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Arizona Town Funneling Money for Corrections Corporation of America

Eloy Detention Center image

The for-profit private prison industry is breaking new ground, and not just in Dilley, Texas where the largest family immigrant detention center is currently being built. Aside from the tortured history of family detention centers in Texas (see list below), what makes this plan ground-breaking in the worst kind of way, is the fact that it is being contracted by a prison town over 900 miles away.

That’s right. Corrections Corporation of America (CCA) will run this new facility, but the money will first be funneled through the City of Eloy, Arizona (which will get a hefty cut, of course). This is unprecedented, shady, and mind-boggling, but also possibly completely legal thanks to an Intergovernmental Services Agreement which allows for no-bid contracts.

John Burnett, who covered the story for NPR, quotes an unnamed ICE source as saying it is “a creative response to a difficult situation.” Certainly—just like off-shore bank accounts are a creative response to taxes. It turns out that Eloy is literally only acting as the financial go-between for the money from ICE to CCA. It claims no responsibility for what happens in the facility. This is how Burnett described it in his piece for NPR,

Here’s how it will work with the new South Texas facility: ICE sends Eloy $290 million for the first year’s expenses. The city passes through that payment to CCA to run the facility. And CCA pays Eloy $438,000 a year to essentially act as its accountant — nothing more.

Organizational Support for Campaign to Bring Prisoners Home Mounts in Vermont

For immediate release: October 30, 2014

(BURLINGTON, Vermont) — A letter signed by nearly thirty Vermont organizations, groups and businesses was delivered to the Administration and to political candidates today calling for the return of Vermonters from out-of-state, private, for- profit prisons. Letter signatories believe taxpayer dollars would be better spent on sustainable supports to keep people out of prison and serve those re-entering society.

Read more about Organizational Support for Campaign to Bring Prisoners Home Mounts in Vermont

Texas Prison Bid'ness:The GEO Group has already seen a return on their investment in family detention

The GEO Group's stock prices hit a new 52-week high this week, reaching $38.69 a share. At a stockholder meeting in August, the company promised increased revenue — a projection of $26 million this year — resulting from the return of family detention to the Karnes County Civil Detention Center in Texas that same month. 

Karnes County Detention CenterKarnes County Detention Center

The Corrections Corporation of America is also profitting from the return of family detention, with the construction on the newest and largest immigrant detention center in the country—the South Texas Family Residential Center—beginning last month in Dilley, TX. CCA reportedly will make $298 dollars per person per day in Dilley.  Read more about The GEO Group has already seen a return on their investment in family detention

Texas Prison Bid'ness:Karnes County Family Detention Center becomes the newest site in a long string of human rights abuses against immigrant detainees

The Karnes City Family Detention Center came under intense scrutiny earlier this month when the Mexican American Legal Defense and Education Fund (MALDEF) and lawyers from the University of Texas School of Law submitted a complaint that guards have been committing “substantial, ongoing sexual abuse” against the mothers being detained.

When the facility—run by the GEO Group—began receiving mothers and their children at the beginning of August, advocates remembered the conditions and trauma that the families detained at the T. Don Hutto facility had to endure from 2006 to 2009On an ICE directed visit to the Karnes facility last month, mothers complained about the severe cold, poor food quality, and the lack of freedom that they and their children experience on a daily basis, a nearly identical description of initial conditions in the Hutto facility. Read more about Karnes County Family Detention Center becomes the newest site in a long string of human rights abuses against immigrant detainees