Willacy County Local Gov't bonds downgraded to junk, county and city left to plug gaping budget holes

Last month, February 25th, an uprising over negligence, poor sanitation, and lack of medical care occurred at the “Tent City” criminal alien requirement (CAR) prison in Willacy County. Following the uprising, Management and Training Corporation (MTC) lost its contract with the Bureau of Prisons (BOP) and fired the nearly 400 employees that worked there. All of the 2,400 prisoners were transferred to other facilities around the country.

Although MTC is investigating the uprising, there are no immediate plans to reopen the facility. The damage, loss of the BOP contract, and the layoffs are piling up on top of the county's $63 million debt from the building of the facility.

All this has caused the Willacy County Local Government Corp. bonds to be downgraded to junk status by the S&P. The already struggling county will be left to fill the gaps in its budget, and will not be able to afford some of its planned expenditures — including a new hurricane shelter.

The model of MTC and other private prison companies is to find small, struggling towns and counties like Willacy and Raymondsville and promise them economic recovery. The aftermath of the Willacy uprising is one more example of how they do not deliver on their promises, and if anything goes wrong, the companies bail — leaving the vulnerable community to fend for itself.