Falling crime rates are bad for business at privately run prisons, and a new report shows the companies that own them require them to be filled near capacity to maintain their profit margin.
A new report from the advocacy group In the Public Interest shows private prison companies mandate high inmate occupancy rates through their contracts with states – in some cases, up to 100 percent.
The report, “Criminal: How Lockup Quotas and ‘Low-Crime Taxes’ Guarantee Profits for Private Prison Corporations,” finds three Arizona prisons must be filled to capacity under terms of its contract with Management and Training Corporation.
If those beds aren’t filled, the state must compensate the company.
The report found that occupancy requirements were standard language in contracts drawn up by big private prison companies.
One of those, The Corrections Corporation of America, made an offer last year to the governors of 48 states to operate their prisons on 20-year contracts.
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