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Emerging Issues on Privatized Prisons - Office of Justice ...

Bureau of Justice Department of JusticeOffice of Justice ProgramsBureau of Justice AssistanceEMERGINGISSUESPRIVATIZEDPRISON SONThis document was prepared by the National Council on Crime and Delinquency, undergrant number 97 DD BX 0014, awarded by the Bureau of Justice Assistance, Office of Jus-tice Programs, Department of Justice . The opinions, findings, and conclusions or recom-mendations expressed in this document are those of the authors and do not necessarilyrepresent the official position or policies of the Department of Department of JusticeOffice of Justice Programs810 Seventh Street , DC 20531 John AshcroftAttorney GeneralOffice of Justice ProgramsWorld Wide Web Home of Justice AssistanceWorld Wide Web Home grant and funding information Department of Justice Response Center1 800 421 6770 The Bureau of Justice Assistance is a component of the Office of Justice Programs, which alsoincludes the Bureau of Justice Statistics, the National Institute of Justice , the Office of JuvenileJustice and Delinquency Prevention.

market. With jail and prison populations totaling approximately 1.7 million in the United States, the estimated 116,626-bed capacity of private correctional facilities makes up less than 7 percent of the U.S. market. Less than 5 percent (52,370 inmates) of the total 1.2 million U.S.␣ prison population is housed in private facilities.

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Transcription of Emerging Issues on Privatized Prisons - Office of Justice ...

1 Bureau of Justice Department of JusticeOffice of Justice ProgramsBureau of Justice AssistanceEMERGINGISSUESPRIVATIZEDPRISON SONThis document was prepared by the National Council on Crime and Delinquency, undergrant number 97 DD BX 0014, awarded by the Bureau of Justice Assistance, Office of Jus-tice Programs, Department of Justice . The opinions, findings, and conclusions or recom-mendations expressed in this document are those of the authors and do not necessarilyrepresent the official position or policies of the Department of Department of JusticeOffice of Justice Programs810 Seventh Street , DC 20531 John AshcroftAttorney GeneralOffice of Justice ProgramsWorld Wide Web Home of Justice AssistanceWorld Wide Web Home grant and funding information Department of Justice Response Center1 800 421 6770 The Bureau of Justice Assistance is a component of the Office of Justice Programs, which alsoincludes the Bureau of Justice Statistics, the National Institute of Justice , the Office of JuvenileJustice and Delinquency Prevention.

2 And the Office for Victims of of Justice AssistanceEmerging Issues onPrivatized PrisonsMonographFebruary 2001 NCJ 181249 James Austin, Coventry, Council on Crime and DelinquencyCover photo used with permission from The American Correctional Issues on Privatized PrisonsForewordOne of the most daunting challenges confronting our criminal Justice sys-tem today is the overcrowding of our nation s Prisons . The past decadehas witnessed a doubling of the number of adult offenders brought beforeour courts. According to one estimate, as we begin the new millennium,the nation s inmate population approaches the 2 million mark. Securingand humanely housing such a large population has placed an enormousburden on prison administrators as well as the federal, state, and localjurisdictions that must finance the institutional confinement of so the 1980s, the public s frustration over a perceived failure of the penalsystem to rehabilitate offenders and a reluctance to provide more fundingfor correctional institutions, coupled with the increasing demand for morejail space, precipitated a crisis.

3 One proposed solution that emerged wasthe privatizing of Prisons and jails by contracting out, in part or in whole,their operations. In 1987, the number of inmates incarcerated in privatelyoperated correctional facilities worldwide was 3,100; by 1998 the numberhad risen to 132,000. In the United States today there is a total of 158 pri-vate correctional facilities. Proponents of privatization have suggested thatallowing the facilities to be operated by the private sector could result incost reductions of 20 explore the Issues pertaining to the privatization of Prisons , the Bureauof Justice Assistance funded a nationwide study that has resulted in thismonograph, Emerging Issues on Privatized Prisons . The monograph exam-ines the historical factors that gave rise to the higher incarceration rates,fueling the privatization movement, and the role played by the private sec-tor in the prison system.

4 It outlines the arguments, both in support of andopposition to, Privatized Prisons , reviews current literature on the subject,and examines Issues that will have an impact on future privatizations. Anappendix provides practical guidelines for policymakers who are consid-ering privatizing a study resulted in some interesting conclusions. For example, it wasdiscovered that, rather than the projected 20-percent savings, the averagesaving from privatization was only about 1 percent, and most of that wasachieved through lower labor costs. Nevertheless, there were indicationsthat the mere prospect of privatization had a positive effect on prison ad-ministration, making it more responsive to reform. It is hoped that thismonograph will prove enlightening to those involved with the issue ofprivatized Prisons and promote a greater discussion about Issues on Privatized PrisonsExecutive ixCurrent Trends in Privatization.

5 IxPrior Research Findings on Privatization .. xNational Survey Results .. xFuture Trends .. xiChapter 1 1 Chapter 2 The History of and Key Debates Over 9 Privatization of Corrections: A Historical Overview .. 9 The Debate .. 13 Chapter 3 Recent Research Regarding 21 Background .. 21 Costs .. 22 Inmate Services, Quality of Confinement,and Public Safety .. 29 Health Care .. 33 Additional Literature .. 35 Summary .. 37 Chapter 4 The National Survey of State prison 39 Background .. 39 Survey of Public and Private State Facilities .. 39 Reanalysis of Survey Data Controlling forFacility Security Level .. 52 Chapter 5 59 The Diminishing Returns on Privatization .. 59 The Future of Privatization .. 65 Appendix Guidelines for Contracting for a Private 69 Sources for Further 83 ContentsviiEmerging Issues on Privatized PrisonsTablesTable 1 Number of Persons Held in State or FederalPrisons or Local Jails, 1985, 1990 1997.

6 2 Table 2 prison Operating Costs, Fiscal Years 1980 1994 .. 3 Table 3 Private Adult Correctional Firms, December 31, 1998 .. 4 Table 4 Geographic Distribution of Privately OperatedCorrectional Facilities, December 31, 1998 .. 5 Table 5 Geographic Distribution of Privately OperatedCorrectional Facilities Outside the United States,December 31, 1998 .. 6 Table 6 Public Strategies for Private Prisons .. 14 Table 7 Financial Data for Corrections Corporation of America,1987 and 1997 .. 29 Table 8 Inmate Characteristics at Public Facilities at Midyear1995 and Private Facilities as of December 31, 1997 .. 41 Table 9 Characteristics of Private Facilities by Level of Securityas of December 31, 1997 .. 42 Table 10 Types and Rates of Participation in InstitutionalPrograms at Public Facilities at Midyear 1995 and atPrivate Facilities as of December 31, 1997.

7 44 Table 11 Persons Employed in Public State Facilities atMidyear 1995 and at Private State Facilities as ofDecember 31, 1997 .. 46 Table 12 Characteristics of Employment in Private Facilities,January 1 December 31, 1997 .. 47 Table 13 Major Incidents in Public Facilities (July 1, 1994 June 30, 1995) and in Private Facilities (January 1 December 31, 1997) .. 48 Table 14 Disciplinary Resources at Private Facilities,January 1 December 31, 1997 .. 50 Table 15 State Facilities Under Court Order or Consent Decree:Public Facilities at Midyear 1995 and Private Facilitieson December 31, 1997 .. 51viiiBureau of Justice AssistanceTable 16 Characteristics of Inmates at Public Medium- andMinimum-Security Facilities at Midyear 1995 andPrivate Medium- and Minimum-Security Facilities onDecember 31, 1997.

8 53 Table 17 Characteristics of Public Medium- and Minimum-Security Facilities at Midyear 1995 and PrivateMedium- and Minimum-Security Facilities onDecember 31, 1997 .. 54 Table 18 Types and Rates of Participation in InstitutionalPrograms at Public and Private Medium- andMinimum-Security Facilities .. 55 Table 19 Characteristics of Persons Employed in Public Medium-and Minimum-Security Facilities at Midyear 1995 andPrivate Medium- and Minimum-Security Facilities onDecember 31, 1997 .. 56 Table 20 Major Incidents in Public Medium- and Minimum-Security Facilities (July 1, 1994 June 30, 1995) andPrivate Medium- and Minimum-Security Facilities(January 1, 1997 December 31, 1997) .. 57 Tables (continued)ixEmerging Issues on Privatized PrisonsExecutive SummaryThe state of corrections has come under attack by many during the pastdecade.

9 Many contend that the current state of affairs will not work in the21st century. Some argue that the public sector is incapable of handling thecomplex and changing dynamics associated with corrections, and there-fore more Prisons need to be handed over to the private sector; othersargue that private industry should not be a part of the public matter ofpenalizing offenders of crime. Although the private sector has had a longhistory of involvement in corrections, private Prisons make up less than 5percent of the current market. This study offers a review of the history ofprivatization, presents a review of relevant research on the Issues in-volved, and compares some of the major findings from the National Surveyof State prison Privatization, 1997, conducted by the National Council onCrime and Delinquency (1998) and the Census of State and Federal Correc-tional Facilities, 1995, conducted by the Bureau of Justice Statistics (1997a),on the benefits and costs associated with private- and public-managedprison private Prisons tend to house mostly minimum-security inmates,the findings from this report suggest that private Prisons operate muchthe same as public facilities.

10 Private Prisons offer only modest costsavings, which are basically a result of moderate reductions in staffingpatterns, fringe benefits, and other labor-related costs. No evidence wasfound to show that the existence of private Prisons will have a dramaticeffect on how nonprivate Prisons Trends in PrivatizationqIt is estimated that worldwide there are 184 privately operatedcorrectional facilities, which hold 132,346 the United States, a total of 158 private correctional facilities areoperating in 30 states, Puerto Rico, and the District of Columbia. Texashas the most facilities (43), followed by California (24), Florida (10), andColorado (9). Most private correctional facilities tend to be concentratedin the Southern and Western United 26 private facilities operate in 3 other countries, with Australia(12) and the United Kingdom (10) topping the revenues allocated to private Prisons and jails are estimated at$1 of Justice AssistanceqDespite rapid growth in the number of private correctional facilities,they represent only a small share of the entire correctional facilitiesmarket.


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