Report grades Florida's privatized prisons

Bill Cotterell:
Report grades Florida's privatized prisons

Just as the state reshuffles some of its contracts with the private prison industry, we get a report that says maybe the whole business is not such a good deal.

The Florida Center for Fiscal and Economic Policy says you can't really tell whether the six prisons run by GEO Group and Corrections Corporation of America operate 7 percent cheaper than the state Department of Corrections institutions. Its report also says the privateers' performance in education and rehabilitation - that is, in lowering recidivism rates - is at best a toss-up.

I'll admit I'd never heard of the FCFEP until the Florida Police Benevolent Association, the union that represents correctional officers in state prisons and therefore opposes privatization, told me about the report. But the research was done by three reputable analysts with years of experience with state budgeting, two of whom previously worked with Florida TaxWatch, the respected local policy study group.

"Privatization of prisons, as reflected in state law, is expected to operate at lower costs and produce lower recidivism rates, compared to prisons operated by the state," said the FCFEP. "But with over a decade of experience, there is no good evidence to conclude that Florida is getting the results that it expected and as the law requires, both in terms of cost and rehabilitative impact on offenders."

On paper, the bottom line looks good. FCFEP said that, as of Oct. 1, 2008, there were 7,725 inmates in the six privately run prisons, at a cost of $133 million a year. That averages out to $17,216 per inmate, or about 9 percent less than the state average of $18,980.

But numbers don't indicate who is housed in these places.

The researchers found that "those who are more costly to handle," such as the most dangerous offenders and those with severe medical conditions, are usually in state-run prisons. Also (and this is a plus for privatization) the state tends to have older buildings lacking some of the efficient design features that allow private prisons to do it cheaper.

But more importantly, it's hard to compare public and private prisons because of things like location, size, and the age and the type of inmates housed in them. When he headed the Department of Corrections in the 1990s, the late Harry Singletary told me that if he could pick his prisoners - skim the 19- to 25-year-old nonviolent offenders who want to turn their lives around - he could run prisons 10 percent or 15 percent cheaper.

It's not that the private prisons get the best of a sorry lot. But for years there have been auditor reports and investigations by the Department of Management Services inspector general, alleging that they make money the old-fashioned way - by skimping on staff and programs as much as possible.

As for recidivism, the FCFEP report says academic, vocational and substance-abuse programs are not adequately measured. It cited a 2003 state study that found "no statistically significant differences in recidivism rates" between offenders coming out of public or private prisons.

"Florida's experience with privatized prisons raises serious questions about whether the taxpayers are getting their money's worth," said the FCFEP.

Jim Baiardi, head of the PBA's correctional officers chapter, said the study "confirms what the Florida PBA has been saying for years - private prisons do not save money nor do they have an impact on recidivism." That's not precisely what FCFEP said; it said the improvements can't be documented, but it's close enough - given the state's checkered history with privatizing in so many areas.

Meanwhile, DMS last week announced plans to award new prison contracts at four of the six private prisons. Corrections Corporation of America will keep its Bay County contract and will pick up operation of the Graceville and Moore Haven prisons now run by GEO.

But CCA lost the Gadsden County women's prison operation to a new player, Management & Training Corp. What this means for the jobs of Gadsden employees is not clear.

Meanwhile, privatization marches on, needed or not.

Department of Corrections figures last week indicated the state has a capacity of 106,510 prison beds, with a population of 101,933 inmates - space for 4,577 new prisoners. Even holding it at 99-percent capacity, it has room for 3,512 more inmates.

But the Senate version of the budget calls for opening Blackwater River Correctional Facility as a privately run prison with space for about 2,000 men. That figure is a bargaining chip in House-Senate budget negotiations.

Despite a state crime rate hitting its lowest point in 39 years, despite a surplus of state-owned cell space, despite persistent doubts about the cost-saving and rehab value of privatizing, the Senate budget proposes to add a private prison. Maybe senators expect the crime rate to start going up.

Or maybe it's just good lobbying by GEO, which is negotiating with DMS for the contract to run the Santa Rosa County lock-up business.

Contact Senior Political Writer Bill Cotterell at (850) 671-6545 or at bcotterell@tallahassee.com