Tax Payer Revolt...We Must Take Back Control!!!

 How did we ever agree to “privatize” incarceration in the criminal justice system? Was this issue ever placed on a ballot for the public to vote on?

When an industry assumes control over an operation, regardless of what service, there is the  prime motivation…Profit!  

IT IS ALL ABOUT THE MONEY!  Under the NYSE listing CXW [Corrections Corporation of America] an historical analysis reveals the CCA had a stock price of $1 in 2000. The closing stock price was $31.66 on April 15, 2016.   Not bad.

CCA 4th Quarter Financial Results and Full Year Fiancial Results for 2015

4th quarter highlights: Profit increased 5.8% to $447.8 million from the previous year same quarter results.

Full Year Total Revenue: Total revenue reported was $1.79 Billion vs. 1.65 Billion in 2014.

Certainly does not look like the company has severe financial problems and in fact management is providing guidance for improved revenue for 2016.

Why is Colorado submitting to the threats from CCA to close the Burlington Detention Facility unless they receive an additional $3 million? 

Very disturbing…”I’m also encouraged by the many ways we’ve been able to help provide solutions to the challenges our government partners faced in 2015.” announced CEO Damon Hiniger.

Once again the Burlington Detention Facility in Colorado is facing the threat of closure by CCA [Corrections Corporation of America] because of declining inmate population. Back in 2012 Colorado injected $9 million into CCA coffers. Now they are back and want another $3 million, which has been approved in the face of opposition from both Republican and Democrat State Representatives.

Let’s examine some details:

# of inmates…580

# of employees…130 

CCA is threatening to close the facility in Burlington and move the inmates to other CCA facilities, which obviously must also be under inmate capacity. The company will still be receiving tax payer funding regardless of which facility the inmates are trasferred to!

Please do so! 

CCA also is compensated for prisoner  transportation under a subsiduary, so it is a win-win for them.

Or is there something much more important at stake for CCA? Lobbyist for CCA were successful to allow the company to transfer their property holdings into a REIT. In fact in the first quarter of 2013, the company saved $137.7 million income tax benefit related to this REIT conversion.

So tax payers paid again!!!

States such as Colorado agreed to a quota system that guaranteed payment for inmates at 90% capacity, so this would certainly explain the increased need for incarcerations. Must keep those beds Full! However with Colorado decriminalizing pot possession and use [new source of tax revenue] the unintended consequence was that there were fewer minor offences leading to incarceration.

Senators are concerned that this is the only big employer on the eastern plains so it must remain open!

HERE IS A SUGGESTION: EMPOWER THE PEOPLE! GIVE THOSE 130 EX-EMPLOYEES CONTROL OVER THE $3 MILLION POOL OF FUNDS, INSTEAD OF THROWING IT AWAY. LET THEM ORGANIZE AND WORK ON ESTABLISHING A VIABLE BUSINESS. PROVIDE SOME GUIDANCE AND SUPPORT!

                                                      YOU WILL NOT BE DISAPPOINTED!!!

Sources: Denver Post article “The budget writer’s action draws ire over tax dollars benefiting a for-profit prison” by John Frank and Jennifer Brown, CCA published financial statements, Source watch