousands to PACs that funded Sen. Marco Rubios senatorial campaign in 2010 (Hodai 2012).

Coincidentally, GEO recently secured a contract with the federal government for an immigration

detention center worth tens of million of dollars a year (Brittain, Harwell 2017). However, private

contractors still hold much influence in other states. The Miami Herald reported about the

deplorable conditions in Floridas private prisons in 2015, but it seems as though the states

relationship with contractors has not changed. GEO, which is based in Florida, has donated

thousands of dollars to Gov. Rick Scott and other Republican candidates in the state. This year,

Floridas Republican-controlled legislature decided to award a $3-million contract to GEO (Klas

2017). While Michigan and Arkansas managed to escape the clutches of private contractors,

Florida has not.

Private prison contractors do take away taxpayer burden, but at the same time they also

escape government oversight. Private contractors reduce the quality of their services because they

cut corners to reduce costs, which puts inmates in danger. They also seek to increase their profits,

which means that tough on crime stances benefit them. Private contractors are thriving in the

Trump era, so not only do they support Trump but they also have a big presence in certain states

and candidates that endorse his policies. The media as well as private organizations report on the

deplorable conditions in these facilities. But as long as candidates maintain relationships with

private contractors, these problems will never go away.

References

Burnett, J. (Producer). (2012, April 24). Miss. Prison Operator Out; Facility Called A

'Cesspool' [Transcript, Radio series episode]. In All Things Considered. NPR.

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Brittain, A., & Harwell, D. (2017, October 26). S Private-prison giant, resurgent in Trump era,

gathers at presidents resort. The Washington Post.

Criminal Justice Facts. (n.d.). Retrieved November 08, 2017, from http://

www.sentencingproject.org/criminal-justice-facts/

Cwiek, S. (Producer). (2014, July 3). Aramark contract "up in the air" after more maggots found

in prison food [Transcript, Radio broadcast]. In Snap Judgement . Michigan: Michigan

Radio.

Etter, L. (2017, January 10). America's Private Prisons Are Back in Business. Bloomberg.

Hodai, B. (2012, August 29). Marco Rubio, Geo Group, and a Legacy of Corruption. PR Watch.

Leonard, A., & May, A. (Writers). (2013, December 2). Arizona's privatized prison health care

under fire after deaths [Television broadcast]. In America Tonight. Aljazeera.

Kerwin, P. (2015, June 10). Study Finds Private Prisons Keep Inmates Longer, without Reducing

Future Crime. University of Wisconsin-Madison. Article cites "Impacts of Private Prison

Contracting on Inmate Time Served and Recidivism" by Anita Mukherjee.

Klas, M. (2017, July 12). Legislators quietly dish no-bid, $3 million contract to private prison

group. Miami Herald.

Klas, M. (2015, February 28). The cannibalizing of Floridas prison system. Miami Herald.

Private Prisons in the United States. (n.d.). Retrieved November 08, 2017, from http://

www.sentencingproject.org/publications/private-prisons-united-states/

Stewart, T. L. (2000). Private Prisons Advantages and Misconceptions from an Arizona

Director's Perspective, from https://morrisoninstitute.asu.edu/sites/default/files/content/

products/Private%20Prisons%20-%20Misconceptions.pdf
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