The Real Cost of Prisons Weblog

At this point, lawmakers are looking at the state prison in Yuma which now houses about 2,300 inmates, the Perryville facility which has more than 4,000 beds, and the Eyeman unit of the state prison complex in Florence which at last count had close to 5,000 inmates.

The proposal is likely to get a fight from Democrats — and not just on philosophical grounds.

Senate Minority Leader Jorge Garcia, D-Tucson, called the savings “funny money.” He cited studies done by an outside consultant for the state Department of Corrections which show that, when all elements are considered, it actually costs taxpayers less to have the state operate prisons than it would to have them run by private companies.

Senate President Bob Burns, R-Peoria, said he put little stock in that report, saying it was prepared during the administration of Democrat Janet Napolitano who never was a supporter of private prisons.

The idea of privately run prisons is not new. The state already contracts with private companies to house some inmates.

But those deals involve facilities that private companies build on their own, with the state paying a specific daily charge for each inmate housed there.

This would involve turning over already built — and paid-for — state facilities to private companies to operate, with the price the state pays based on bids received.

At last count, about 4,300 of the state’s more than 40,000 inmates were housed in private prisons in Arizona. Another nearly 4,900 are housed in private prisons in other states

Gov. Jan Brewer said she believes it is appropriate to house inmates in private prisons “in certain circumstances.”

The plan, scheduled for a vote today in the Senate Appropriations Committee, essentially builds on existing efforts by Republicans to plug the gap between anticipated revenues this coming year and expenses.

State sales and income tax collections have taken a nosedive as the national and state economies have gone into a recession, people are being laid off and consumers are buying less. GOP budget crafters are relying heavily on cuts to spending.

One new wrinkle is a plan to reduce state aid to cities and counties by up to $190 million.

Burns acknowledged that transfers some of the state’s fiscal problems onto local governments which have their own revenue issues. But he said the state’s problem is so big that it cannot afford to share as much as it has in the past in what it collects in vehicle license taxes.

Republican legislators have generally frowned upon a proposal by Gov. Jan Brewer to bridge the gap with a temporary tax that would raise $1 billion a year for three or four years. But House Speaker Kirk Adams, R-Mesa, said all options — including taxes — remain on the table.

Sen. Russell Pearce, R-Mesa, said lawmakers are looking at one other way to get more dollars: Hire back some of the auditors and collectors the state let go earlier this year from the Department of Revenue. How much that could raise, however, is debatable.

House Democrats have said more staffers could bring in $150 million. Kavanagh puts the figure at $50 million; Pearce said $35 million would be more realistic.

Kavanagh acknowledged that the size of the deficit could force lawmakers to adopt some accounting maneuvers that really do not solve the problem. These include taking certain expenses due in the coming fiscal year and pushing off payment into the following budget year, a move that technically “balances” the books as constitutionally required but does not actually cut spending.
http://www.svherald.com/articles/2009/05/20/news/state/doc4a13a7e8908d5390322661.txt

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Saving the state's budget: The Governor's plan
Balanced, realistic budget will preserve our critical services

Jun. 7, 2009 12:00 AM- Special for the Republic

Arizona's state budget deficit is one of the worst per capita in the United States.

With the new budget due in three weeks, Arizona has a deficit of roughly $4 billion, or 40 percent of last year's general fund expenditures.

We have so little cash that the state has to borrow millions just to pay monthly bills. The threat to vital services is so acute that a bold budget plan is absolutely critical to avoiding an economic catastrophe.

I have a plan that leads our state to the path of recovery, a plan that will bridge Arizona's troubled economic waters without destroying our schools, public safety, or the final safety net that sustains our most vulnerable populations.

Your state government is spending dramatically less. With my new fiscal year 2010 budget plan, roughly $600 million in cuts will be implemented, in addition to the $400 million in reductions I signed into law shortly after taking office.

This budget slashing is unprecedented in Arizona history. Thousands of state employees have lost jobs or have been furloughed. Services and programs have been curtailed. Any further significant cuts, however, would begin to unravel our public education, safety, health and/or corrections systems.

The majority of legislators seem unwilling participants in such recklessness, and I can assure you that I won't preside over the destruction of essential services within our great state.

Along with $1 billion in spending cuts, I propose using the maximum available of federal stimulus funds in fiscal year 2010, approximately $1 billion. My application of these funds will particularly protect K-12 education funding, our state universities, and our community colleges. Each of these systems are doing more with less money, but federal stimulus funds will help us bridge the gap without devastating our state's future - our children.

In addition to spending cuts and federal stimulus funds, my plan includes $1 billion in a 1 percent sales-tax increase, and roughly $1 billion in state long-term financing moves. My plan creates a spending cap to limit government when future revenues return, and cuts onerous taxes in the future to promote economic activity and job growth.

Some representatives and senators unfortunately propose nearly $1 billion in revenues that are completely unrealistic, including a plan to create a 50-year private contract to "operate" all Arizona prisons, including Arizona's death row. It also includes a large tax increase, but hides it by forcing cities and counties to be the tax collectors. The legislators' proposal also threatens the closure of numerous rural Arizona hospitals.

Only an authentic, balanced budget can bridge our financial-crisis gap, and only with additional revenues will we properly operate the vast majority of our general-fund operations: our schools, our prisons, and our critical health systems.

Jan Brewer is governor of Arizona.
http://www.azcentral.com/arizonarepublic/viewpoints/articles/2009/06/06/20090606brewer07.html