For about 20 years, employees at the North Texas Intermediate Sanctions Facility went quietly about the business of housing hundreds of short-term parole violators.The story provides a litany of examples, all of which will be familiar to Grits readers, of counties investing in jail capacity beyond their own needs with the hope of turning a profit, then ending up holding the bag after their private "partner" walked away. My favorite quote: "You look back and ask why would you take on 30 years of debt on a two-year contract." No kidding! My second favorite quote in the story was from Marc Levin at the Texas Public Policy Foundation warning counties and municipalities that they could no longer count on ever-rising incarceration rates to fill speculative-built jails: "I would hope that counties and cities would do some population projections before they go forward with building these jails," he said. "Any business has to consider how a government's perspective might change. No one is entitled to assume that certain policies are going to remain in place."
The prison, a complex occupying almost an entire block at 4700 Blue Mound Road, now is vacant largely as a result of reforms aimed at reducing the state's penal system costs.
Starting in the early 1990s, Texas ignited an almost $3 billion prison building spree, turning to private prison operators to house inmates as the prison population swelled beyond the capacity of state facilities. Now, state, county and city budget cuts, a decline in crime rates, an older population, and penal and court reforms have all contributed to what some call a glut of inmate beds. Those factors have resulted in closed and half-empty prisons and jails.
They have also left local governments, which saw prisons as revenue and job-generators, scrambling to pay for facilities the state no longer needs.
That would have been good advice to have received 3-5 years ago. Today it almost seems cruel to warn them about moral hazard when everyone else's bad decisions seem to get bailed out. But as the city of Littlefield is finding, there's no one waiting in the wings to step in and buy up empty jail cells with no contracts attached to them. Jail-bed supply significantly exceeds demand statewide. With the exception of immigration detention, the bubble has burst. As has, hopefully, the "jail as profit center" myth among Texas county commissioners.
See related Grits posts:
- Private prison bubble bursting: Empty, speculative jails in Texas
- Privatizing Harris County Jail would save money by cutting guard pay, benefits
- Jailing for profit spurs inmate releases in two Texas counties
- When fewer inmates is a big problem: Perverse incentives at the McLennan County Jail
- Jones County pays for empty jail as detention bubble bursts
GFB, you worry too much. Our legislators will soon make sure the glut of empty prison beds are filled by enacting another slew of ridiculous laws for us to break. And failing that, they can just increase the misdemeanor crimes to felonies. Us seasoned Texans know the game...
ReplyDeleteMaybe the tide is turning, 7:33. There's not much left in the education, health care, and social services budgets for the lege to raid to sate their incarceration addiction. The public is not exactly thrilled about what they have done to those services already. I know where you're coming from, but everything has a limit.
ReplyDeleteYou are right, Scott. I'm afraid the poor taxpayers in Littlefield are stuck with this $10 million mistake. The deal they made to sell it appears to have fallen through.
ReplyDeleteThis is another instance of the fallacy of believing that current trends will continue unabated into the indefinite future.
ReplyDeleteI just checked into the municipal bonds investment market. It was interesting to see that of the top 10 riskiest U.S. municipal bonds four of them are here in Texas. It is municipal bonds that fund these jails and contract prisons. When cities and counties cannot pay the interest and/or principal on the bonds then they are in default. It is up to investors and taxpayers to stop funding/investing in this prison boom. As long as they are investing...the cities and counties will keep building speculative prisons/jails.
ReplyDeleteThe extreme incarceration rates are pulling people out of the work force, then destroying their likelihood to get re-employed, plus just adding more and more people to entitlement programs which is adding to this coutries economic problems. The cost to run prisons/jails is sucking the life out of whats left in America's faltering economy. There has to be a stop (or slow down)to the incarceration rates as part of America's recovery. It's just too big to ignore.
I just attended the TDCAA legislative update- trust me when I say the Legislature is worrking diligently to right this monstrous wrong- 53 new crims created ths session!!!! many were, in the words of rhe TDCAA presenters, solutions in search of a problem -crime rates- in general- have been on the decline for years, but an interesting phnomena concomitant with that drop has been a perceived sense of increased danger- I believe this is responsible for at least part of the glut in our prison beds- of course Mr.McDuffy hepled out in his own inimitable way as well- greedy county dads saw an opportunity to suck at the government tit-and, with the encouragement of our former governor, got their prayers answered- let them live with the consequences
ReplyDeleteAngela: Great post. Everything you said, I agree with 100%. Also, clicked on your profile and read some of your own blog. Great stuff! Whatever it is that you are experiencing with the system, I wish you luck. Thanks for the great writing.
ReplyDeleteAudrey, sorry. I could at least get your name right. I meant Audrey in my post. I don't know anybody named Angela, so don't know where that came from. :)
ReplyDeleteThanks Bob...OH! I mean Don. Hey Don, I've read your blog several times and found it informative...you come from a different perspective than I, yet appear to be a very fair and helpful person in the system. The system needs more people like you. Thank you for your well wishes!
ReplyDeleteRegarding Don's comment (10:18)I noticed that Littlefield's General Obligation Muni Bonds are listed as one of the top 10 Riskiest Muni's in the country. It is true that the city has raised property taxes, etc. to try to meet debt service. Ultimately I think they will have to default and the loser becomes the investors in the bonds. At which point, the city will probably not be able to float anymore bond issues. These bonds were not Treasury defeased therefore it is unlikely they will get bailed out. This is a clear instance where the investors and the taxpayers, citizens of that town, are the losers. I read an article where it said these constructuction companies that build the speculative jails/prisons look for small podunk towns, claiming it will grow their jobs and local economy. The construction company makes its fees up front, from the construction funds (muni bonds) thus making their profits, then they are out of there. Then the GEO's of the world come in and make a quick profit (or not) and at the end of their short term contract take their leave. Scott, forgive me, I think you have blogged on this several times, so I am probably repeating what you have already written.
ReplyDeleteRight, Audrey. But in the case of Geo in Littlefield, the contract with Geo apparently was contingent upon Geo's contract with Idaho. When Idaho pulled their prisoners amid scandals of suicides, escapes, and failure to provide the services contracted for, Geo baled as well, leaving Littlefield holding the bag. It is exactly the taxpayers who got stiffed. And you are right that they will probably default at some point, leaving it impossible to do other projects in the future. Numerous other communities have fallen prey to the pie in the sky promises of private prison companies. They pour millions into lobbying, and even our legislators from this area still sing the praises of "privatization". Hmmm
ReplyDeleteSmells like kick-back or just plain ignorance.
ReplyDeleteThe saddest consequence for the town is the inability to raise future money through bonds issues(once poorly rated). It stands in the way of any infrastructure needed, such as road construction and maintenance, school system, water systems, etc. Rather a death wish for these little townships.
Does anybody know if the "reduced prison population" numbers that the press keeps quoting includes the number of people who have been sentenced to State Jail? Are the numbers actually reduced or are they just being manipulated?
ReplyDeleteThe "prison" industry is a money making machine. Texas has a pretty high record of incarcerating innocents. I find it quite disgusting.
ReplyDeleteTaxpayers are footing the bill for wrongful convictions and then have to compensate the victims because of the bad decisions of lawmakers. I don't recall any of the people responsible for wrongful convictions having to account for their crimes, it seems the system is a little uneven. We have good people in the justice system and we have bad, but the scales seem to be tipped more toward the bad, how unfortunate for our children.
http://www.dallasobserver.com/2011-07-07/news/the-price-of-freedom/
http://ipoftexas.org/index.php?action=sonia-cacy
On this one, I am suprised that they haven't figured out how to gather DNA and place it at the scene of a crime to convict someone. It seems the next logical step in forced incarceration for a supposed wrong. Evil is evil and you can't fix that, just look at Hitler, Caligula and Nero. Some people will do anything to cover their backsides, especially when they participate in things they shouldn't.
http://www.angelfire.com/crazy4/texas/innocent.html
You can be rolling along minding your own business and have the rug jerked out from under you in a heartbeat.
I am assuming that we are returning to the "lack of humanity" theory that was presented by Hitler himself.
A Chinese man once told me that "White people eat their own!", he didn't comment on his own countrymen, though I am assuming that he is in the US because he didn't like his own country, or maybe he didn't have the opportunities there that he does here. The statement seemed ridiculous at the time, but sometimes I wonder...
When you see all the ugly in the world, it kind of makes you sad at the loss of your own innocence.