A Glimpse Inside the Industry's Influence in Florida

Florida's leadership is among the most aggressive in the nation in trying to bring private prisons to the state.  The governor, speaker of the house, former speaker of the house, and a host of Republicans in the legislature repeatedly attempted to force through what would have been the largest wholesale privatization of prisons in US history.  Though those measures failed, a battle is still being waged in court over the abuse of the political process by Republicans who tried to force the privatization by putting it into the budget and bypassing the committee that would have normally reviewed it.  The state is now also moving forward with plans to privatize 20 work release centers of the 21 that are still operated by the state, possibly because Governor Scott seems downright determined to put state employees out of work.  Lest you think I'm being unfair, a DOC spokeswoman said the state wasn't likely to save any money in the process, which would have theoretically been the only justifiable reason to do so.

The industry has fared rather well in the state despite the failure to pass the wholesale privatization, but not quite as well as it has with the federal government in taking responsibility for incarcerating immigration detainees.

The GEO Group has been particularly successful in both these arenas, due in large part to the amount of influence it peddles throughout governments.  This influence was apparent during the 2010 election cycle, when the company donated more than $800,000 to campaigns in Florida.  But what's not quite as easy to see is how these companies also gain political influence by having favorable people, and sometimes previous employees, placed in positions of power.  Take for example the chief of staff to young Republican superstar Marco Rubio, Cesar Conda.  Conda still maintains ties to a powerful lobbying firm in Florida that has lobbied for the GEO Group.  In fact, he still maintains partial ownership, and was paid between $50,000-$100,000 by the firm after he became Rubio's chief of staff..  So he's still being paid by companies like the GEO Group while working as the number-one guy to a US Senator.

So the GEO Group has revenues of nearly $2 billion per year, much of which comes from the federal government as payment for detaining immigrants.  It has spent more than $5 million in lobbying and political contributions in the past 8 years, a small fraction of their overall revenue, and in doing so has greatly expanded its role in the immigration detention system.  They also now have a paid lobbyist working in the office of a Republican Senator at the forefront of the immigration debate, in a state with major immigration issues.

In the state legislature meanwhile, President of the Senate Mike Haridopolous, one of the biggest proponents of the aforementioned failed privatization measure, has a really cozy relationship with a lobbyist as well.  He steered millions of dollars to a company that monitors juveniles for the state, after it had come to light that the company had failed to meet many of the terms of its contract.  But he went a step further - he removed the competitive bidding process as a last-minute budget move (sounds familiar...), assuring the company, which employes his close friend as a lobbyist, would maintain the contract.  The secretary of the state's Department of Juvenile Justice even wrote that "the use of this exemption from competitive procurement may not be in the best interest of the state."

Predatory Capitalism and Cronyism

Quick link here to an excellent article from Truthout.org that covers CCA, the largest private prison company in the country.  It's called "America's Top Prison Corporation: A Study in Predatory Capitalism and Cronyism," and it's fantastic.  Enjoy.

Effing Arizona.

Sometimes, a story comes along that really makes me wonder whether a lot of politicians just really don't give a shit about people at all.  And no, I'm not even talking about how North Carolina decided it would be a good idea to codify discrimination in its frigging constitution.  I'm talking about the great state of Arizona, whose political leaders have given up their charade of pretending to represent their constituents.

Now, you might say that's a bit of hyperbole, but how else can I explain the fact that, faced with evidence from numerous sources, including a government study, that demonstrated private prisons actually cost Arizona taxpayers more than government run facilities, the Arizona legislature decided to not only fund more private prisons, but to eliminate the requirement for the government to report on the efficiency and services it receives from the companies it contracts with to operate these money pits?

The industry is already exempt from public records laws that government agencies must adhere to, a distinction granted because it is comprised of private corporations (despite the fact that they perform an inherently governmental function).  So Arizona actually found what might have been the only way to further reduce transparency and oversight for an industry that's not required to report much of anything about how it operates.

In addition to removing that reporting requirement, the budget that just passed allocated $16 million for 1,000 new private prison beds, while taking $50 million from funds intended to help struggling homeowners manage their mortgages.  That $16 million might go to MTC, the company that operates the Kingman prison, from which 3 prisoners escaped in 2010 in one of the most highly-publicized prison escapes in years (largely because they murdered an elderly couple).  Or it could go to CCA, the company that, despite all its denials about its influence on the legislation, was in the room when SB1070 was drafted and stands to profit handsomely from it.

In yet another example of the corrupting and toxic influence of money in government, this budget proposal was really the handiwork of Governor Brewer's Chief of Staff, Chuck Coughlin.  Coughlin founded HighGround Consulting, the most powerful lobbying force in the state.  HighGround happens to represent the private prison industry.  A former CCA lobbyist, married to a current CCA lobbyist, also works on Brewer's staff.  And John Kavanagh, the chair of the House Appropriations Committee, is quite cozy with Public Policy Partners, a lobbying firm that represents the GEO Group.  So it naturally made sense for him to be the one to introduce the provision that eliminated the analyses of private prisons in the state.

I don't even think it's a question who Governor Brewer and the rest of the Republican establishment in Arizona represent.  And it's a damn shame.  Thank god I don't live there.

Update on CCA's Diabolical Scheme

Just wanted to give a quick update on the newest craze sweeping the private prison industry, CCA's diabolical scheme to connive state governments into selling prisons to the company and guaranteeing 90% occupancy of said prisons for decades to come.  Basically, they're looking to ensure the US remains the world's embarrassing outlier in its unnecessarily high rate of incarceration.  The proposal has been quickly and loudly criticized by dozens of groups, including advocacy groups and a coalition of religious organizations.

Beyond the mere idiocy of guaranteeing a private prison company income despite prison population shifts for the next twenty years, people are starting to question the source of the proposal; former director of the Federal Bureau of Prisons, Harley Lappin.  Shortly after leaving his post in the federal government, Mr. Lappin took his highly lucrative job in the private sector in one of many examples of the "revolving door" that characterizes the industry and its success at cultivating political relationships.  The proposal from CCA actually encourages the sale of federal prison facilities, which Mr. Lappin himself was in charge of just a few short months ago.  But that's not all; in his capacity as director of the BOP, Mr. Lappin authored a report highly critical of the very private prison industry in which he is now employed. 

Thankfully, it's looking like the work of the groups who were quick to oppose CCA's proposal is paying off.  Many states have already decided to reject it; at least five states, including those with the highest correctional populations, many of which have existing contracts with private prison companies, have said they aren't even considering it.  I guess their current relationships with the industry have dissuaded them from wanting to further entangle themselves with a company that profits off human misery.  Who woulda thunk?  Of course, some governments were bound to take the bait; Louisiana Governor Bobby Jindal recently announced his plans to sell a state prison to the highest bidder, which is, in the words of a state representative, "an unlawful dereliction of state duty."

I'm sure this won't be the last of what we hear from states as they consider the proposal.  But hopefully this will be the last bad news.

Revolving Door in Tennessee

Quick link here to a discussion of a recent report documenting the revolving door between Tennessee's legislature and its lobbying force.  Many former state officials now work in the private sector lobbying for major industries that hope to gain favor with the establishment.  Among those officials is the former governor of the state, Don Sundquist, who has been hired as a lobbyist by CCA, which is headquartered in Nashville.  As if that weren't bad enough, Sundquist also used to employ current CCA board member (and former CEO) John Ferguson in his administration.

No wonder this perpetually poorly performing industry is so effective at securing contracts.

CCA Lobbyist at Center of Ethics Debate

The great state of Idaho is one of only 2 in the country that lacks a public disclosure requirement for its legislators.  This has prompted Democrats in the state to seek to implement stricter ethics requirements, including financial disclosure and a 1-year waiting period before former legislators or public officials can register as lobbyists.  That second part is especially relevant for CCA, who now employs the former chief of staff for the governor as a lobbyist, less than 1 year after he left his official position.  Unfortunately, though, past attempts to introduce some ethics reform into Idaho's legislature have failed, and it doesn't seem incredibly likely that this will pass, given the person who thwarted the last attempt in 2009 is still Speaker of the House.

We're All Screwed in the End

I often try to figure out ways to convince people that private prisons are not in the best interest of anyone but executives of private prison companies.  There are plenty of others out there like myself, trying to work with elected officials and concerned citizens to convince our legislators that continually giving billions of dollars to an industry whose very survival depends on locking up an ever-increasing segment of our population is morally reprehensible, and bad business to boot. But unfortunately, much of that activism seems for naught, as the anti-privatization movement's resources and political relationships pale in comparison to the influence built up by the privateers.

Take for example Broderick Johnson, lobbyist extraordinaire who was paid more than $1 million to lobby to get TARP passed on behalf of the major financial institutions that destroyed our economy.  He has also worked for such socially conscious organizations as Talx Corp (which helps employers challenge unemployment claims), Comcast, and the GEO Group.  Mr. Johnson also happens to be a senior adviser to President Obama, whose immigration policies have been, if not an expansion, at least the continuation of the compassionate and sensible policies of his esteemed predecessor.

So Obama's got a former GEO Group lobbyist working as a senior adviser.  He also appointed a former employee of the GEO Group and CCA, Stacia Hylton, as director of the US Marshal's Service, a federal agency in control of millions of dollars worth of private prison contracts.  I guess it should come as no surprise that the GEO Group was awarded a contract in excess of $235 million to house immigration detainees, despite decades of evidence proving the company can't operate a prison efficiently and that it seems incapable of treating its wards with basic human decency.

After the Revolving Door Stops Turning

A really interesting story came out of New Mexico last week that really speaks to the great benefit the industry enjoys in having former (and potentially future) employees working in government.  I have often complained of the political and contractual favoritism shown to the industry by former employees, but this one really struck me.

The new Secretary of Corrections has decided to finally start holding the GEO Group accountable for its terrible mismanagement of its facilities in the state, fining the company more than $1 million for failing to maintain  adequate staffing levels, which obviously presents a huge risk of violence.  This is the first time the state has really held any private prison company accountable for failing to meet contractual obligations.  The former Secretary, who had previously worked for the GEO Group, repeatedly declined to fine the industry for known failures to comply, saving the GEO Group nearly $20 million worth of fines in the process.  And it seems like the new Secretary is serious about holding GEO Group and CCA accountable for the millions of taxpayer dollars they get in contracts; he says he wants to review staffing levels at private prisons every single month.

And the fines could not have come at a more appropriate time.  Because a prisoner in a GEO Group facility in Clayton, New Mexico, was just beaten to within an inch of his life and is now on life support following the vicious assault.

PS - that former secretary of corrections, Joe Williams, who declined to fine the GEO Group nearly $20 million, landed himself a nice, cushy gig with, who else, the effing GEO Group.  He's the director of US operations, a position that I'm willing to bet pays a pretty decent salary.

Revolving Door Paying Off

As I reported on previously, the GEO Group has exercised the revolving door between the private prison industry and politics rather well, as their former lobbyist and consultant, Stacia Hylton, was elected to head the US Marshal's Service, one of the federal agencies that contracts with the GEO Group.  Clearly, some people were disturbed by the idea that someone who earned literally hundreds of thousands of dollars working for a company with a long track record of human rights abuses and poor contract performance would be placed into a position with significant oversight over the management and awarding of contracts to that very company.

It turns out those people (myself included) may have been onto something.  Because Ms. Hylton has refused to investigate numerous claims by immigration detention advocates that detainees in a GEO Group prison in New York have been subject to ongoing abuse.  It must be nice for the GEO Group to have friends in such high places, but that really sucks for the immigrants being abused by this private, for-profit social leech of a corporation.

CCA's Revolving Door Continues to Turn

CCA's influence in Idaho just got a boost, thanks to the departure of the Governor's long-time aide to a lobbying firm.  After working for four years as the top aide to Governor Otter, Jason Kreizenbeck is leaving the administration to take a job with one of the largest lobbying firms in the state, led by former Senator Skip Smyser.  Smyser's firm represents, among other clients, CCA, whose failure to adequately operate the Idaho Correctional Center resulted in a huge lawsuit against the company for violence so pervasive it was called "Gladiator School" by the prisoners housed there.

The Mighty Political Influence of Private Prisons

I'm not going to go off on a tangent here; I just want to share with you a link to a fantastic article by Bob Ortega of the Arizona Republic.  Mr. Ortega details the tremendous amounts of influence and leverage the private prison industry has cultivated in both state and federal legislatures over the past few decades through campaign contributions, lobbying, and the revolving door between the industry and government.  The amount of money donated to politicians is staggering, and greatly helps to explain the continued success of the industry in securing contracts despite performing less efficiently than its government counterparts.

Tennessee's Revolving Door Problem

Just a quick one here.  TN Governor Bill Haslam has just hired Leslie Hafner to be his new director of legislation.  Hafner has previously worked in "government relations" (i.e. lobbying) for CCA in numerous states, including Tennessee, which also happens to be the home of CCA.  Isn't that swell?

Revolving Door (Turn, Turn, Turn)

Two interesting bits of news today on the perpetual revolving door that is the private prison industry. The title link goes to a piece from Tennessee, where a lobbyist and former CCA employee, Leslie Hafner, was just selected to be the Governor's new director of legislation. This is a good position for a former CCA employee to be in, what with CCA having their headquarters in Nashville and all.

Then there's this story from Montana, where CCA has siphoned off a state prison warden to come to the Crossroads Correctional Facility in Shelby. And in one of the richer bits of irony I've seen in a while, Mr. Mahoney (the new CCA employee) had this to say of a riot that occurred on his watch at the state prison in '91: "When you don’t have the proper numbers, you end up running the staff you do have extra hard,” he said. “That’s never a good idea in a correctional environment."

Well Mr. Mahoney, get ready to run your new staff "extra hard."

The Huge Revolving Door

The private prison industry, like many other private industries that have interests in politics (think oil, pharmaceuticals, energy companies, etc.), routinely sees "revolving-door" activity between its leaders and the political scene. What I mean by this is that leaders in the industry often get jobs in government where they can directly influence legislation and policy to the benefit of the industry they left, and vice-versa. They also routinely get gigs lobbying for major companies, and the three different positions (and the circulation between them) make for the "revolving door" effect, which blurs the lines of distinction between corporations and government.

The real danger of this situation is in the inevitable conflicts of interest that arise when people with connections in a certain industry find themselves in positions that wield power and influence over how that industry operates. It is not healthy for a society to be regulated based on the interests and desires of industry leaders looking to protect corporate interests, which almost invariably run counter to social and human interests.

So it's particularly troublesome that the former director of the largest prison system in the country, the federal Bureau of Prisons, Harley Lappin, was just hired by CCA as an executive VP. He retired from the BOP on May 7, and less than three weeks later was hired by CCA, a company that receives approximately 40% of its operating revenue from the federal government, including the BOP. Lappin is now one of two former BOP directors on CCA's payroll.

While going from government to the private sector isn't nearly as troubling as its opposite, it still raises questions about the influence CCA has on the BOP and its relationship with the leaders of our federal prison system. Having a private company with a long track record of human rights abuses and contract noncompliance be apparently close enough with the leaders of a government agency supposed to be in charge of overseeing its operations explains a lot about how CCA is able to get away with all the terrible things they do

And the Revolving Door Continues to Turn

Michael Taafe used to work in the Oregon Department of Corrections, Health Services Division. He served on a three-member panel that selected Correctional Health Partners, a private company that provides "medical care" to prisoners, to be the recipient of a multi-million dollar contract with the state's DOC to care for 14,000 prisoners. Mr. Taafe left his position with the state in March, and three days later, 3 DAYS, began a new job at correctional health services.

Ohio's Governor is an Idiot

Ohio Governor John Kasich is yet another cookie-cutter republican looking to defund and cripple unions, slash taxes for the wealthy, and turn over government functions to his cronies in the private sector. No news there. However, I was not aware that he is also apparently incapable of thinking rationally about his budget.

Kasich has proposed cutting more than $30 million from his department of corrections budget for this year, the largest cut the department will have ever taken in its history if enacted. He plans to do this primarily by privatizing more of the state's prison system. So aside from the fact that privatization doesn't actually save any money compared to government operation of a prison, he uses some odd logic to justify his cuts.

"By transitioning to a blended public and private corrections system, officials hope to cover the budget gap, decrease the increasing violence in the system and stabilize both funding and the violence."

Well guess what, Mr. Kasich, you're absolutely, in no way shape or form, going to wind up with lower levels of violence by handing control of your system to an industry notorious for inefficient management and poor training of its staff. Any unfortunate Ohio prisoner who gets transferred to a private facility will merely become a commodity to the industry, and will most certainly face crueler conditions and less constructive activities (remember, idle hands are the devil's playthings).

Thankfully, though, not all of Mr. Kasich's constituents are as simple-minded as he. A veteran CO took the mic at a recent news conference and caused a mild uproar when he began questioning the motives behind the move, especially in light of the fact that Gary Mohr, Kasich's new secretary of corrections, used to be employed by CCA, and the generous campaign contributions CCA made to Kasich's campaign. The CO, Bob White, "was escorted out of the building by fellow correctional employees after swearing during a third visit to the microphone. But he left to a standing ovation from part of the crowd, several who shouted in agreement that they were as angry as he was."

I'd have been yelling right there with you. Thank you Bob White for having some sense, and the huevos to stand up for what's right.

Shortsighted Solution

Governor John Kasich in Ohio is a big fan of private prisons, depsite the fact that one of the most notorious lawsuits against an industry leader (CCA) arose from major problems at a facility in Youngstown, Ohio. He is so big a fan, in fact, that he hired former CCA employee and consultant Gary Mohr to be his director of corrections.

Governor Kasich recently released his budget, which includes plans to sell 5 of the state's prisons to private companies. However, I can't quite follow the logic. Mr. Mohr says this was preferable to the alternative, which would be shipping more than 10,000 prisoners out of state (I guess releasing non-violent drug offenders is too logical a solution...). He says, "I honestly can't imagine the process of putting inmates on a bus to transfer out of state away from their families because it isn't something that 12,000 inmates would want to do." Well, Mr. Mohr, I'm pretty sure they're not going to like your solution, either.

I'm not going to rehash all my typical arguments about private prisons here, but suffice it to say that their quality of life, security, medical care, and programming is sure to decrease. Further, this decision will have economic impacts on the communities where the prisons are located. The guards at these facilities will either be out of a job, or forced to take a job with a less professional company, with less training and much higher turnover, for nearly $5,000 less in salary, and even more reductions in benefits, per year.

But the real issue here is the lack of programming prisoners are going to recieve. Private prisons are far less likely to offer vocational and technical education services to their prisoners. Additionally, part of Kasich's plan calls for eliminating 3 work camps, which help prepare prisoners to transition back into society upon release. By eliminating state-supported re-entry services and turning to private companies known to neglect them, Governor Kasich is selling Ohio's prisoners and taxpayers short.

Ponte Takes the Next Step

Former CCA Warden Joe Ponte has been endorsed by a legislative committee in Maine, part of his confirmation process after being nominated by new Governor Paul LePage. Now, all he needs to be appointed Maine's next secretary of Corrections is approval from the state Senate.

Thankfully though, he'll sell his shares of CCA if confirmed. So I'm sure he won't in any way encourage privatization of the state system....

UPDATE: It's official, the Maine Senate has confirmed former CCA warden Joe Ponte to be Maine's next Commissioner of Corrections. Effing awesome.

Dubious Decisions

John Kasich, Ohio's new governor, has come under scrutiny because he has failed to appoint to a single cabinet position someone who isn't white. Aside from that rather blatant racism, he has also made some questionable hiring decisions in other areas. Namely, his new Secretary of Corrections used to be a CCA employee.

Well it also turns out that Kasich has other ties to the private prison industry, in the form of some of his closest advisors. The man Kasich calls his "closest friend" runs a lobbying firm that represents CCA. Two other men who are partners in a separate lobbying firm that represents the GEO Group served as high-level strategists in Kasich's campaign.

All of which makes Kasich's recent pledge that there "nobody will get a special deal" all the more dubious. I hope he at least tries to live up to that promise, though I have little faith he actually will. This type of revolving-door politics is one of the biggest contributors to our current prison industrial complex. I fear the repurcussions of having industry lobbyists serve as high-level advisors and strategists to people in positions of power, because these types of relationships almost inevitably screw over average citizens.

Behind-the-Scenes Work

Tom Ingram is a very well-connected and influential lobbyist and PR person in Tenessee politics, with connections all the way to Washington, DC. He was the campaign manager for the governor and both Senators in their most recent elections, helping to usher in a republican-dominated government in Tennessee. That should bode very well for CCA, which already enjoys a close relationship with the government in its home state, as they also happen to be a client of Mr. Ingram's lobbying firm.