May 4, 2008
Detention Dollars: Tougher immigration laws turn the ailing private prison sector into a revenue mak
At the beginning of the decade, the private prison industry was in a tailspin. After several profitable years in the 1990s, companies contracting prison beds to public corrections agencies were losing revenue at an alarming rate.
Capital earned during the 1990s had been poured into a speculative prison-building boom that backfired. State corrections agencies, a mainstay of what was then a relatively new industry, had begun pulling inmates out. There were too many prison beds and too few prisoners.
[…]
Then, in early 2000, CCA announced a lucrative new contract. The Immigration and Naturalization Service was to house 1,000 detainees at the company's San Diego Correctional Facility in Otay Mesa, built as part of the late-1990s construction boom. The agency agreed to pay a per diem fee of $89.50 for every person held…
LINK - SignOnSanDiego.com (The San Diego Union-Tribune)
