The Real Cost of Prisons Weblog

The 100-page audit by a Legislative Finance Committee review team said New Mexico pays significantly more than nearby states do for private-prison housing.

"Business decisions across two administrations may result in New Mexico paying an estimated $34 million more than it should pay for private-prison construction costs," the review said.

Corrections Secretary Joe Williams said higher operating costs are justified. He said New Mexico's costs cannot be compared to those for other states because prisoners here have more space, more programs and more security. Williams also said New Mexico's labor costs are higher, which increases the cost of building prisons.

The Corrections Department's official response said that "instead of looking at the use of privatization in such a negative manner, New Mexico should be proud that we are leading the nation and that it is working so well."

More than 40 percent of New Mexico's inmates are in private prisons. The total inmate population was 6,544 as of Wednesday.

The state pays nearly $69 a day per inmate at the private Lea County Correctional Facility in Hobbs and more than $70 at the Guadalupe County Correctional Facility in Santa Rosa.

The report said Texas pays $34.66 a day per inmate for private prisons, Colorado pays $50.28 a day, Oklahoma's rate is $41.23, Idaho pays $42.30 and Montana $54.58.

The LFC recommends New Mexico restructure contracts with the GEO Group, the state's major private-prison operator, for existing facilities. GEO also will operate a private prison being built at Clayton.

The state's contract for the Clayton prison will have a more equitable fee structure, and if the Hobbs and Santa Rosa contracts were renegotiated to conform with that, New Mexico could save nearly $5 million a year, the report said.

The report also said the state has paid for services it hasn't received. For example, the state in 2004 required GEO, formerly Wackenhut, to provide four mental health staffers for a sex-offender unit. The company billed the state more than $300,000 but did not hire new staff until 2005, the report said.

GEO was brought in to manage private prisons by former Gov. Gary Johnson, a trend continued by Gov. Bill Richardson.

The Institute on Money in State Politics said Richardson received more than $42,000 from GEO - more than it gave to any other candidate for a state office last year in the nation. The company gave other New Mexico politicians about $80,000 in the last election, it said.

GEO has contributed the maximum allowed to Richardson's presidential campaign, and individual GEO executives gave $9,000 to the campaign.

Williams, who worked for Wackenhut before becoming secretary, disputed any link between GEO's political contributions and higher private prison costs. A spokesman for Richardson said last year it was outrageous to imply any connection.

The LFC report also said the Corrections Department needs better oversight of health care for inmates, both to contain costs and to ensure adequate care.

The state is negotiating with Correctional Medical Systems of St. Louis to take over an inmate health care contract recently terminated with Wexford Health Services.

Pittsburgh-based Wexford was criticized for the quality of care. Williams said the state has recovered about $160,000 from Wexford for staffing shortages and improper billings.

He said his department will try to incorporate audit recommendations into the new contract being negotiated.

Under that contract, CMS cannot save money by leaving positions open and must have 268 full-time employees, compared to the 208 who worked for Wexford, said Tia Bland, a spokeswoman for the Corrections Department.

It's been estimated prison health care will cost New Mexico $34 million this year and $39 million in the fiscal year that starts July 1.

Two prison health experts who visited five New Mexico prisons in February and March said several lack enough doctors, dentists and optometrists.

Their report said some diabetics at the New Mexico Women's Correctional Facility in Grants weren't getting medication to fight infections as required by national standards; no medical staff was at the Penitentiary of New Mexico in Santa Fe during a March 9 visit; and nurses often spend time doing clerical duties because there are so few clerical workers. E.W. Scripps Co. C 2006 The Albuquerque Tribune
http://www.abqtrib.com/news/2007/may/24/nm-pays-more-private-prisons-report-
says/