Economic development subsidies and the funding of private prisons

BE Price, R Schwester - International Journal of Public …, 2010 - Taylor & Francis
International Journal of Public Administration, 2010Taylor & Francis
For-profit prison corporations have sold prison privatization as a tool for economic
development. The idea of prisons became more appealing once for-profit prison corporation
demonstrated that they could finance, build, design, and construct prisons with private
capital from private investment companies. Many private prisons throughout the United
States are provided local, state, and federal economic development subsidies—which may
include tax advantaged financing, property tax abatements, infrastructure improvements …
For-profit prison corporations have sold prison privatization as a tool for economic development. The idea of prisons became more appealing once for-profit prison corporation demonstrated that they could finance, build, design, and construct prisons with private capital from private investment companies. Many private prisons throughout the United States are provided local, state, and federal economic development subsidies — which may include tax advantaged financing, property tax abatements, infrastructure improvements, and personnel training and development resources. Most research on prison privatization has examined costs and quality comparisons of private run prisons to government run correctional facilities. This article examines the factors that predict economic development subsidies to private prisons, which include: economic, social control, geographic, and political factors. Logistic regression results indicate the per capita gross state product, political ideology, black male disenfranchisement, and mandatory sentencing laws predict economic development subsidies to private prison corporations.
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