The Real Cost of Prisons Weblog

To understand how well the prison business is faring and how immigrants are key to prison profits, you can listen in on the prison firms’ quarterly conference calls with major Wall Street investment firms. In early November, the country’s prison corporations reported soaring profits.

Corrections Corporation of America (CCA), the country’s oldest and largest prison corporation, boasted that it enjoyed a $33.6 million increase in the third quarter over last year, while earnings rose 15%. Formerly known as Wackenhut, GEO Group, the nation’s second largest prison company, saw its earnings jump 29% over 2007. Another private prison firm that imprisons immigrants is Cornell Companies, and it reported a 9% increase in net revenues in the third quarter.

This at a time when the rest of the economy is tanking. And these profits come straight from taxpayers' pockets, when we are already bailing out the financial industry.

Private prisons have been booming over the past eight years. From 2000 to 2005, the number of private prisons increased from 16% of all prisons to 23%. All of the increase in federal prisons has been in prisons owned or operated by private firms.

Immigrants are the fastest growing sector of the federal detainees and prisoners, and there’s hundreds of millions of dollars to be made by enterprising businesses and governments. The annual ICE budget for “detention and removal” is $1.2 billion.

In addition, the Justice Department’s Office for the Detention Trustee has hundreds of contracts with local governments and private prison firms that provide beds for immigrants. Both ICE and OFDT have special offices that oversee the outsourcing of its immigrant prisoners. OFDT even boasts of its “enterprise” system of detention.

Private prison companies aren’t worried that the Democratic Party sweep will mean that fewer immigrants are sent their way because of party promises of enacting comprehensive immigration reform. GEO Group’s chairman George Zoley on Nov. 3 assured investors: “These federal initiatives to target, detain and deport criminal aliens throughout the country will continue to drive the need for immigration detention beds over the next several years and these initiatives have been fully funded by Congress on a bipartisan basis.”

Not only has the DHS crackdown on illegal immigrants have bipartisan support in Congress, it was the Democratic Congress, say private prison chiefs, that increased the 2009 budget for the crackdown. “The President only asked for a program funding of $800 million,” noted Zoley, “It was the Democratic chairman [Homeland Security subcommittee] … that added another $200 million to this program.”

That would be Senator Byrd of West Virginia. Is this what we can look forward to from "more and better Democrats"?

Democrats should not be fattening profits of private prison operators on the backs of immigrants. End corporate subsidies to immigration jails!

http://immigration.change.org/blog/view/private_prison_profits_soar_through_
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