HD7 - Privatization in Corrections
Executive Summary: With support of the Reagan Administration there has been increasing interest in recent years in turning to the private sector to provide programs and functions that were previously carried out by government agencies. Proponents of privatization believe that the private sector can provide better services at less cost than the public sector. Others disagree and the issue remains very controversial. One such traditional government function is the operation of adult correctional facilities. At the present time at least two agencies of the Federal Government, several state governments and a number of local governments have entered into contractual agreements with private prison firms. Private finance/construction packages are increasingly popular as an expeditious solution to problems of overcrowding and substandard living conditions. In Virginia, local governments have purchased certain specialized services such as drug treatment, mental health, and vocational/educational programs from private vendors. At the state level the Department of Corrections purchases services such as medical, management, and youth custody and treatment. Currently, a 40-bed pre-release center for adult males who are 90-120 days from parole is the only total facility operated by a private firm in Virginia. A request for proposal (RFP) for total private sector management of the State Penitentiary food service operation is currently being prepared with an anticipated release during the first quarter of calendar 1987. No full-custody primary confinement adult correctional facilities are owned or operated by a nongovernmental organization. Based-on review of available literature, contacts with knowledgeable and interested persons and a site visit to a privately operated adult facility, a number of potential benefits and problems have been identified. The opportunity for speed in the attainment of operable facilities is the primary advantage noted. Private finance/construction packages particularly facilitate the process. Private prisons offer increased flexibility to deal with changes in prison populations and special need prisoners. They also provide new sources of innovations and creative solutions to problems. The existence of private prisons might also create a competitive atmosphere in the corrections industry which could result in reduced costs. Further evaluations with time and experience will indicate if quality services at lower cost are provided by the private sector. Several potential problems were also recognized. Presently, Virginia laws and regulations leave open to interpretation the areas of delegation of authority and potential liability of government jurisdictions, officials, and employees for actions of the private prison operators. A specific definition of private prisons and their potential role for the state needs to be clarified. Questions arose that disproportionate attention to the profit motive could result in improper prison operations. A public-private liaison would be necessary to reduce the potential for an inadequately monitored or regulated facility. There is also the possibility that untested long-term financial arrangements may reduce competition and the government may become overly dependent on a very limited number of private contractors. The "privatization" movement has gained worldwide momentum during the 1980's. The current impetus for governments to shift public functions to private organizations is largely practical but the political philosophy behind it has been rooted in our history since the days of Jefferson and Hamilton. Jefferson believed that the role of government had to be limited to ensure individual rights and Hamilton believed just as strongly in a dominant, central government. The Hamiltonian view has prevailed for the past five decades but now the Reagan Administration has returned to the Jeffersonian view by cutting taxes and social expenditures and by initiating the transfer of federal responsibilities to the states and private enterprise. (*1) Prisons-for-profit, a controversial issue in the criminal justice system, is a reflection of the privatization trend that is sweeping across this country and world-wide. Many correctional agencies routinely contract with private firms for such services as food, health-care, educational, vocational and counseling services and pre-release and halfway house programs. The concept of private ownership and/or management of an entire prison facility is a relatively new response to pressures resulting from prison overcrowding and unconstitutional prison conditions. Interest in the transfer of financing, construction and operation of primary adult confinement facilities is increasing and further expansion is anticipated by correctional experts. In Virginia, many questions and complex legal and policy issues have arisen concerning the development and operation of private prisons. This study is prepared in response to House Joint Resolution #55 which requests the Secretary of Transportation and Public Safety to study the desirability, economic feasibility and practicality of using private incarceration institutions. ___________________________________ (*1) John R. Miller and Harold I. Steinberg, "The Age of Privatization." "World," May-June 1986, p.24. |
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