Federal Inmates Boost Private Prisons Industry

WASHINGTON – The Federal Bureau of Prisons is giving the private prison industry a boost by housing nearly 14 percent of its inmates in private facilities. The bureau now has about 24,000 inmates in private facilities, a 66 percent increase over the number of inmates housed in private facilities in 2000.

Less than 6 percent of state prison inmates are housed in private prisons. Prison rights groups and prison employee unions have criticized the government’s role in the private prison industry, stating that private prisons would otherwise be struggling to stay afloat among a flood of legal violations and litigation.

Such is the case of Correctional Corporation of America, which struggled to fill beds at its facilities until signing a contract with the government in 2000, according to reports. Roughly 18,200 federal inmates are now housed at CCA facilities, about 29 percent of the company's total inmate population. The population of private-prison inmates from state prisons, on the other hand, has dropped from about 76,800 in 2001 to 74,300 in 2004.

With federal inmate and detainee populations projected to increase dramatically, business for private prisons will likely improve. The number of federal inmates is expected to increase from its current population of 186,000 to 226,000 by 2010. With increased enforcement of immigrations laws, Congress included a provision in an anti-terrorism bill that calls for 40,000 more detention beds for illegal immigrants facing deportation.

Critics of private prisons claim the facilities profit from crime and benefit from the war on drugs. Some correctional officer unions claim the government is outsourcing jobs to companies that pay lower wages.

Private prisons have become a popular option for government entities, which can circumvent lengthy planning and regulatory procedures associated with building and operating a new prison by contracting the job to a private firm.