Private Prison Promises Leave Texas Towns In Trouble

by John Burnett / U.S. National Public Radio

Morning Edition

http://www.npr.org/2011/03/28/134855801/private-prison-promises-leave-texas-towns-in-trouble

March 28, 2011

Second in a two-part series on private prisons

The country with the highest incarceration rate in the world — the
United States — is supporting a $3 billion private prison industry. In
Texas, where free enterprise meets law and order, there are more
for-profit prisons than any other state. But because of a growing
inmate shortage, some private jails cannot fill empty cells, leaving
some towns wishing they'd never gotten in the prison business.

It seemed like a good idea at the time when the west Texas farming
town of Littlefield borrowed $10 million and built the Bill Clayton
Detention Center in a cotton field south of town in 2000. The
charmless steel-and-cement-block buildings ringed with razor wire
would provide jobs to keep young people from moving to Lubbock or
Dallas.

For eight years, the prison was a good employer. Idaho and Wyoming
paid for prisoners to serve time there. But two years ago, Idaho
pulled out all of its contract inmates because of a budget crunch at
home. There was also a scandal surrounding the suicide of an inmate.

Shortly afterward, the for-profit operator, GEO Group, gave notice
that it was leaving, too. One hundred prison jobs disappeared. The
facility has been empty ever since.

A Hard Sell

"Maybe ... he'll help us to find somebody," says Littlefield City
Manager Danny Davis good-n aturedly when a reporter shows up for a
tour.
The 372-bed Bill Clayton Detention Center is a medium-security prison
that is currently sitting empty in Littlefield, Texas.
Enlarge John Burnett/NPR

The 372-bed Bill Clayton Detention Center is a medium-security prison
that is currently sitting empty in Littlefield, Texas.
Littlefield, Texas

Credit: Stephanie d'Otreppe /NPR

For sale or contract: a 372-bed, medium-security prison with double
security fences, state-of-the-art control room, gymnasium, law
library, classrooms and five living pods.

Davis opens the gray steel door to a barren cell with bunk beds and
stainless-steel furniture.

"You can see the facility here. [It's] pretty austere, but from what I
understand from a prison standpoint, it's better than most," he says,
still trying to close the sale.

For the past two years, Littlefield has had to come up with $65,000 a
month to pay the note on the prison. That's $10 per resident of this
little city.

A Resident Burden

Is the empty prison a big white elephant for the city of Littlefield?

"Is it something we have that we'd rather not have? Well, today that
would probably be the case," Davis says.

To avoid defaulting on the loan, Littlefield has raised property
taxes, increased water and sewer fees, laid off city employees and
held off buying a new police car. Still, the city's bond rating has
tanked.

The village elders drinking coffee at the White Kitchen cafe are not
happy about the way things have turned out.

"It was never voted on by the citizens of Littlefield; [it] is stuck
in their craw," says Carl Enloe, retired from Atmos Energy. "They have
to pay for it. And the people who's got it going are all up and gone
and they left us... "

"...Holdin' the bag!" says Tommy Kelton, another Atmos retiree,
completing the sentence.

The Declining Prison Population

The same thing has happened to communities across Texas. Once upon a
time, it seems every small town wanted to be a prison town. But the
20-year private prison building boom is over.

Some prisons are struggling outside Texas, too.

Hardin, Mont., defaulted on its bond payments after trying, so far
unsuccessfully, to fill its 464-bed minimum security prison. And a
prison in Huerfano County, Colo., closed after Arizona pulled out its
700 inmates.

According to the Bureau of Justice Statistics, the total correctional
population in the United States is declining for the first time in
three decades. Among the reasons: The crime rate is falling,
sentencing alternatives mean fewer felons doing hard time and states
everywhere are slashing budgets.

The Texas legislature, looking for budget cuts, is contemplating
shedding 2,000 contract prison beds. Statewide, more than half of all
privately operated county jail beds are empty, according to figures
from the Texas Commission on Jail Standards.

"Too many times we've seen jails that have got into it and tried to
make it a profitable business to make money off of it and they end up
fallin' on their face," says Shannon Herklotz, assistant director of
the commission.

The packages look sweet. A town gets a new detention center without
costing the taxpayers anything. The private operator finances,
constructs and operates an oversized facility. The contract inmates
pay off the debt and generate extra revenue.

The economic model works fine until they can't find inmates.

In Waco, McLennan County borrowed $49 million to build an 816-bed jail
and charge day rates for bunk space. But today because of the convict
shortage, the fortress east of town remains more than half empty. The
sheriff and county judge, once champions of the new jail, now decline
to comment on it.

Former McLennan County Deputy Rick White, who opposed the jail, had
this to say about the prison developers who put the deal together:
"They get the corporations formed, they get the bonds sold, they get
the facility built, their money is front-loaded, they take their money
out. And then there's no reason for them to support the success of the
facility."

Two of Texas' busiest private prison consultants — James Parkay and
Herb Bristow — declined repeated requests for interviews.

The Inmate Market

According to the Bureau of Justice Statistics, the total correctional
population in the United States is declining for the first time in
three decades. Among the reasons: The crime rate is falling,
sentencing alternatives mean fewer felons doing hard time and states
everywhere are slashing budgets.

Private prison companies insist their future is sunny.

A spokesman for the GEO Group declined to speak about the Littlefield
prison, but he sent along a slew of press releases highlighting the
company's new inmate contracts and prison expansions across the
country.

Corrections Corporation of America, the nation's largest private
prison operator, says the demand for its facilities remains strong,
particularly for federal immigration detainees.

New Jersey-based Community Education Centers, which has been pulling
out of unprofitable jails across Texas, issued a statement that "the
current (jail) population fluctuation" is cyclical.

One of the places where CEC is cancelling its contract is Falls
County, in central Texas, where a for-profit jail addition is losing
money. Now it's up to Falls County Judge Steve Sharp to hustle up
jailbirds: "If somebody is out there charging $30 a day for an inmate,
we need to charge $28. We really don't have a choice of not filling
those beds," he said.

Another place where they're desperate for inmates is Anson, the little
town north of Abilene, Texas, once famous for its no-dancing law.
Today, Jones County owns a brand-new $34 million prison and an $8
million county jail, both of which sit empty. The prison developers
made their money and left. Then the Texas Department of Criminal
Justice reneged on a contract to fill the new prison with parole
violators. The county's Public Facility Corporation that borrowed the
money to build the lockups owes $314,000 a month — with no paying
inmates. They've got a year's worth of bond service payments set aside
before county officials start to sweat.

"The market has changed nationwide in the last 18 months or two years.
It's certainly a different picture than when we started this project.
And so we're continuing to work the problem," Jones County Judge Dale
Spurgin says.

Grayson County, north of Dallas, said no to privatizing its jail. Two
years ago, the county was all set to build a $30 million, 750-bed
behemoth twice as big as was needed. But the public got queasy and
county officials ultimately scuttled the deal.

"When you put the profit motive into a private jail, by design, in
order to increase your dollars, your revenues, your profits, you need
more folks in there and they need to stay longer," says Bill Magers,
mayor of the county seat of Sherman, a leading opponent.

When the supply of prison beds exceeds the demand for prison beds,
there are beneficiaries.

The overcrowded Harris County Jail in Houston, the nation's third
largest, farms out about 1,000 prisoners to private jails. Littlefield
and most other under-occupied facilities in Texas have all been in
touch with Houston.

"It really is a buyer's market right now, especially a county our
size," says Capt. Robin Kinetsky, who is in charge of inmate
processing for the Harris County Sheriffs Department. "They're really
wanting to get our business. So, we're getting good deals."

Nearby, disheveled and unsmiling men are brought from a holding cell
to stand before a booking officer for their intake interviews. The
detainees are wholly unaware that they may soon become the newest
commodities of the volatile inmate market.

Aarti Shahani contributed to this NPR News investigation and report.


-- 
Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own
way and let people talk.) -- Karl, paraphrasing Dante.
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