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Does it pay to privatize prisons?

By Sascha Cordner

http://stream.publicbroadcasting.net/production/mp3/wfsu/local-wfsu-980841.mp3

Tallahassee, FL – Tensions are still high regarding Florida's plan to start privatizing its prison system in South Florida. Public safety and oversight are just two of the issues that have proponents and opponents in hot debate. But, as Sascha Cordner reports, those factors pale in comparison to one widely debated issue: if private prisons are more cost efficient than public prisons.

Senate Budget Chief JD Alexander, who spearheaded the push to privatize the state's prisons, says it's expected to save the state about $60 million over a two year period. But, Florida Department of Corrections Spokeswoman Gretl Plessinger says unless they get proposals back from potential private bidders, they won't know how much the state is truly supposed to save. The state's Department of Corrections Secretary Edwin Buss says one way the state is already saving money is by only allowing one vendor to bid on the 30 prisons:

"It's very clear to me for this to work on a lot of different levels, you will need one bidder. The volume you'll get for the lower cost of the taxpayer, if it's going to save money, and the taxpayers do want it to save money, it will save the most tax dollars if there is one bidder."

One of the private vendors hoping to take over the South Florida prisons is Corrections Corporation of America, or CCA. Spokesman Steve Owen says their Government partners see the quality of the services they provide as a real value at a lower cost:

"For example, we provided innovative rehabilitation program opportunities to the inmates that are entrusted to our care, we can provide cost savings, not just in terms of operating facilities, but in terms of designing and building facilities, when that's a need.

Owen says in fact, they've got a history of working with different states to prove it.

"We've got a track record of 30 years now that demonstrates that the Government does find value in what we provide. We are delivering on the cost savings and in fact in the state of Florida, it's mandated by law that these contracts have to provide cost savings to the taxpayers."

The law requires private prisons to provide a cost savings of at least 7-percent. Blackwater River Correctional Facility is the newest of Florida's prisons run by GEO Group, another private vendor based in Boca-Raton. The facility has been open for less than a year, and houses about 2-thousand inmates. They're supposed to have saved the state money through new technological advances like digital cameras, and the type of shoes inmates wear.

But, the Labor union known as AFSCME claims an internal review by the Florida Department of Management Services has shown CCA and GEO group overbilled the state about 13-million dollars in 2005. It also showed they allowed the state to pay for guards that did not exist. Florida's AFSCME Legislative Director Doug Martin says the state needs to watch out!

"They really need to pay attention to past mistakes because they can get themselves in a lot of trouble."

GEO group declined to comment.

The Florida Police Benevolent Association, who's suing Corrections Secretary Edwin Buss over the privatization plan, says they don't see how privatizing prisons will be cheaper. FPBA Executive Director Matt Puckett says because there's no real evidence:

"Mainly the folks that are saying that are vendor driven think tanks. Like the Reason Foundation, ALEC, Florida TaxWatch. I think if you look into their funding, you wouldn't have to dig too deep to find out they're receiving some kind of cash payment from the vendors themselves. And, that's really where you have the evidence saying that they're cheaper. If you look at the legislature's own investigative body, they can't determine what model works. They're not comparing apples to apples."

Florida TaxWatch is a business-backed public policy research institute, who, with the National Reason Foundation, went before the Legislature this past session to talk about the potential benefits of a public private-partnership. The group's Vice President for Research Robert Weissert said they testified it would save the state about 30-million dollars a year, calling it Corrections 2.0.

"Our estimates showed that the state could not only save significant money, but could really improve outcomes by providing the services that people needed while they're part of the Corrections' system by focusing on beginning to end, alpha to omega, which not only ensures better services, but cheaper services."

The focus of their presentation was on the Northern and Southern most regions of the state. But, lawmakers decided they would not go ahead with Scott's plan of privatizing the corrections' systems health services, they would privatize ALL the South Florida facilities to save the state money. One deciding factor was reducing recidivism a selling point for the Governor.

"We also want to do a job of making sure that people that leave prison don't come back. And, if the private sector can do that, we have to look at that. Because it's taxpayer money, and we need to watch out how we spend taxpayer money."

But, Doug Martin with AFSCME says the Governor is all talk because there will be no cost savings.

"The taxpayers will have to foot the bill. Because long after, Rick Scott has gone back to Naples and is heading back to his mansion, we'll be paying for it."

Corrections Chief Edwin Buss says he is looking forward to seeing if privatizing prisons will help to reduce recidivism on a more efficient level and a cheaper one. In addition, he's going to be implementing some new policies that will help as well:

"Add more faith and character based initiatives and facilities here in Florida. They've been proven to reduce recidivism. Roughly 65-percent of all prisoners in the state of Florida has some type of addiction. They need to be held accountable for that, address it in substance abuse programming, So you're going to see a lot more substance abuse programming and evidence based programming."

Secretary Buss signed an agreement with the Department of Management Services to transfer oversight of the private prisons over to his office. Plans are still in place to start the privatization of the 30 state prisons in the South Florida region in January of next year.

Tune in next week to Capital Report as Sascha delves into last part of her three-part series to talk about the myths versus truths associated with privatizing prisons in Florida.