There is little credible evidence to support the industry’s claim that privatization of prisons cuts costs.
CCA advertises that privately-managed prisons can save states up to 20 percent on the cost of incarceration. Yet a study by the U.S. Bureau of Justice Assistance found that these savings “have simply not materialized.”
4 In fact, some research has concluded that for-profit prisons cost more than public prisons.
5 Furthermore, cost estimates from privatization advocates are misleading because private facilities often refuse to accept inmates that cost the most to house. For instance, a 2001 study concluded that a pattern of sending less expensive inmates to privately-run facilities artificially inflated cost savings.
6 A 2005 study found that Arizona’s public facilities were seven times more likely to house violent offenders and three times more likely to house those convicted of more serious offenses.
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