Arizona Fails to Renew CCA Private Prison Contract, Budget Crisis Cited

The effects of Arizona's budget crisis are being felt across the board, with massive cuts to seemingly every essential government service sector. From education to corrections and beyond, Jan Brewer and her GOP compatriots are chopping away at our state's infrastructure one piece at a time.

The fiscal nightmare in the Grand Canyon State is resulting in work furloughs, potential lay-offs in the public safety sector, and spending slashes, with more gap-closing measures expected to be handed down at any time. The Department of Corrections is at great risk of losing valuable resources and personnel as budget cuts mean less money to pay existing officers, train new officers, update deteriorating facilities or provide inmates adequate care. All of this means less safety, less service and less benefit to the corrections community as a whole.

The head of Arizona's Department of Corrections, Charles Ryan, lamented publicly in October of 2009 the risk that comes with a proposal that would release up to 11,000 inmates from state prisons. According to Ryan, many of the inmates qualified to be released under the October 2009 proposal would be violent offenders, and pose a significant danger to society at large.

In December 2009, Brewer suggested D.O.C needn't worry about the October 2009 budget proposals, and that the under a new proposed budget, the "7.5% cuts would not affect AZ DOC." However, rumors still circulate, and the reality is budget cuts will most certainly impact Arizona's DOC in some manner, as they always do. DOC Interim Director Ryan does, however, seem to be in favor of the Governor's propsal to simply return many non-violent illegal immigrants currently incarcerated in Arizona to Mexico, a move he claims could save tax payers millions. However, after being turned over to ICE (federal immigration services) and deported, many of these inmates/illegal aliens will simply cross the border again, and often re-offend immediately.

Recent fears also include talk the state will resort to handing out IOU's in lieu of pay to state employees, beginning sometime in the coming weeks. State Treasurer Dean Martin suggests the move is unavoidable. The Governor claims these measures won't affect corrections, but not everyone is convinced.

Martin also suggested at a press conference, held in Phoenix in early January 2010, that half the state's budget crisis could, and should, be immediately remedied by the Federal government writing a check totaling $1 billion. Martin insisted that Federal law promises to reimburse states for housing illegal aliens convicted of crimes.

In Arizona, illegal immigration has a profound impact on the state prison system, and Martin was not subtle in directing his press conference-turned-collections-attempt at now-Homeland Security Secretary, former-Arizona Governor, Janet Napolitano. Dean Martin denied that the plea was merely a publicity stunt, instead referring to Federal law he said entitles Arizona to the funds.

More evidence of Arizona's financial contraints and cut-backs, the state is not renewing an out-of-state contract with private, for-profit prison operators, Corrections Corporation of America. Under a contract set to expire in March, CCA currently houses many inmates for the state of Arizona in a 750-bed facility called the Huerfano County Correctional Center. The privately-run, government-cooperative facility is located in Walsenburg, Colorado. CCA also houses Arizona inmates in a "state of the art" prison in Oklahoma, called the Diamondback Correctional Facility.

In an email Friday, CCA Communications Director, Steve Owen, stated "It is our understanding, from the proposed budgets, that Arizona plans to return all inmates from out-of-state. We have received notification from the State regarding their intent to return inmates from Huerfano. We have not yet received word about if/when the Diamondback contract will be impacted."

On the subject of what will happen to the inmates currently housed in the Huerfano facility, Owen simply remarked that CCA was under the impression Arizona was working to "bring new capacity online in-state", and suggested Arizona officials the more appropriate source for specifics.

The Colorado facility will sit idle following the March transfer, and this has some investors nervous. Though CCA stock fell slightly this week, down at least 24-cents a share at one point, Owen was optimistic about the future of the Huerfano facility, citing it "a state-of-the-art facility".

The question remains what Arizona plans to do with 750-plus potential inmates they previously has "tucked away", and another potential 2160 from the Diamondback facility if that contract fails to renew. Even as rumors of lay-offs, early release of inmates and prison closures circulate, the state is apparently planning to construct at least one new facility.

Owen touched on this, stating CCA planned to continue working with Arizona on "building/operating prisons in-state, for which we obviously have an interest in competing."