This year, Corrections Corporation of America (CCA) is celebrating 30 years of profiting from incarceration. CCA was one of the pioneers in for-profit prison management, and today is the world’s largest private prison company.

A publicly-traded company, in 2010, CCA saw record revenue of $1.67 billion, up $46 million from 2009.

Here in Arizona, CCA operates 6 facilities, holding prisoners from Arizona, California, Vermont, and Hawaii as well as federal prisoners. CCA is one of the main beneficiaries of harsh immigrant enforcement and detention policies, such as Operation Streamline. And recently CCA was awarded its first contract to run an Arizona state prison. The first 1,000 beds are set to come online in 2014.

Next week, at its shareholder meeting in Nashville, TN, CCA will be toasting itself with lavish parties hosting rich investors and well-connected lobbyists.

Meanwhile, people around the country say, 30 years of abuse, mismanagement, and political influence peddling is nothing to celebrate.

There will be protests to accompany the shareholder meeting in Nashville, as well as solidarity actions in Washington DC, Ohio, and and here in Tucson, where the AFSC is organizing a rally and press conference on Monday, May 13^th from 4:00-5:00pm at the aptly-named DeConcini Federal Courthouse, 405 W. Congress.

As part of the lead-up to this event, we at Cell-Out Arizona offer our readers a three-part retrospective of CCA’s Dirty 30: Thirty Reasons to Kick CCA Out of Arizona. Enjoy!

CCA’s Dirty Thirty, Part I: The All-Arizona Edition

30. CCA Pays to Play in AZ.

CCA employs Highground Public Affairs Consultants whose president is Governor Jan Brewer’s top political advisor Chuck Coughin. Governor Brewer’s former spokesman, Paul Senseman, was previously employed by CCA, then returned to his lobbying job after leaving the Governor’s office. His wife is currently employed as a lobbyist for the corporation (‘Ties that Bind’ In These Times 6/21/10).

CCA has given money to Governor Brewers past campaigns such as Prop.100 and stands to benefit greatly from SB1070. As more undocumented people are turned over to ICE it is likely that they will be sent to one of CCA’s three detention facilities in Arizona (‘Governor Brewer’s CCA Ties Burn Like Neon’ Phoenix New Times 7/29/10).

And let’s not forget former Senator Dennis DeConcini, a member of the Arizona Board of Regents (which oversees state universities) who also sits on CCA’s Board of Directors. Despite his claims of being a friend to the immigrant community, DeConcini owns upwards of 8,700 shares in CCA or roughly $222,268. Dennis has come under fire from community groups pointing out his own hypocrisy as well as the conflict of interest posed by the competition for state funds between prisons and universities.

29. CCA Greases Palms in Pinal County

CCA pays the Pinal county government based on the number of inmates in one of its prisons in Pinal, as part of an agreement to operate in the county. Last year that amounted to roughly $1.4 million, according to county budget documents. The payments increase as more beds are filled — under the agreement, the county receives two dollars per day for each inmate held in the facility.

The money in part funds the county sheriff’s office, whose enforcement actions have influence over the size of the prisoner population: Under an agreement with the federal government, the office acts as an enforcement agent on immigration law, arresting violators and referring them to federal authorities, who make the ultimate decision on detention. (“Private Prisons Profit From Immigration Crackdown,” Huffington Post, 6/7/12).

28. CCA Guards Participate in Drug Raids on Public High Schools

Guards from Corrections Corporation of America recently assisted local and state law enforcement in two drug raids on public high schools. CCA operates a total of six prisons and detention centers in Pinal County, where the schools are located.

According to an article by Beau Hodai in PR Watch, it was not the first time CCA guards were used in this way, despite the fact that CCA staff are not considered ‘peace officers’ and have no training or certification to allow them to participate in law enforcement activities in Arizona.

After the first incident raised a huge public outcry, the corporation issued a statement that read:

“Our company strives to be a good community partner, and it was in that spirit that local staff responded to the request. Decisions like this are usually made at the facility level. CCA has since reviewed this practice and decided that facilities can no longer provide this type of assistance, for reasons such as liability. Unfortunately, many of the communities where we operate lack these types of resources, but we think this is the appropriate corporate level policy. We’ll continue to support our communities in many other ways.”

However, just a few months later, CCA guards just participated in ANOTHER drug raid on a high school in Pinal County, even after they publicly announced they would not do this. This time, astonishingly, they called it a “teaching lockdown.” After the first report of the raid surfaced, the website quickly removed CCA from the list of participating agencies.

27. More Immigrant Deaths at CCA’s Eloy Detention Center

The Bureau of Immigration and Customs Enforcement (ICE) is currently investigating two suicides that occurred in the space of three days at the Eloy Detention Center.

CCA’s Eloy Detention Center, which houses immigrant detainees, had the most deaths of any immigration detention center in the country. According to the ACLU, nine deaths have taken place in Eloy Detention Center–most were caused by inadequate or delayed medical attention (‘Lost and Ignored’ Tucson Weekly 2/11/10).

26. Who’s the Criminal?

A CCA employee pled guilty to drug charges in April 2010 for attempting to give prison inmates cocaine at the Central Arizona Detention Center in Florence (‘Arizona corrections officer caught buying cocaine for inmate’ ABC15 4/21/10).

25. Dead-End Jobs

While correctional officers working for state prisons receive $18-$20 an hour, CCA employees are paid less to do the same job, earning only $10-$12 an hour. CCA employees also receive 240 less hours of training than those employed by ADOC (‘CCA criticized by union, praised by Florence officials’ The Daily Currier 12/18/09)

24. What a Riot!

A prison employee suffered a broken nose and cheekbones as well as eye socket damage during a 30 inmate brawl over an Xbox owned by an inmate at Saguaro Correctional Center (‘Prison Employee seriously injured’ KITV4 7/30/10)

23. Deaths in Custody

A prisoner in CCA’s Saguaro Correctional Center strangled his cellmate while the prison was in lockdown in June 2010. Saguaro houses Hawaiian prisoners in Arizona and was also the site of the stabbing death by two inmates who now face the death penalty in Arizona although Hawaii has no death penalty. Prisoners claim the prison is ‘greatly understaffed.’ (‘HI inmates complain about CCA’ Hawaii News Now 6/17/10).

22. Widespread Prisoner Abuse

A lawsuit filed on behalf of Hawaiian prisoners in CCA’s Saguaro Correctional Center argued that officers stripped and beat prisoners, in some cases hitting their heads against tables while their hands were cuffed behind their backs.  Officers and even the warden threatened the prisoners and their families.  The officials then destroyed the evidence of the beatings, including videotapes, and faslified reports.  An additional suit was filed claiming that beatings and threats have continued in retaliation for prisoners filing the suit (“Private Prison Beatings Continue, Men Say,” Courthouse News, 7/27/11).

21. Unsafe Facilities

The Inspector General for the State of California (which houses prisoners in CCA’s Red Rock, LaPalma, and Florence Correctional Center in Arizona) slammed CCA for serious security flaws and improper treatment of inmates.  Inspectors found faulty alarms and malfunctioning security cameras, prisoners evading metal detectors, and discovered that CCA was not checking the arrest records of employees or screening out those with gang affiliations  (“Prison firm optimistic about Arizona bid despite incidents,” The Arizona Republic, 8/8/11).

Stay tuned for Parts II and III of CCA’s Dirty Thirty!

Documents recently obtained by the American Friends Service Committee (AFSC) show that the state of Arizona deliberately circumvented and ultimately repealed a state law requiring private for-profit prison corporations to demonstrate cost savings in their bids on new prison contracts. These records reveal that the state was aware that existing private prison contracts were not saving the state money–despite state laws requiring private prison contractors to deliver such savings.

One such statute, ARS 41-1609.01 (G), previously stated:

“A proposal shall not be accepted unless the proposal offers cost savings to this state.  Cost savings shall be determined based upon the standard cost comparison model for privatization established by the Director.”

In response to a public records request, the Arizona Department of Corrections (ADC) has confirmed that the “standard cost comparison model” referred to in the statute is the Department of Corrections Operating Per Capita Cost Report (Per Capita Cost Report).

For the past six years, these reports have consistently found that private prisons are not saving the state money, and in many cases, the private beds cost more than equivalent public beds. In fact, an AFSC analysis of ADC Per Capita Cost Reports revealed that between 2008-2010, Arizona overpaid for its private prison beds by $10 million.

Therefore, it would be impossible for a for-profit prison corporation to claim that its proposed prison would save the state money using this data as the basis of the assessment.  But instead of holding the for-profit prison corporations accountable or changing course, the Arizona State Legislature simply began circumventing the law.

The two most recent private prison contracts that have been awarded in Arizona— 1,000 additional beds at Geo Group-operated Central Arizona Correctional Facility (in 2003), and 2,000 additional beds at Management and Training Corporation (MTC)-operated Kingman Cerbat Unit (in 2007)—were deliberately exempted from the both the cost savings and quality review requirements.

The Department of Corrections itself provides the evidence:

“Laws 2003, 2nd Special Session, Chapter 5, Section 15, which authorized the one thousand beds awarded to Central Arizona Correctional Facility (GEO), stated that “Notwithstanding section 41-1609.01, subsections G and K and section 41- 1609.02, subsection B, Arizona Revised Statutes, the director of the department of corrections shall negotiate contracts or amendments to existing contracts for the construction of a total of 1,000 new private prison beds not previously authorized by the legislature, as soon as practicable…”

Similarly, Laws 2007, 1st Regular Session, Chapter 261, Section 8, which authorized the two thousand private beds awarded by contract to ASP-Kingman (MTC) – Cerbat Unit, stated that “…notwithstanding section 41-1609.01, subsections G and K and section 41-1609.02, subsection B, Arizona Revised Statutes, the department of administration shall reissue the revised request for proposals to contract for two thousand private prison beds.”

That one quaint little word, “notwithstanding,” means that the state legislature gave a green light to new private prison contracts without any accountability or expectation that they save money, run safe prisons, or provide a quality of service to the taxpayers footing the bill.

Rather than having to go to the trouble of inserting this exemption into the authorization language of future for-profit prison contracts, the state legislature recently decided to eliminate the cost savings requirement law altogether.

In the 2012 legislative session, the Criminal Justice Budget Reconciliation Act (CJBRA) repealed the sentence in the statute referring to the standard cost comparison model.

But they didn’t stop there.  The bill also repealed a requirement for the state to conduct a quality comparison assessment of public and private prisons.

This statute was the basis of a 2011 lawsuit filed by AFSC seeking to halt the award of a contract for 5,000 new for-profit private prison beds.  AFSC argued that the statute had been on the books since the late 1980’s, but that the statutorily-required assessment had never been completed. While the lawsuit was dismissed on a technical issue of ‘standing,’ the Department of Corrections was compelled to release the first-ever Biennial Comparison Review and cancel the 5,000-bed procurement.

Such a significant concession was deeply embarrassing for the Governor and the Department of Corrections.  The negative press generated by the lawsuit, on top of the scandal generated by the escapes from the Kingman private prison in 2010, amounted to a public relations nightmare.  And the delays and eventual cancellation of the RFP had to be infuriating for the prison corporations, who are investing serious money in their bids for a contract in Arizona.  The removal of the statute was not only necessary to prevent such hiccups in the future, it was also a demonstration of the power of these corporations and state government actors.  The message:  We’re not just above the law, we make the law.

In repealing these requirements, the state legislature has all but admitted that it simply does not care if private prisons are safe, saving money, or providing a quality service. This has only added to the growing pile of evidence that elected officials in Arizona are beholden to the for-profit prison industry. Over the past few years, it has been widely reported that for-profit prison corporations like Corrections Corporation of America (CCA), GEO Group, and Management and Training Corporation (MTC) pour millions of dollars into lobbying and campaign contributions annually in order to secure contracts at the state and federal level.

Several of the key players in the Arizona budget process have accepted contributions from lobbyists, political action committees (PACs) and other individuals/entities associated with for-profit prison corporations. For example:

• Governor Brewer’s campaign manager and top advisor, Chuck Coughlin. Coughlin runs Highground Consulting, which lobbies for CCA in Arizona.
• Paul Senseman, a CCA lobbyist, is also the “spokesman” for Brewer’s PAC
• John Kavanagh, Chair of the House Appropriations Committee, has accepted numerous campaign contributions from lobbyists associated with the for-profit prison industry.  Kavanagh was instrumental in the passage of the 2012 CJBRA.
• House Speaker Andy Tobin has raked in thousands of dollars from lobbyists and others associated with three of the for-profit prison corporations currently bidding on contracts in Arizona. This includes donations from the CEO’s of both GEO Group and GEO Care, as well as the MTC PAC.

Suspecting that the “invisible hand of the market” was behind the effort to remove the cost and quality assessment requirements, muckraking journalist extraordinaire, Beau Hodai, sent a public records request to Kavanagh’s office seeking documents related to the drafting and passage of the budget bill.  [Mr. Hodai, you may recall, was responsible for first revealing the links between CCA and the Governor’s office in relationship to SB1070 for In These Times.]

In response, Hodai received a two-paragraph letter, denying access to records relating to the bill and invoking “legislative privilege.” Because, after all, what good will it do to remove all accountability from the for-profit prison industry if snooping reporters can uncover records relating to influence working behind the scenes through public records law?

The timing of the repeal coincides with plans to award a new contract for 1,000 more for-profit prison beds. The contract for these beds is expected to be signed by September 1, 2012. Funding for the beds was approved in the same budget that removed the accountability provisions.  Many have questioned the wisdom of building prisons we don’t need (the state’s prison population is decreasing) and can’t afford.  After all, the state is barely beginning to come back from a crippling budget deficit.  And where was Arizona supposed to find the funds for a massive prison expansion, anyway?

Soon after the budget passed, the answer was revealed:  The legislature planned to pay for new prison beds by sweeping $50 million from a housing trust containing money from a settlement the federal government negotiated with big banks in the wake of the mortgage crisis.  The monetary aid was intended for states to assist people impacted by foreclosures.  So, essentially the legislature planned to pay for overpriced prisons we don’t need by stealing the money from victims of the housing crisis.  Classy.

On May 24, 2012, The Arizona Center for Law in the Public Interest and the William E Morris Institute for Justice filed a lawsuit on behalf of distressed homeowners to prevent the transfer.

So, to recap, private prisons are a waste of money and everybody knows it. But because the corporations pour millions into lobbying and campaign donations, Arizona politicians have adjusted state law to “look the other way”– thus paving the way for future contracts unencumbered by pesky accountability measures and ensuring that the state budget will continue to bleed millions into corrections at the expense of education, health care and social services.

Tune in next week for Part Deux, in which we reveal that the per diem rates for the state’s three oldest private prisons have increased an average of 14 % over 5 years and were recently renegotiated to guarantee 100% occupancy.

Yesterday, the state legislature approved a compromise budget they negotiated with the Governor. 

The budget agreement would:

• Fund 500 state-run maximum security prison beds we don’t need
• Fund 1,000 private prison beds we don’t need
• Pay for these prison beds by stealing $50 million from a mortgage settlement that was intended to provide relief for victims of the foreclosure crisis
• Remove the requirement to study the quality and cost of public vs. private prisons

In his defense of her “don’t bother me with the facts” decision, spokesman Matt Benson said the Governor believes the cost comparison and quality review is, “of little utility to us.”  Our Governor has just publicly stated that she has no use for facts if the facts stand in the way of her corporate backers’ agenda.

There could be no clearer proof that the legislature is putting the interests of their private prison pals ahead of kids, victims of the housing crisis, and the 99%. 

Consider the following: 

House Speaker Andy Tobin took in $5,990 in campaign contributions from individuals or groups associated with 6 different private prison corporations in 2009-2010 alone.  Keep in mind, the maximum individual contribution in Arizona in 2010 was $410 (this year it went up to $430).  The biggest spender was clearly GEO Group, whose lobbyists made 16 contributions worth $3,860.  He also got a hefty donation (the maximum allowed) by the MTC Political Action Committee.  MTC, you may recall, was responsible for the most spectacular prison break in recent memory, resulting in a two week multistate manhunt and the deaths of two people.   

John Kavanagh, Chair of the powerful House Appropriations Committee (which basically drafts the budget), is also on the take.  In the 2010 election cycle, he took in campaign donations from six different individuals associated with private prison lobbying firms, most of them representing GEO Group.  For more information, see our previous post on Kavanagh’s private prison “appropriations.” 

And then there’s our Governor, who has distinguished the state of Arizona in so many ways, including her famous “senior moment” during a televised debate, wagging her bony finger at the President of the United States, and being the puppet of the private prison industry.  As Beau Hodai reported for In These Times, the Governor’s campaign manager is Chuck Coughlin, whose consulting firm Highground lobbies for Corrections Corporation of America.  Her previous Chief of Staff was Paul Senseman, himself a lobbyist for CCA before and after his stint in the Governor’s office.  His wife is also a CCA lobbyist, and was actively lobbying for them while her husband was working for the Gov.  The Arizona Republic has reported on the gobs of cash that CCA threw at the Governor and her pet projects during the 2010 election cycle.

Once you know who’s actually running the state government, it helps to explain the completely irrational behavior of the people who are supposed to be in charge.  Why else would they choose to build prisons we don’t need instead of helping to restore funding for critical state functions that people depend on, like education, health care, and social services?

The Department of Corrections, State Auditor General, and even the Governor have admitted that our prison population is declining.  In 2010 and 2011 we saw the lowest growth rates on record, and the trend is projected to continue.  In other words, we don’t need more prisons.  But private prison corporations need more contracts in order to pay their CEO’s, keep their shareholders happy, fund their lobbyists martinis, and reward their government stooges with fat campaign contributions.

Only catch is, our teeny-tiny surplus doesn’t quite cover the $60 million price tag for more prisons.  Solution?:  Steal the money from victims of the mortgage crisis!  That’s right, the legislature is going to raid the money from the mortgage settlement and put it in the General Fund to pay for prison beds, even though the money is supposed to be used for “state foreclosure prevention programs, Attorney General Office costs and fees, and to remediate the effects of the foreclosure and housing crisis in Arizona.” 

I suppose this applies if you consider one of the “effects of the foreclosure and housing crisis” is that the lobbyists for homebuilders have less cash to spend on legislators than the private prison lobbyists.  Plus, more jobs for the prison construction firms and people who lost their homes can get ‘three hots and a cot’ in a private prison! 

See, it all makes perfect sense once you understand where their priorities truly lie.

Much has been made of Governor Brewer’s intimate ties to Corrections Corporation of America.  Her Chief of Staff, Paul Senseman, is a former CCA lobbyist, and his wife is currently a lobbyist for the company.  Brewer’s campaign manager and senior policy advisor, Chuck Coughlin, runs a consulting firm that also lobbies for CCA in Arizona.  Brewer accepted a total of $60,000 in contributions from people associated with CCA for her campaign and the tax increase initiative that she was pushing last year.  The scandal made waves after the passage of SB1070, raising questions about CCA’s role in drafting legislation that would potentially provide the company with millions more in contracts for immigrant detention facilities in Arizona. 

But Brewer is hardly the only powerful politician in Arizona with ties to this influential industry.  A Cell-Out Arizona investigation has revealed that John Kavanagh (R-8), Chair of the House Appropriations Committee, has accepted numerous campaign contributions from lobbyists and others associated with Geo Group, the nation’s second largest private prison company and one of the bidders for a contract to build and manage 5,000 new prison beds in Arizona. 

Now we know why Kavanagh is such a staunch supporter of private prisons.  He appeared last week on Phoenix Channel 8’s public affairs program, Horizon, debating the issue with Rep. Cecil Ash.  

In the 2010 election cycle, Kavanagh accepted at least 6 donations from lobbyists associated with Geo Group.  According to Beau Hodai’s investigation for In These Times,

“Geo Group employs consulting firm Public Policy Partners…While Public Policy Partners (PPP), an Arizona-based firm, has more than 30 Arizona clients, it only has two clients at the federal level: Geo Group (based in Florida) and Ron Sachs Communications, a Florida-based public-relations firm that, promotes prison privatization. PPP, as a firm, also appears to be an advocate for expanded use of private prisons. Federal lobbying records show PPP owner, John Kaites, lobbying on behalf of the firm on issues of “private correctional detention management.” 

Kavanagh’s campaign finance reports show that he accepted money from John Kaites as well as Ann Peralta Kaites, John’s lovely wife.  He received his-and-hers matching donations from another husband and wife team, Ken and Laurie Quartermain.  Ken is a lobbyist for Public Policy Partners.  Several other donations came from lobbyists with PPP.

It’s a shrewd move for Geo Group.  Since CCA has bought the Governor’s office, the best way to get those lucrative contracts is to buy off the guy in charge of releasing the money for them—the Chair of Appropriations and outgoing Chair of the Joint Legislative Budget Committee.

Governor Jan Brewer’s Commission on Privatization and Efficiency (COPE) announced it will be releasing a report recommending increased use of private prisons in Arizona as a way to address the budget crisis.

That’s right, a group of people handpicked by the Governor, whose top advisors are lobbyists for the for-profit prison industry, just recommended that we give more of our tax money to private prison companies.

And who are the “experts” the Governor has chosen for the task?

The Chair of the Commission is Mark Brnovich.  Mr. Brnovich served as a Senior Director of State and Customer Relations for Corrections Corporation of America from 2005-2006 and was a lobbyist for them in 2007.

Also on the Commission are Robert Burns, outgoing President of the Senate, and Kirk Adams, Speaker of the House.  Between 2008 and 2010, Adams received multiple campaign contributions from individuals associated with the GEO Group, and one donation from a person associated with CCA.

Burns is the Arizona Public Sector Chair of the American Legislative Exchange Council (ALEC), and oversees ALEC’s Scholarship Fund, which “reimburses” legislators for the travel expenses incurred in attending ALEC’s events.  At these events, the legislators are wined and dined by corporate lobbyists and are given a sales pitch on ALEC’s “model legislation,” such as SB1070.

Many of these same corporations make huge donations to the Scholarship Fund.  This is how ALEC is able to disburse on average over a million dollars in travel, lodging and other expenses annually to state lawmakers, while simultaneously reporting zero expenditures for “payments of travel or entertainment expenses for any federal, state, or local public officials.”  The donors to the Scholarship Fund are likewise able to remain anonymous and do not have to report this money as gifts to elected officials.  Is it just me, or does this smell a lot like money laundering?

For more background on ALEC, see Beau Hodai’s piece for In These Times and the two-part series from NPR’s Laura Sullivan on ALEC’s ties to CCA and its influence on Arizona legislation.

Yet another member of the Commission is Glenn Hamer, President and CEO of the Arizona Chamber of Commerce and Industry.  Corrections Corporation of America is listed as a corporate member of the Arizona Chamber at the “Board Level.”  According to the Chamber’s website, “Corporate membership provides varying levels of packaged benefits for membership within the Arizona Chamber.”  The Board Level requires dues and other fees upwards of $10,000.  This payoff entitles the corporation “higher levels of participation” and access to Chamber events.

It should be no surprise to anyone that this commission’s recommendations are to privatize everything.  Its members are clearly beholden to these industries and have personally profited from them.

What is shocking is that anyone in the state of Arizona would take their recommendations seriously or view them as anything but a thinly veiled attempt to further enrich themselves and their corporate sponsors.  The people of this state should be outraged that Brewer, Adams, Burns and their ilk would have the audacity to throw away millions more of our scarce tax dollars on an industry that has failed so spectacularly.