As the state of California continues to move forward with its plan to "recall" nearly 9,500 prisoners from out-of-state private correctional facilities, it appears the process doesn't bode well for Nashville-based Corrections Corporation of America's bottom line.
According to an analysis conducted by the Private Corrections Institute, the move represents a significant loss of revenue for the nation's largest private prison company. Here's an excerpt from the release, authored by Alex Friedmann, longtime CCA critic and president of the PCI (emphasis Pith's):
CCA failed to mention that the reduction in contract beds coincided with the California Dept. of Corrections and Rehabilitation’s realignment plan which intends to phase out all 9,588 out- of-state beds within 4 years. According to a CDCR report released last April, the realignment plan will “eliminate the use of all out-of-state contract facilities by 2015-16.”
The CDCR report noted that returning all California prisoners from out-of-state CCA facilities would “result in a reduction of $318 million” from the state’s general fund. The report specified that California’s out-of-state prisoner population will be reduced to 9,038 by 2012-13 – which has already occurred according to CCA’s recent press release – then to 4,969 by 2013-14; to 1,864 by 2014-15; and to 531 by 2015-16, with a complete phase out by the end of 2016.
PROTECTED ACTIVITY The state and the union shall not impose or threaten to impose reprisals on employees, to discriminate or threaten to discriminate against employees, or otherwise to interfere with, restrain or coerce employees because of their exercise of rights guaranteed by the Ralph C. Dills ACT MOU 5.03 section A
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