Private prisons demand states maintain maximum capacity or pay fees

[unhappycamper]

http://www.rawstory.com/rs/2013/09/20/low-crime-rates-bad-for-business-so-private-prisons-require-maximum-capacity/



Private prisons demand states maintain maximum capacity or pay fees
By Travis Gettys
Friday, September 20, 2013 12:44 EDT

Falling crime rates are bad for business at privately run prisons, and a new report shows the companies that own them require them to be filled near capacity to maintain their profit margin.

A new report from the advocacy group In the Public Interest shows private prison companies mandate high inmate occupancy rates through their contracts with states – in some cases, up to 100 percent.

The report, “Criminal: How Lockup Quotas and ‘Low-Crime Taxes’ Guarantee Profits for Private Prison Corporations,” finds three Arizona prisons must be filled to capacity under terms of its contract with Management and Training Corporation.

If those beds aren’t filled, the state must compensate the company.
The report found that occupancy requirements were standard language in contracts drawn up by big private prison companies.

[Atman]

1. No problem...just cut food stamps to pay for it.

Gotta make a buck!

[Demeter]

3. Exercise that "Eminent domain" clause

take the prison back, and shut it down, or convert it to white collar crime condos.

[Mopar151]

2. Sounds a lot like the "economics" of trash-to-energy

Backwards incentives and inside-out fee structures......