Corrections Corporation of America

Corrections Corporation of America

Type	Public
Traded as	NYSE: CXW
Industry	Prisons
Founded	Nashville, TN (1983)
Founder(s)	Tom Beasley T. Don Hutto Doctor (i.e., given first name) Robert Crants
Headquarters	Nashville, TN, USA
Area served	United States
Key people	John D. Ferguson Chairman of the Board Damon T. Hininger President & CEO Todd J. Mullenger EVP & CFO Steven E. Groom EVP & General Counsel Harley G. Lappin EVP & Chief Corrections Officer Anthony L. Grande EVP & CBDO Brian D. Collins EVP & CHRO
Revenue	$ 1.669 billion
Operating income	$ 313.95 million
Net income	$ 154.95 million
Total assets	$ 2.905 billion
Total equity	$ 1.442 billion
Employees	17,425 - June 2010
Website	Corrections Corporation of America CCA Communities CCA Jobs CCA Rehabilitation Partnership Prisons
References: The 2009 financial statements.[1]

Eden Detention Center in Eden, Texas

Corrections Corporation of America (NYSE: CXW) (CCA) is a company that owns and manages private prisons and detention centers and operates others on a concession basis. The company is the largest private corrections company in the United States and manages more than 60 facilities with a designed capacity of 90,000 beds. CCA, incorporated in 1983 by three businessmen with experience in government and corrections, is based in Nashville, Tennessee.^[2]

Company History

Corrections Corporation of America (CCA) was founded on January 28, 1983 by Tom Beasley, Doctor Robert Crants and T. Don Hutto.^[3] The first facility, the Houston Processing Center, was opened in 1984 and was contracted by the U.S. Department of Justice for the Bureau of Immigration and Customs Enforcement (formerly Immigration and Nationalization Service). The Houston Detention Center was built to house individuals who are awaiting a decision on their immigration case or repatriation.^[4]

In 1984, CCA also took over the operations of the Tall Trees non-secure juvenile facility, for the Juvenile Court of Memphis and Shelby County. Two years later, CCA built the 200-bed Shelby Training Center in Memphis, Tennessee to house juvenile male-offenders.

In 1989, the New Mexico Women's Correctional Facility was opened in Grants, New Mexico; the facility has 204 beds.^[5]

In 1990, CCA opened the first medium-security privately owned prison, Winn Correctional Center, in Winn Parish, Louisiana.^[6]

The Leavenworth Detention Center, operated for the U.S. Marshals Service, was opened in 1992, the 256-bed facility was the first maximum-security private prison under direct contract with a federal agency.^[7]

Overview of CCA

Founded in 1983, Corrections Corporation of America (CCA) owns or operates jails and prisons on contract with federal, state and local governments. CCA designs, builds, manages and operates correctional facilities and detention centers for the Federal Bureau of Prisons, Immigration and Customs Enforcement, the United States Marshals Service, as well as facilities across the United States.

CCA houses approximately 75,000 offenders and detainees in its more than 60 facilities and employs more than 17,000 professionals nationwide.

Recognition

CCA has been recognized as one of the 100 best corporate citizens by Corporate Responsibility Officer magazine.^[8] The national military magazine GI Jobs has highlighted CCA as a solid employer for veterans^[9]

GI Jobs Magazine named CCA as one of its "Top 50 Military Friendly Jobs" on four separate occasions.^[10]

American Correctional Association (ACA) has accredited 90% of CCA's facilities. ACA's Accreditation is a system of verification that correctional agencies and facilities comply with national standards promulgated by the American Correctional Association. Accreditation is achieved through a series of reviews, evaluations, audits and hearings.^[11]

Lobbying Efforts

Employees of CCA, along with 2,000 state legislators and 250 private and corporate citizens, are active members of the American Legislative Exchange Council (ALEC). ALEC, based in Washington, D.C., is actively engaged in criminal justice discussions in the U.S. Congress as well as state legislatures.^[12]

According to the Boston Phoenix, CCA spent more than $2.7 million from 2006 through September 2008 on lobbying for stricter laws.^[13]

In a 2009 editorial, political commentator Bill Maher is quoted, "Prisons used to be a non-profit business... The CCA and similar corporations actually lobby Congress for stiffer sentencing laws so they can lock more people up and make more money. That's why America has the world's largest prison population -- because actually rehabilitating people would have a negative impact on the bottom line."^[14]

In a 2010 Fox News Forbes on Fox panel discussion, Kai Falkenberg, Editor at Forbes Magazine, said “Private prisons do a better job for less money. There are studies that show that. And they lower the cost when there’s competition; they lower the cost of the state prisons.

In response to questions about their involvement in lobby efforts, CCA said it does not lobby lawmakers to increase jail time or push for longer sentences under any circumstance, noting that it "educates officials on the benefits of public-private partnership but does not lobby on crime and sentencing policies."^[12]

CCA spent $14.8 million lobbying the Department of Homeland Security, U.S. Immigrations and Customs Enforcement (ICE), the Office of Management and Budget, the Bureau of Prisons, both houses of Congress, and others between 2003 and 2010.^[12]

Controversy

In March 2010, The ACLU filed suit against CCA in Idaho alleging that guards are not protecting inmates from other violent inmates.^[15]

Newspaper stories and lawsuits have accused CCA of letting detainees die in custody as a result of poor health care. In January, 2009, the company paid $79,230 in a settlement to an undocumented Mexican immigrant who was injured in an automobile accident while being transported to Florence, Arizona.^[16] At least nine deaths occurred at a CCA facility in Eloy, Arizona.^[17][18]

As of December 1, 2010 the corporation was being investigated by the FBI for an incident at their prison in Idaho Correctional Center. A video released by the Associated Press that shows a prison inmate being beaten unconscious with guards watching not taking action. Because the matter is currently under litigation, the company has only said publicly that the release of the video is "an unnecessary security risk to our staff, the inmates entrusted to our care and ultimately to the public."

CCA says it is cooperating with investigators.^[19]

Inmate Rehabilitation

A critical aspect of America’s prison system includes reentry and rehabilitation programs for inmates.^[20] Such programs often include education, vocational training, addiction treatment as well as faith-based programs.

CCA offers basic adult education, post-secondary education, GRE preparation and testing and literacy programs to all inmates. According to national research, providing inmates with education and vocational programs can reduce the likelihood that offenders will commit new offenses upon release and return to prison.^[21]

In 1993, CCA launched the LifeLine substance abuse training program at the Metro-Davidson County Detention Facility in Nashville, Tennessee. The program is now available in 23 of CCA's facilities.^[22]

In addition to the reentry and rehabilitation programs prisons often offer inmates recreational and optional faith-based opportunities, which is an integral part of inmate rehabilitation^[23]

Facilities

CCA operations 63 prisons in 19 states and the District of Columbia.^[24]

The T. Don Hutto Residential Center, a former medium-security prison in Taylor, Texas, which, from 2006–2009, held immigrant detainees, under a pass-through contract with Immigration and Customs Enforcement (ICE) division of Homeland Security.^[25] On August 6, 2009, federal officials announced that T. Don Hutto would no longer house immigrant families.^[26] Instead, only female detainees will be housed there. In September 2009, the last families left the facility and were moved to the much smaller Berks Family Residential Center in Pennsylvania.^[27]

A CCA facility in Arizona was credited with helping Pinal County, Arizona, with being ranked No. 1 in a Money Magazine survey ranking the top 25 counties that have experienced the greatest job growth in the past eight years.^[28][29]

Private vs. public partnership

Discussions about the benefits and risks of public-private partnership for correctional facilities continue in the media, academia and think tanks.

According to a 2003 report, research showed that private prisons save money, as well as put pressure on the public prison system, constraining the escalation of costs^{[citation needed]}. Data showed that states using private prisons had more success in keeping public corrections spending under control than states with no private prisons^{[citation needed]}. This study was brought to you by the Corrections Corporation of America PR department.

States with less than 5 percent of their prison populations in private facilities experienced a 12.5 percent increase in expenditures versus an 18.9 percent increase in those states with no private prisons. States with larger percentages under private management had even greater savings with growth in expenditures at only 5.9 percent during the period studied.^[30]

In a 2008 study, evidence indicated that states can save a substantial amount of money if they use a shared system of both privately and publicly managed prisons. The research showed that during the study period (1999–2004), states were able to save up to $15 million on their yearly corrections budget by using at least some privately managed prisons. The study was overseen by James Blumstein, director of the Health Policy Center, Vanderbilt Institute for Public Policy Studies.^[31]

Economic benefits to local communities that house private partnership prisons include employment of hundreds of local workers, payment of property taxes and utilities, and purchasing goods and services locally.^[32]

Commentators and human rights activists have raised concerns about the morality of imprisoning humans for profit. Traded on the New York Stock Exchange, investors have an interest in keeping private prisons filled. Industry experts say a profitable prison must have a 90-95 percent capacity rate. In a 1990's report, Prudential Securities was bullish on CCA but noted, "It takes time to bring inmate population levels up to where they cover costs. Low occupancy is a drag on profits... company earnings would be strong if CCA succeeded in ramp(ing) up population levels in its new facilities at an acceptable rate".^[33]

Jenni Gainsborough of the ACLU's National Prison Project notes "[There is a] basic philosophical problem when you begin turning over administration of prisons to people who have an interest in keeping people locked up."^[33]

CCA lobbyists have worked to pass or defeat private prison legislation in many localities, including Texas, New York, Illinois and Tennessee.^[33][34]

California’s prison system is overcrowded, over budget and in crisis. According to a 2010 study by the Reason Foundation, prison privatization could ease the strain on California’s state government.^[35]

A comprehensive 2003 study by the Rio Grande Foundation surveyed prison expenditures in 46 states, and found that states with significant private prison populations save considerable amounts over those with no private prisons. For example, the study found that public sector facilities in New Mexico—which contracted out 45% of its correctional system under the administration of former Gov. Gary Johnson—spent $9,660 dollars per prisoner per year less than peer states that had no privately operated correctional facilities.^[36]

According to a 2009 study by the MTC Institute, a "research unit" of Management & Training Corporation, contracted prisons have been successfully used in the US for more than 25 years, and are a viable option to limit costs with¬out compromising service. In the last 20 years states have seen corrections budgets increase 315 percent, from $10.6 billion to $44.06 billion in 2007. With state budgets in crisis and corrections being the fifth largest state budget category, many elected officials are calling for improved performance in corrections systems. A 2009 survey of 30 state correctional agencies, many of which use privately operated correctional facilities; also demonstrated contracted prisons are lower in cost than the public sector by 28 percent. Privately contracted facilities, as of December 2008, now hold 7.8 percent of all adult inmates in the United States, up from 7.4 percent in June 2008, or about 1 in every 13 adults in prison.^[37]

References

1. ^ Financial Statements for Corrections Corporation of America
2. ^ "Contact Us." Corrections Corporation of America. Retrieved on February 1, 2011. "CCA 10 Burton Hills Boulevard Nashville, Tennessee 37215 ."
3. ^ CCA History
4. ^ Houston Contract Detention Facility
5. ^ New Mexico Women’s Correctional Facility, Grants
6. ^ Louisiana Department of Corrections
7. ^ Prison Information
8. ^ CCA Named One of the 100 Best Corporate Citizens in the U.S.
9. ^ Corrections Industry Offers Steady Growth and Stable Employment Opportunities
10. ^ Corrections Provider CCA Named To GI Jobs Magazine's Top 50 List of Military Friendly Employers
11. ^ ACA Standards
12. ^ ^{a b c} Who Profits From the Prison Boom
13. ^ http://thephoenix.com/Boston/News/73092-Freedom-watch-Jailhouse-bloc/?page=3#TOPCONTENT
14. ^ New Rule: Not Everything in America Has to Make a Profit, Bill Maher, Huffington Post, 07-27-2009.[1]
15. ^ ACLU suing Corrections Corp. of America, By Rebecca Boone, Associated Press, March 11, 2010
16. ^ [2]
17. ^ Bernstein, Nina (2009-08-21). "Immigrant’s Death Shows Hard Path to Detention Reform". The New York Times. http://www.nytimes.com/2009/08/21/nyregion/21detain.html?pagewanted=1&_r=1&hp. Retrieved 2009-08-21. 
18. ^ Officials Hid Truth About Immigrant Deaths in Jail, By NINA BERNSTEIN, New York Times, January 10, 2010
19. ^ "Idaho prison guards 'filmed watching inmate attack'". BBC News. December 1, 2010. http://www.bbc.co.uk/news/world-us-canada-11883673. 
20. ^ [3] What Science Says About Designing Effective Prisoner Reentry Programs
21. ^ Gerber, Jurg ; Fritsch, Eric. “Adult Academic and Vocational Correctional Education Programs: A Review of Recent Research.”
22. ^ Lifeline graduates first class
23. ^ O'Connor, Thomas P.; Perreyclear, Michael. “Prison Religion in Action and Its Influence on Offender Rehabilitation” Journal of Offender Rehabilitation, v35 n3-4 p11-33 2002
24. ^ CCA Facility Locations
25. ^ Don Hutto Family Residential Facility, ICE Fact Sheet
26. ^ T. Don Hutto detention center will no longer house immigrant families
27. ^ Final families removed from T. Don Hutto facility
28. ^ Where the jobs are
29. ^ Money ranks Pinal #1 for job growth
30. ^ Increased Competition in Department of Corrections Will Lead to Additional Savings, Virginia Viewpoint, June 2003, Geoffrey F. Segal, Virginia Institute for Public Policy
31. ^ [4]
32. ^ CCA prison has invested $32 million in community
33. ^ ^{a b c} US: America's Private Gulag, Ken Silverstein, Prison Legal News, 06-01-2000.[5]
34. ^ Matte Pulle, Texas Watchdog, 07-29-2009
35. ^ Gilroy, Leonard C. ; Summers, Adam B.; Randazzo, Anthony and Kenny, Harris. “Public-Private Partnerships for Corrections in California: Bridging the Gap between Crisis and Reform.” Reason Foundation. April, 2010.
36. ^ Matthew Mitchell. “The Pros of Privately Housed Cons: New Evidence on the Cost Savings of Private Prisons,.”Albuquerque, NM: Rio Grande Foundation, 2003.
37. ^ Nink, Carl. “ Privatization in Corrections: Increased Performance and Accountability Is Leading to Expansion.” MTC Institute, December 2009.

External links

	Tennessee portal
	Companies portal

• Corrections Corporation of America web site
• CCA Communities
• Inside CCA
• CCA Rehabilitation
• Comparing Private and Public prisons on quality, Reason Foundation
• Larger Inmate Population Is Boon To Private Prisons - WSJ.com
• How a Former Prisoner Took Down a Big Shot from the Private Prison Industry (and Cheney Pal) (Alternet.org)
• [6]