Private Corrections Industry

The prison population in the U.S. is growing and local, state and federal government agencies are increasingly looking to private companies for assistance in the construction and management of adult and juvenile treatment and/or correctional facilities.

Industry FAQs

1. Can private companies legally run prisons? Isn't that authority reserved for federal, state and local governments?

The legal authorization for private companies to run a prison is typically established on a state-by-state basis. Usually legislation is introduced which describes the scope of work for a private operator and any limitations, such as whether another state's inmates can be housed in the facility. The legislation typically amends sections of the penal code to define the level of inmate eligible for placement in private facilities, the type of services to be provided, the department or agency charged with monitoring the private operator, etc. Those areas not addressed legislatively are frequently addressed in the contract with the private operator.

2. Are wardens and correctional officers in private prisons subject to the same laws and standards of conduct as corrections officials at public facilities?

Standards for private facility wardens and guards are generally defined contractually. Usually states require private operators and their staffs to comply with state correctional policy, procedures and standards of conduct.

3. Can guards in a private prison use force? Is it legal to delegate the use of deadly force to the private sector?

The delegation of the use of force in private prisons varies from state to state. The level of force private correctional officers can use is defined contractually, as well as legislatively.

4. What type of discipline is used in private facilities?

The vast majority of private facilities discipline inmates the same way as public facilities. They follow state-defined and codified disciplinary procedures specified in its contracts.

5. Do private prisons have the manpower to stop a riot?

Depending on the nature and size of the disturbance, most prisons, both public and private, don't have enough manpower on duty to immediately stop a major disturbance. However, the physical security of the facility, coupled with the staff on duty, is sufficient to contain a riot until assistance arrives. All prisons establish mutual aid agreements with local law enforcement to provide rapid perimeter containment on the outside of the main fence. Most private operators, including Cornell, have regional quick-response tactical teams that can be deployed. All facilities call in off-duty staff during a riot. Finally, private operators, through contractual provisions, typically have support agreements with nearby state prisons, allowing deployment of any available state staff to assist.

6. Do private prison guards respond to escapes? Who pays for manhunts?

The rules vary. Cornell follows state guidelines when responding to escaping inmates and uses the force necessary to protect the community and prevent the escape. In some cases, we can pursue an inmate as long as we have a direct line of sight. Since the private operator is also typically a local taxpayer (and therefore provides local tax revenues), the private operator is entitled to the same use of law enforcement as a local citizen. In some contracts, private operators can be required to provide reimbursement for the costs of recapture of an inmate. However, this is typically only when such a provision is specifically included in the private operator's contract and their related fee.

7. Who pays the court costs for prisoner lawsuits?

Private prison operators pay the cost of prisoner lawsuits arising from employee actions. Sometimes private operators are named in lawsuits that arise out of the state's actions or policies. While we pay for our own legal representation, the state typically pays for the majority of the legal defense. Local court and prosecution costs resulting from crimes committed by inmates in prison are handled a bit differently. Because private operators, unlike states, pay local taxes, criminal court and prosecution costs are usually offset by the tax revenues.

8. Aren't most communities across the country opposed to private prisons?

No. Smaller communities - generally those with fewer than 25,000 residents and with one-dimensional economic bases or decreasing populations - often support private prisons. Privatized facilities often pay property taxes, create jobs and purchase products and services locally. Larger communities usually have a stable economic base and only a small percentage of the population will measurably benefit from a prison. These are the communities that typically oppose prisons of all types, both public and private. Conversely, the sitting of prisons in a rural area, often results in communities growing around them and the two become good neighbors. No community has encouraged the removal of a Cornell institution once it has been sited.

9. How do communities react when a prison or juvenile correctional facility is opened in their neighborhood?

The majority of correctional facilities are not located in densely populated neighborhoods. But it’s worth noting that Cornell facilities have excellent 24-hour security, which may actually increase the level of security in the surrounding areas.

10. Do private companies spend more or less than government agencies when building a facility?

Private operators are generally able to build facilities more rapidly and with less money due to their ability to compete in the open marketplace for greater savings and efficiencies.

11. Do private companies spend more or less than government agencies in operating a prison?

Private operators typically spend 10 to 15 percent less than government agencies to operate a prison and provide a cost-effective, results-driven tool for the public sector. Private firms save money by obtaining the best prices for supplies and equipment on the open market and through modern design innovations.

12. What type of training do Cornell employees receive?

All Cornell employees are trained in accordance with national standards set by the Commission on Accreditation for Corrections, a branch of the American Correctional Association. Some states have training requirements other than those prescribed by the Commission, and in those areas Cornell trains to those standards.

13. Are private corporations putting profit motives ahead of public interest?

As a publicly traded company, Cornell investors buy our stocks not just for the profit made on a facility, but also for the ability to "grow" that profit well into the future. The only way to successfully add more programs and grow profits is to have the highest quality programs that generate contract renewals and new contracts. Cornell addresses this by creating a culture of accountability. We ask the inmates and clients we serve to act responsibly and hold them accountable for their behavior. Similarly, we establish company principles and values and invite our peers and business partners to hold us accountable for our actions. We challenge competitors, correctional officer unions, state departments of correction and even legislators and governors to put the public interest first.

14. In trying to make a profit, aren't private corporations motivated to keep offenders behind bars longer than necessary?

Private operators have no control over when offenders leave a facility. Our facilities are integrated into the state and federal correctional systems. Therefore, government employees calculate release dates, authorize inmate transfers to other facilities and approve all disciplinary decisions regarding the extension of inmates' stay by reducing their "good time." In addition, Cornell operates many pre-release programs, so there is no financial incentive for the company to keep inmates incarcerated longer than necessary.

Additionally, private operators stay in business by offering cost-effective and proven rehabilitation, education and vocational services. Because private companies only manage approximately seven percent of all prison beds, we do not need or want "repeat" business to grow. If an inmate does well after leaving our facility, our services will be more valuable to the government and thus our business will increase.

15. Cornell is trying to make a profit. Won't it cut corners in building and operating a facility and in doing so jeopardize public safety?

Cornell's construction is as safe and secure as comparable security levels of government construction because cutting corners in building facilities would be "penny wise and pound foolish." Inefficient design and poor construction can increase both staffing levels and maintenance costs. Moreover, cost cutting that jeopardizes public and staff safety will likely result in court action and any savings initially achieved will soon be consumed by legal defense, settlement and judgment costs.