Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, August 26, 1995 TAG: 9508280059
SECTION: VIRGINIA PAGE: A1 EDITION: METRO
SOURCE: DAVID M. POOLE STAFF WRITER
DATELINE: RICHMOND LENGTH: Long
A study released earlier this year, however, found little difference between the cost of the privately run prison and two state-run facilities.
Tennessee's experience has done little to dampen Gov. George Allen's enthusiasm for entrusting a chunk of Virginia's $2 billion prison initiative to the private sector.
On Friday, the Allen administration announced the five finalists for the contract to build and operate the state's first private prison - a 1,500-bed, medium-security prison. By year's end, Virginia is expected to have 3,800 private beds under contract.
Allen administration officials, confident that Virginia can do a better job than Tennessee, say arrangements with for-profit companies will both hasten prison construction and save money.
Jerry Kilgore, Allen's secretary of public safety, said the state expects to shave about 10 percent off the cost of keeping prisoners under lock and key. Initial cost estimates should be available by mid-October, when the Department of Corrections is expected to award the medium-security contract.
Two of the five finalists have had dealings with the Department of Corrections:
The Texas-based Bobby Ross Group operates the Texas prison where more than 700 Virginia prisoners are being held.
Corrections Partner'slegislative branchesthe General Assembly. The company is headed by Robert Buchanan, who - like Allen - played football at the University of Virginia. The company recently was acquired by the nation's largest private prison company, Corrections Corporation of America.
The three remaining finalists are: U.S. Corrections Corp. of Louisville, Ky.; Wackenhut Corrections of Coral Gables, Fla.; and ESMOR Correctional Services of Sarasota, Fla.
The finalists have selected sites clustered in Southside and Southwest Virginia.
Many residents in those hard-pressed regions see prisons - considered a curse in more affluent regions - as a blessing that will provide recession-proof jobs to replace opportunities lost in declining industries such as manufacturing and coal mining.
In Southside Virginia, Brunswick County leaders have embraced Corrections Partners' bid to build a private, medium-security prison on a tract of land next to a state-run prison.
``Since Governor Allen has decided to turn Virginia into a prison colony, we in Brunswick County might as well get our share,'' George R. ``Billy'' Smith of Lawrenceville said earlier this year.
Not every community is so eager to have a prison in its back yard. A resolution of support for a private prison by the Wythe County Board of Supervisors led to public outcry and cost two supervisors the nomination of their political parties in this fall's elections.
In the coalfields, Tazewell County still is seeking a prison, but only if it is a state facility with a set wage scale. County officials there are concerned that the county's abundance of unemployed workers could enable private companies to drive wages down fear desperation for jobs will let private companies drive down wages.
Tazewell County supervisors ``feel the private prison wouldn't help the employment at all,'' County Administrator Dick Farthing said.
State guidelines say the winning bidder can put all 1,500 beds in one facility, or build two separate 750-bed prisons.
Although a General Assembly panel recommended a pilot project five years ago, Virginia has been slow to pursue private prisons.
``Virginia has been flirting with privatization for a number of years,'' Kilgore said.
The flirtation grew into courtship after Allen's election in November 1993. Allen, a firm believer in privatization, needs as many new prison beds as possible after making good on a campaign promise to abolish parole.
Earlier this year, however, the Allen administration flubbed its attempt to contract for a 500-bed pre-release center. Corrections Partners claims it had a ``handshake'' deal to build a facility in Brunswick County, but the administration canceled the deal over cost concerns.
``It wasn't going to result in any cost savings,'' Kilgore said.
With corrections developing into a major issue in General Assembly elections this fall, the Republican administration is eager to demonstrate the importance of private prisons.
The Department of Corrections has put the medium-security prison on the fast track, with a contract announcement expected by Oct. 10. That will be followed by a 1,000-bed minimum-security prison contract and two pre-release center contracts for up to 1,300 prisoners.
State law requires that any private prison contract must save money.
The Tennessee study, conducted by the state's Fiscal Review Committee, compared similar correctional facilities: one private and two state prisons.
The analysis showed that daily cost for the state facility was $35.76 per inmate, compared with $35.38 for the private prison - a difference of slightly more than 1 percent.
The committee also found no difference in levels of security and other services.
A 1992 Kentucky analysis of three minimum-security prisons showed savings of up to 7 percent in per-inmate costs for privately run prisons. But the one public prison used in the study was built in the late 19th century, meaning it lacked many modern design features that allow a relatively few guards look after many prisoners.
``We'll be happy for any savings,'' said Kilgore, who has not read the Tennessee study. ``Any savings will mean savings for the taxpayers - even if it is 1 percent.''
by CNB