April 16, 2008
A Setback for Privatization
Privatization has met one insurmountable hurdle down the road at the New Castle Correctional Facility, where Arizona inmates have essentially exercised veto authority over being housed so far from home. The Indiana Department of Correction's prisoner-housing contract with Arizona has ended and, two major lockdown disturbances later, will not be renewed.
On the same February day that the private company that operates the New Castle prison was announcing that inmates would be returned to Arizona in April, the company was reporting to stockholders its fourth quarter and annual gains for 2007. Boca Raton, Fla.-based Geo Group Inc. said it had fourth-quarter earnings of $11.5 million and annual earnings for 2007 of $41.3 million.
The consequences of the inmates' return could reach well beyond the company's profit-loss future, raising questions about the future of the New Castle facility in particular and prison privatization in general…
LINK - Pal-Item.com (Palladium-Item - Richmond, Indiana)
