Attorney General Eric Holder unveiled new policies on Monday to address the low-level, nonviolent offenses that he argued keep too many Americans locked away “for no truly good law enforcement reason.” Drug laws and mandatory minimums have driven a 700% spike in the prison population over the past few decades, leading many states to literally run out of jails. The result is an unusual problem with a controversial solution.
With far more prisoners than prison cells, states are turning to corporations to pick up the slack—with profound implications for criminal justice reform. In the 1980s, for-profit prisons began winning contracts to operate entire jails for the first time. Politicians in both parties responded to prison crowding with private prisons: The industry grew by 1,600% over a 20-year period ending in 2009. Today, one out of six federal prisoners is in a for-profit facility, according to ACLU data. Industry executives argue their prisons are efficient and necessary.
Corrections Corporation of America (CCA), the largest private prison company, imprisons about 80,000 inmates across 16 states. The company says it combines “the cost savings and innovation of business with the strict guidelines and consistent oversight of government.”
Many independent analysts disagree. After reviewing a battery of studies on cost and effectiveness in the industry, researchers from the University of Utah concluded in a 2007 report that any cost savings “appear minimal.”
Cutting more than costs Whatever the savings, the public does not necessarily benefit when private prisons are run on the cheap. In May, the Southern Poverty Law Center and the ACLU filed a suit alleging that a Mississippi private prison is systematically mistreating mentally ill patients, (including denying them adequate food and medical care).
Florida, which recently rejected a plan to transfer over 20 state prisons to private companies, has found that some private prisons cut health care services by as much as 50%, raising concerns about safety and mistreatment.
After surveying those kind of tradeoffs, The Week magazine concluded last month that “as bad as state-run prisons can be, private prisons ultimately pose a greater threat,” since “they exist solely to make a profit off of incarcerated individuals.”
That profit motive could also impact the renewed national debate about sentencing reform.
Selling punishment In many states, private prisons have grown into a powerful employer and business lobby. Between 2003 and 2010, Corrections Corporation of America spent over $14 million on lobbying in over 30 states. For years, the company has also worked with ALEC, the conservative advocacy group, which backed legislation for harsh sentencing and mandatory minimums at the state level. As the Washington Monthly recently noted, ALEC has “probably contributed more to the spread of mandatory minimum legislation in the states than just about any other single source.” (And CCA is not alone; the top three prison companies have spent $45 million on campaign donations and lobbying over the past decade.) ALEC has recently softened its support on mandatory minimums somewhat.
Despite the lobbying activity, CCA argues that it does not actually have a stance on the wisdom of more or less prison as a policy matter.









