레이블이 Birmingham CPA Firms인 게시물을 표시합니다. 모든 게시물 표시
레이블이 Birmingham CPA Firms인 게시물을 표시합니다. 모든 게시물 표시

2013년 11월 25일 월요일

About 'accounting firms in birmingham al'|A Place in the Auvergne, Tuesday, 30th September 2008







About 'accounting firms in birmingham al'|A Place in the Auvergne, Tuesday, 30th September 2008








               Implications               of               Privatization:               Prisons               for               Profit
               An               Introduction               to               Privatization
               Privatization               in               a               simple               sense               is               "relying               on               private               institutions               of               society               and               less               on               government               to               satisfy               people's               needs"               (Savas,               2000,               p.

3).

Privatization               is               the               process               of               transferring               ownership               of               business               from               the               public               sector               to               the               private               sector.

In               a               broader               sense,               privatization               refers               to               transfer               of               any               function               normally               performed               by               a               government               agency               to               a               private               for-profit               entity.

Although               privatization               is               highly               contested               and               subject               to               controversy,               it               seems               evident               that               it               serves               as               a               necessity               in               today's               economy.

"It               is               now               a               worldwide               practice,               adopted               in               democracies               and               dictatorships,               developed               and               developing               nations,               and               communist,               socialist,               and               capitalist               countries"               (Reason               Public               Policy               Institute,               2006,               p.

25).

It               would               be               safe               to               say               that               privatization               is               practically               everywhere               and               will               become               increasingly               more               wide               spread               in               the               future.

"When               the               cost               of               government               activities               is               rising               but               the               public's               resistance               to               higher               taxes               is               also               rising,               public               officials               seek               any               medicine               that               promises               to               relieve               this               fiscal               stress"               (Savas,               2000,               p.

5).

Although               recent               events               such               as               President               Bush's               movement               to               privatize               social               security               were               met               with               cynicism,               the               problem               of               rising               government               costs               will               promote               future               administrations               to               ultimately               produce               a               more               privatized               system               (Reason               Public               Policy               Institute,               2006).
               As               previously               mentioned,               privatization               is               often               met               with               much               cynicism.

It               has               been               stated               that               privatizing               government               functions               and               delegating               the               sovereign               powers               of               government               to               private               contractors               is               a               threat               to               democracy               (Verkuil,               2007).

It               is               also               a               concern               that               the               private               contractors               are               in               business               to               make               money               and               not               necessarily               to               preserve               quality               in               the               services               provided.

When               a               private               company               is               contracted               by               the               government               does               it               become               a               natural               monopoly               and               therefore               not               subject               to               competitive               forces               further               jeopardizing               the               quality               of               service?

Does               cost               cutting               in               a               for-profit               organization               jeopardize               the               quality               of               service?

These               and               many               more               questions               arise               when               human               services               are               privatized.
               Although               privatization               is               spread               over               many               government               agencies               and               many               diverse               services,               a               closer               look               into               the               privatization               of               prisons               provides               an               insightful               glimpse               of               the               concerns               and               benefits               of               removing               public               control               in               areas               that               are               so               critical               and               largely               concerned               with               the               health               and               well               being               of               citizens.

In               examining               the               role               of               privatization               on               the               cost               of               the               generally               government               provided               service               of               prisoner               housing,               it               is               evident               that               there               will               be               opposing               ideas.

"When               private               actors               perform               'quintessentially               governmental'               roles,               critical               and               sometimes               controversial               issues               of               public               policy               emerge"               (Blumstein,               Cohen,               &               Seth,               2007.

p.

3).

The               privatization               of               prisons               is               a               quintessentially               government               performed               function               that               fits               this               description               is               riddled               with               controversial               issues.
               History               of               Prison               Privatization
               "To               understand               the               current               debates               about               the               privatization               of               prisons,               a               short               historical               review               of               private               prisons               is               presented"               (Shichor,               1995,               p.

19).

In               general,               privatization               is               not               a               new               concept.

It               has               been               around               since               the               early               American               colonies,               when               government               was               decentralized               and               criminal               justice               was               administered               on               the               local               level               (Shichor,               1995).

Under               the               English               rule,               it               was               much               more               desirable               to               hold               a               private               prosecution               than               to               involve               the               English               government.

Although               this               may               have               been               some               type               of               basis               for               prison               privatization,               it               isn't               necessarily               what               one               would               consider               as               prison               privatization               by               today's               terms.

An               initial               attempt               at               privatization               was               made               in               the               1950s               with               a               lease               program.

Inmates               were               leased               out               as               laborers               to               private               corporations               and               the               money               was               placed               in               the               state               budget               to               help               with               costs               of               running               public               prison               facilities               (Price,               2006).

This               attempt               failed               due               to               corrupt               practices,               only               to               rise               from               the               ashes               about               twenty               years               later               (Price,               2006).

The               ground               work               for               prison               privatization               as               we               know               it               was               initiated               in               the               1970's,               and               would               start               an               expanding               trend               that               remains               in               effect.
               Due               to               public               out               cry               in               the               1970's,               the               justice               system               shifted               to               a               tougher               approach               on               crime.

With               the               governments               "war               on               drugs"               and               stiffer               penalties               for               repeat               offenders,               the               population               in               the               prison               systems               on               both               the               federal               and               state               levels               skyrocketed               (Rio               Grande               Foundation,               2003).

The               boom               in               the               prison               population               was               so               explosive               that               by               1986,               most               states               were               in               excess               of               ninety               five               percent               capacity               (Rio               Grande               Foundation,               2003).

With               the               overcrowding               issues               haunting               most               states,               courts               began               to               intervene               in               accord               with               complaints               that               the               facilities               violated               the               Constitution.

Quick               answers               were               sought               to               provide               relief               for               the               heavy               laden               state               penal               systems.
               A               partial               answer               to               the               problems               of               prison               overcrowding               and               high               costs               was               to               privatize               a               portion               of               the               public               prisons               by               opening               the               door               to               corporate               run               facilities.

The               Corrections               Corporation               of               America               (CCA),               based               in               Nashville,               Tennessee,               and               founded               in               1983,               is               considered               the               corporate               pioneer               in               prison               privatization               (About               CCA,               n.d.).

The               first               private               prison               contact               was               signed               in               1984,               between               Hamilton               County,               Tennessee               and               the               Corrections               Corporation               of               America               (About               CCA,               n.d.).

Prison               privatization               was               born               and               has               been               growing               at               a               rapid               pace.

"From               2000               to               2005,               the               number               of               private               facilities               increased               from               16%               (264)               to               23%               (415)               of               all               institutions.

About               two-thirds               of               all               private               facilities               were               under               contract               to               state               authorities               and               a               third               were               under               contract               to               the               Federal               Bureau               of               Prisons"               (Stephan,               2008,               p.

1).

"Since               its               inception,               CCA               has               maintained               its               market               leadership               position               in               private               corrections,               managing               more               than               50               percent               of               all               beds               under               contract               with               such               providers               in               the               United               States"               (About               CCA,               n.d.).

Although               privatization               brought               quick               relief               to               the               state's               overcrowding               burden,               it               can               be               considered               only               a               partial               answer.

This               answer               is               surrounded               by               controversy               and               criticism               which               has               stemmed               many               new               questions               about               the               validity               of               private               prisons.

In               general,               proponents               to               privatization               claim               that               it               is               an               important               measure               that               has               created               cost               savings               for               public               budgets               and               taxpayers               with               no               lose               of               quality               of               service.

The               opponents               claim               that               the               cost               benefits               are               virtually               non-existent               and               a               fabrication               of               shifty               accounting               practices               and               that               quality               suffers               immensely               as               the               private               corporation               cuts               corners               to               maximize               profits.
               Controversy:               Two               Sided               View
               "The               original               promise               was               that               prison               privatization               would               increase               service               quality"               (Gaes,               2005,               p.

1).

Additionally,               "competition               would               be               free               to               effectuate               cost               reductions,               and               implicit               costs               attributable               to               public               production               could               be               circumvented"               (Sellers,               1993,               p.

13).

The               motivation               for               privatization               is               that               the               private               corporation               can               improve               quality               and               lower               costs,               essentially               passing               savings               on               to               the               public               all               while               making               a               profit.

Although               there               is               a               vast               array               of               studies               which               both               refute               and               support               these               ideas,               there               is               insufficient               evidence               to               confirm               that               the               latter               holds               true.

Opponents               and               proponents               can't               seem               to               agree               on               the               reports               because               each               have               their               own               vested               interests.

"Only               objective               analysis               will               settle               this               question               that               plagues               policy               makers               and               tax               payers"               (Price,               2006,               p.

40).
               Looking               at               the               facts               objectively               requires               that               both               sides               of               the               coin               be               examined.

Initially,               the               views               of               the               proponents               for               privatization               will               be               portrayed,               followed               by               the               argument               of               the               opponents.

The               major               players               on               the               proponents'               side               are               the               corporations               that               are               currently               operating               in               the               private               prison               industry.

On               the               other               side,               the               opponent's               major               players               are               comprised               of               public               correctional               employee               unions.

Each               side               has               their               own               vested               interests               as               well               as               data               to               support               their               claim.

After               each               case               is               presented,               a               more               objective               approach               will               be               presented               in               an               attempt               to               sort               out               the               details               to               reach               an               impartial               analysis.
               For               organizational               purposes,               the               following               two               issues               will               be               addressed               with               respect               to               each               sides               view               point,               and               the               objective               view               will               follow               up               on               these               stated               issues:
               1)               Quality               of               Service.

2)               Cost               Measures.

It               should               be               noted               that               the               data               and               information               provided               is               subjective               in               nature               and               may               be               biased               by               those               compiling               the               reports.
               Proponents               view
               The               push               for               privatization               claims               that               the               private               sector               can               do               the               job               of               housing               prisoners               more               efficiently               and               pass               the               savings               on               to               state               budgets               and               ultimately               to               the               taxpayers.

The               purpose               of               privatization               is               to               improve               the               quality               of               a               service               provided               without               increasing               costs.

Additionally,               private               corporations               can               improve               the               quality               of               service               and               cut               costs               while               maintaining               a               higher               level               of               safety               for               the               public,               the               institutional               staff,               and               inmate               population.

This               is               the               stance               that               most               proponents               for               privatization               take               proclaiming               an               utter               dominance               in               performance               of               private               run               facilities               over               the               public               run               facilities.

Other               recent               studies               on               private               prisons               have               recognized               that               "[p]rivatization               can               offer               increased               innovation,               access               to               expertise,               improved               quality,               and               enhanced               accountability"               (Blumstein,               et               al.,               2007.

p.

7).
               Quality               of               Service:
               Claims               of               proponents               for               privatization               argue               that               the               mere               introduction               of               competition               into               an               operation               where               there               are               monopolistic               conditions               should               result               in               a               higher               quality               of               service.

"There               is               growing               anecdotal               evidence               that               public               sector               employees               respond               to               and/or               learn               from               competitors               when               they               exist"               (Blumstein,               et               al.,               2007.

p.

7).

Competition               promotes               innovation               and               technological               advances               that               increases               efficiency.

The               idea               is               that               because               there               is               a               level               of               competition,               both               private               and               public               employees               will               do               a               better               job.

"Choice               fosters               competition               because               public               prisons               currently               operate               under               monopolistic               conditions;               this               is               why               they               are               inefficient"               (Price,               2006,               p.

16).
               Another               argument               is               that               more               private               organizations               are               accredited               by               the               American               Correctional               Association               (ACA).

"Independent               accreditation               by               the               ACA               is               designed               to               show               a               facility               meets               nationally               accepted               standards               for               quality               of               operation,               management,               and               maintenance"               (Reason               Public               Policy               Institute,               2002,               p.

18).

By               receiving               accreditation,               the               prison               facility               has               met               the               standards               set               by               an               impartial               party               on               the               important               issues               such               as               health               care,               management,               maintenance,               and               operational               activities               (Reason               Public               Policy               Institute,               2002).

Proponents               of               privatization               base               their               debate               on               the               private               sector's               ability               to               improve               quality               and               lower               costs.

Private               prisons               cite               ACA               accreditation               as               a               testament               to               their               superiority               in               the               area               of               quality               and               efficiency               (Price,               2006).
               Cost               Measures:
               Cost               being               the               main               argument               for               the               cause               of               privatization,               the               initial               stance               is               that               it               is               cheaper               and               easier               for               private               facilities               to               be               built               (Espejo,               2002).

Private               firms               can               construct               prisons               in               about               half               the               time               it               takes               the               government               to               do               so               (Rio               Grande               Foundation,               2003).

Additionally,               numerous               studies               have               been               completed               on               expense               of               construction               of               prison               facilities               and               virtually               all               of               "them               found               private               prisons               to               provide               significantly               lower               costs-on               average               between               5               and               15               percent"               (Rio               Grande               Foundation,               2003,               p.

5).
               Another               direction               towards               cost               savings               is               presented               by               the               proponents               of               privatization.

This               contention               is               "government               lacks               management               flexibility               because               of               union               constraints               on               decision,               which               would               reduce               the               number               of               workers,               better               using               existing               capital"               (Price,               2006,               p.

16).

In               a               recent               study               by               the               CCA               the               results               were               that               "yes"               we               do               it               better.
               The               fundamental               conclusion               of               the               study               is               that,               over               the               six-year               period               1999-
               2004               (the               period               for               which               appropriate               data               exist),               states               that               have               some               of               their               prisoners               in               privately               owned               or               operated               prisons               experience               lower               rates               of               growth               in               the               cost               of               housing               their               public               prisoners.

That               finding               is               generally               statistically               significant               at               the               conventionally               accepted               5%               level.

(Blumstein,               et               al.,               2007.

p.

7)
               Private               corporations               have               produced               many               studies               to               support               their               cause.

It               appears               that               most               of               the               reports               generated               compare               public               and               private               prisons               on               a               wide               scale               of               variables.

Generally,               all               the               studies               conclude               that               the               quality               of               service               is               on               the               same               level               or               higher               in               the               private               facilities.
               Opponents               View
               "The               most               prevalent               argument               against               private               prisons               stems               from               the               notion               that               prisons               are,               by               nature               and               extension               of               law               enforcement,               generally               considered               a               primary               government               activity               that               should               not               be               contracted               out"               (Alabama               Public               Policy               Institute,               n.d.,               p.

7).

Many               who               are               opposed               to               prison               privatization               feel               that               the               burden               is               on               the               state               and               shouldn't               be               passed               on               to               the               private               sector.

"This               idea               is               reinforced               by               the               experiences               of               states               that               have               used               private               prisons               in               the               past.

The               prisoners               were               farmed               out               to               the               private               sector               administrators               as               individual               servants"               (Price,               2006,               p.

5).

This               and               other               unfair               treatment               was               the               initial               downfall               of               the               privatization               and               remains               a               concern               in               today's               arena.

The               most               pretentious               thing               that               concerns               the               opponents               to               privatization               is               the               ability               to               save               tax               payers               money               without               sacrificing               quality               of               care               and               security.

"The               major               charge               against               privatization               is               that               quality               and               security               are               sacrificed               by               reducing               costs"               (Reason               Public               Policy               Institute,               2002,               p.18).
               Quality               of               Service:
               The               main               objective               with               the               opposition               to               privatization               is               that               the               cost               cutting               objectives               sacrifice               the               quality               of               care               within               the               private               prisons.

Much               of               the               cost               savings               comes               from               employment               of               fewer               officers.

Additionally,               the               officers               that               are               employed               are               less               trained               and               less               qualified               to               handle               the               sensitive               nature               of               the               inmate               population.

These               accusations               alone               can               jeopardize               quality               if               it               is               based               upon               the               safety               and               security               concerns.

The               opponent's               view               of               quality               generally               is               focused               on               the               prevention               of               internal               problematic               situations               such               as               assaults               on               staff,               riots,               and               escapes               (Shichor,               1995).
               Another               major               concern               is               that               the               private               companies               will               have               a               vested               interest               in               keeping               their               prison               filled.

Recidivism               is               a               major               concern               for               most               public               prison               systems.

Many               of               the               public               systems               have               programs               designed               to               reduce               repeat               offenders.

These               programs               are               a               part               of               the               costs               incurred               in               the               public               facilities               (Shichor,               1995).

Efforts               to               reduce               the               recidivism               rate               are               not               seen               in               the               private               system               as               frequently               due               to               the               for-profit               companies               needing               to               maintain               their               facilities               at               capacity               (Shichor,               1995).
               Cost               Measures:
               The               rebuttal               to               the               private               prisons               claim               to               operate               with               lower               costs               is               "that               public               facilities               can               be               operated               more               cheaply               than               private               ones               because               they               do               not               have               to               make               profits"               (Shichor,               1995,               p.

136).

The               profit               motivation               creates               a               conflict               of               interests               as               the               purpose               is               to               save               the               taxpayers               money               with               privatization               and               not               make               a               marketable               product               at               the               expense               of               inmate's               livelihood.

Moreover,               the               government               is               left               with               costs               to               subsidize               and               regulate               the               private               prisons,               which               leaves               questions               about               the               ability               of               private               corporations               to               manage               prisons               more               cheaply               without               the               government               assistance               (Price,               2006).
               Studies               by               criminal               justice               groups               have               shown               that               correctional               officers               at               privately               run               prisons               are               paid               less               well,               receive               less               training,               and               experience               higher               turnover               rates               than               those               at               prisons               run               by               government               agencies.

This               can               lead               to               greater               rates               of               assaults               on               staff,               inmate               on               inmate               assaults,               and               escape               attempts.

(State               Corrections               Officer               Police               Benevolence               Association               Publications,               2006)
               Opposition               to               privatization               claims               that               the               cost               savings               are               not               present               and               that               the               information               disclosed               by               the               private               corporation               is               not               a               true               representation               of               cost               savings               due               to               the               presence               of               hidden               costs               not               included               in               the               yearly               analysis               (Shichor,               1995).

Hidden               costs               are               generally               items               such               as               insurance               premiums,               and               maintenance,               to               name               a               few.

The               absence               of               "these               factors               made               the               cost-benefit               analysis               comparisons               even               more               favorable               for               the               private               contractor's               side"               (Shichor,               1995,               p.

161).
               Objective               View
               Now               that               the               two               sides               have               been               presented               a               more               objective               approach               will               be               explored.

When               privatization               occurs,               a               certain               level               of               opposition               is               expected.

In               a               sensitive               area               such               as               law               enforcement               or               military,               the               level               of               opposition               is               much               greater               than               the               opposition               for               privatization               of               services               such               as               garbage               collection               or               waste               water               treatment               (Savas,               2000).

In               the               case               of               human               service               and               the               fair               and               humane               treatment               of               human               beings,               the               tests               for               quality               and               measures               of               accountability               seem               weak               to               say               the               least.

Although               each               side               of               the               privatization               issue               presented               above               may               have               very               pertinent               information,               one               can               merely               formulate               an               opinion               as               to               the               validity               of               each               side's               viewpoint               and               not               make               an               educated               determination               of               the               absolute               choice.
               "The               arguments               regarding               the               superiority               of               private               prisons               are               made               without               the               support               of               research,               and               it               is               ironic               that               such               arguments               are               accepted               as               putative"               (Price,               2006,               p.

23).

In               general,               people               just               want               a               quick               fix               to               the               problem.

Overcrowding               and               rising               costs               of               public               prison               operations               has               spurred               the               government               to               act.

It               is               imperative,               politically,               to               offer               solutions               to               the               problem,               and               privatization,               moreover,               shifts               the               focus               from               the               public               sector               to               the               private               sector.

The               failure               to               react               to               the               public's               demands               by               the               politicians               would               possibly               be               considered               career               suicide.
               The               two               traits               of               quality               and               cost               were               selected               as               a               basis               of               this               research               as               the               two               go               hand               in               hand               in               that               when               corners               are               cut,               quality               usually               suffers.

It               is               ironic               to               think               that               a               for-profit               company               is               not               in               business               to               maximize               profits.

The               opponent               for               privatization               really               has               very               little               stake               in               the               failure               of               privatization               within               the               industry;               it               is               the               very               high               stakes               for               the               "profit               takers"               that               drives               the               industry               and               political               agenda.
               Quality               of               Service:
               Quality               is               premised               on               the               different               views               of               proponents               and               opponents               which               are               fundamentally               distinct.

These               distinct               views               offer               little               in               the               way               of               a               road               map               for               quality.

Although               quality               is               difficult               to               quantify,               examining               certain               internal               functions               can               be               used               as               a               measure               of               quality.

A               major               comparative               study               of               public               and               private               facilities,               "tried               to               operationalize               quality               and               effectiveness               by               examining               factors               such               as               physical               conditions               of               the               facilities,               escape               rates,               security               and               control               procedures,               physical               and               mental               health               of               inmates,               adequacy               programs               for               inmates               (e.g.,               education,               counseling,               training,               and               recreation),               and               indicators               of               rehabilitation               mainly               in               terms               of               reincarceration"               (Shichor,               1995,               p.

167).

These               matters               incur               costs               and               when               corners               are               cut,               limiting               these               factors               to               create               profit,               the               quality               of               service               is               jeopardized.

Private               corporations               are               profit               oriented               and               cut               personnel               to               the               minimum               to               lessen               costs               (Shichor,               1995).

Looking               at               what               costs               are               cut               can               refute               that               quality               isn't               jeopardized               by               these               actions.

Counseling               programs               such               as               drug               dependency               counseling,               HIV/AIDS               counseling,               sex               offender               counseling,               and               job               seeking               counseling               are               all               offered               at               lower               percentage               rates               in               private               institutions               than               in               public               institutions               (Stephan,               2008).

The               same               story               applies               to               education               programs               where               the               ninety-two               percent               of               all               public               facilities               have               some               type               of               educational               program               versus               fifty-nine               percent               of               all               private               institutions               (Stephan,               2008).

This               alone               is               evidence               that               quality               is               lower               on               some               level               in               the               private               institution.
               "Evidence               from               studies               concerned               with               privatization               does               suggest               that               when               an               agency               must               compete               with               a               contractor,               its               productivity               can               increase               and               even               match               the               contractor's               performance"               (Price,               2006,               p.

17).

Competition               is               generally               positive               when               efficiency               is               sought.

"Most               important               is               recognizing               that               cost               savings               from               privatization               are               themselves               a               product               of               competition,               and               that               competition               has               beneficial               effects               on               the               entire               system"               (Reason               Public               Policy               Institute,               2002,               p.

6).

The               dynamics               of               competition               are               to               achieve               better               practices               to               out               perform               rivals.

In               this               regard,               competition               brought               on               by               the               introduction               of               privatization               has               improved               both               the               private               and               public               operational               practices.
               The               issue               of               ACA               accreditation               as               a               means               to               quantify               quality               is               refuted               by               the               fact               that               ACA               doesn't               actually               fail               to               accredit               any               institution.

The               ACA               will               review               standards               and               upon               finding               problems               will               make               recommendations               for               the               institution               then               allow               time               to               correct               the               problems               before               a               reevaluation               is               conducted               (Price,               2006).

ACA               accreditation               is               in-fact               an               attempt               to               audit               the               quality               of               service               and               is               by               all               rights               a               positive               component               fostered               by               institutions               that               demonstrate               the               intent               to               maintain               high               standards               of               quality.

A               higher               percentage               of               private               prisons               carry               ACA               accreditation               than               public               prisons               and               when               considering               quality               these               efforts               should               be               noted.

Accreditation               by               the               ACA               is               not               an               exact               measure               of               quality;               additionally,               the               ACA's               legitimacy               can               be               questioned               as               it               is               not               a               government               agency               charged               with               evaluation               of               prison               operations               (Price,               2006).
               Cost               Measures:
               The               claim               that               private               prisons               can               be               built               more               rapidly               than               public               facilities               is               an               undisputed               fact.

The               bidding               process               and               red               tape               involved               with               public               built               facilities               is               a               time               consuming               event               (Pollock,               1997).

"Private               corporations               can               do               this               work               with               their               own               funds               or               with               funds               that               they               can               raise               from               private               sources               without               waiting               for               appropriations               from               the               legislature               or               government               offices"               (Shichor,               1995,               p.

140).

Private               corporations               most               likely               can               build               prisons               with               a               greater               ease               and               with               a               greater               cost               savings.

Land               acquisition               for               the               public               facilities               and               the               bidding               process               is               much               slower               and               ultimately               more               costly               than               the               process               private               facilities               endure.
               Looking               at               both               sides               of               privatization               objectively               can               render               a               clearer               picture               as               to               the               benefits               of               privatization.

"Comparing               costs               between               private               and               public               institutions               may               disguise               important               differences               in               the               type               and               extent               of               services               rendered"               (Pollock,               1997,               p.

391).

Each               side               takes               a               stand               to               create               the               appearance               that               their               approach               is               the               best.

The               two               sides               have               very               different               approaches               in               determining               the               costs               involved               in               housing               inmates.

It               is               highly               unlikely               that               all               the               variables               can               be               distributed               in               such               a               way               as               to               obtain               an               accurate               measurement.

Items               such               as               different               accounting               practices,               maintenance               costs,               and               health               costs               all               vary               from               one               institution               to               another.
               "At               first               glance,               the               evidence               clearly               establishes               the               economic               advantages               of               privatized               corrections,               but               a               thorough               analysis               of               the               reasons               purported               for               such               advantages               exposes               a               number               of               multifaceted               and               subtle               factors               that               contribute               to               cost               savings"               (Price,               20006,               p.

27).

One               reason               for               the               cost               savings               is               that               private               corporations               shy               away               from               managing               the               more               costly               inmates,               such               as               maximum               security               and               unhealthy               inmates.

When               management               problems               arise,               the               problem               is               handled               by               shipping               the               trouble               maker               back               to               the               public               run               facility.
               "Cost               savings               from               private               prisons               results               in               large               part               from               the               ability               of               private               vendors               to               reduce               certain               personnel               costs,               such               as               retirement               benefits"               (Cobb,               2000,               p.

7).

According               to               the               Bureau               of               Justice               Statistics               2005               Census               of               State               and               Federal               Correctional               Facilities,               the               ratio               of               inmate               to               officer               in               the               public               sector               is               5.6               and               the               private               sector               is               7.1               (Stephan,               2008).

On               average               there               are               two               less               officers               per               inmate               in               the               private               facilities;               a               large               portion               of               the               cost               savings               from               privatization               is               due               to               this               limited               staffing               of               facilities.

Additionally,               public               employees               enjoy               a               higher               standard               of               employee               benefits               at               lesser               costs.

For               example,               public               employee               health               insurance               plans               are               generally               offered               at               a               lower               premium               than               private               employees.

The               public               prison               system               shares               a               greater               portion               of               these               costs.

Many               employee               benefits               are               simply               cut               for               private               employees               or               offered               with               most               of               the               cost               passed               on               to               the               employee               and               not               the               corporation.
               Ultimately,               "the               argument               to               support               privatization               because               it               increases               efficiency               or               saves               money               has               not               been               settled"               (Price,               2006,               p.

20).

"The               review               of               this               issue               has               not               shown               overwhelming               evidence               that               the               privatization               of               prisons               would               save               such               a               substantial               amount               of               money               for               the               authorities               and               ultimately               for               the               taxpayers               that               the               risk               of               mismanagement,               lack               of               government               control,               increased               opportunities               for               corruption,               government               dependence               on               private               corporations,               and               so               on               could               fully               justify               the               operation               of               prisons               by               for-profit               corporations"               (Shichor,               1995,               p.163).

As               for               effectiveness,               the               United               States               Criminal               Justice               Institute               has               reported               that               private               institutions               outperform               public               counterparts               on               many               important               issues               (Price,               2006).

The               U.S.

General               Accounting               Office               has               reviewed               many               studies               concerning               the               way               the               conclusions               are               made               (Shichor,               1995).

"It               noted               that               the               private-public               cost               comparison               was               made               by               using               the               private               company's               expenditures               as               a               basis               and               estimating               from               them               how               much               the               same               service               would               cost               under               public               management"               (Shichor,               1995,               p.

161).
               Discussion:               The               Political               Economy               of               Prisons
               "The               privatization               of               prisons               has               been               politicized               beyond               comprehension"               (Price,               2006,               p.

109).

When               dealing               with               the               issues               of               overcrowding               and               rising               expenditures               associated               with               prison               operations,               politicians               used               privatization               as               a               means               to               solve               the               problem               at               hand.

At               look               at               the               equation               from               a               different               angle,               politicians               may               have               been               searching               for               ways               to               sneak               privatization               into               the               prison               systems               due               to               vested               interests,               and               the               overcrowding               issues               paved               their               way.
               No               matter               the               means               or               the               method,               "A               political               issue               arises               in               that,               prison-business               interest               groups               may               lobby               for               longer               sentences,               stronger               penalties,               stringent               parole               standards,               or               attempts               to               redirect               social               policy               like               "deinstitutionalization."               So               as               to               gain               higher               prison               numbers"               (Sellers,               1993,               p.

51).

Lobbyists               now               push               their               agenda               to               pass               laws               to               make               prison               stays               longer               in               an               effort               to               increase               profits.

"Laws               like               mandatory               sentencing               keep               prisons               full               and               increase               the               labor               supply               in               the               name               of               maximizing               profits"               (Price,               2006,               p.

18).

An               alarming               thought               on               the               subject               is               that               although               the               crime               rate               dropped               over               a               ten               year               period,               for-profit               prisons               grew               their               market               (Price,               2006).

Many               private               prisons               under               contract               are               guaranteed               a               certain               number               of               prisoners.

In               the               event               that               the               quota               is               not               met,               the               prison               will               still               get               paid               for               the               same               number               of               inmates               (Price,               2006).

It               is               the               agenda               on               the               political               level               that               allow               such               practices               to               occur,               and               as               the               strength               of               the               private               institutions               grow               the               problems               will               only               multiply.
               Is               it               morally               or               ethically               proper               to               trade               people               or               should               the               government               be               the               only               means               to               utilize               when               dealing               with               the               socially               undesirables?

Some               argue               that               it               is               just               outsourcing               for               the               government.

There               is               a               difference,               however,               in               discussing               the               outsourcing               of               say               customer               service               agents,               which               replaces               domestic               representatives               with               international               ones,               and               physically               outsourcing               human               beings               to               serve               their               incarceration               abroad.

It               seems               justifiable               to               say               that               privatization               could               be               considered               a               form               of               slavery,               in               that               people               are               basically               sold               for               the               profit               of               another.

Additionally,               "imprisonment               is               one               form               of               legal               punishment               that,               by               definition,               involves               the               deliberate               causing               of               suffering               for               a               convicted               offender               by               the               criminal               justice               system               representing               the               state;               it               raises               questions               about               the               authority               and               legitimacy               of               the               state               and               morality               of               punishment"               (Shichor,               1995,               p.

45).
               In               the               material               above,               there               is               a               great               emphasis               on               quality               of               services.

How               is               quality               measured?

When               the               product               is               essentially               human               beings               one               could               argue               that               anything               less               than               a               normal               existence               would               be               considered               cruel               and               inhumane.

What               are               we               trying               to               accomplish               with               the               act               of               incarceration?

Are               we               simply               providing               a               warehouse               for               humans               that               are               socially               undesirable,               or               are               we               trying               to               rehabilitate               these               individuals               to               re-enter               society               and               become               functioning               contributing               members?

As               a               whole,               it               appears               that               the               private               system               is               in               the               business               of               taking               advantage               of               people.

It               wouldn't               make               any               sense               for               the               private               corporation               to               promote               rehabilitation,               as               it               is               an               industry               that               feeds               on               repeat               offenders.

While               public               facilities               push               for               improving               the               quality               of               life               for               offenders               and               maintain               hopes               to               rehabilitate,               the               private               practice               usually               cuts               the               expense               and               receives               the               profits               with               hopes               that               once               released               the               inmate               will               be               a               loyal               customer               that               returns               for               additional               services.

How               much               sacrifice               will               the               private               company               take               to               make               a               buck?

Ultimately,               they               will               take               what               is               necessary               to               maximize               profits.

               References
               About               CCA.

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               Alabama               Policy               Institute               (n.d.)               What               to               Do               about               the               Prison               Problem?

The               Pros               and               Cons               of               Privatized               Prisons               in               Alabama.

Birmingham:               Johnson               K.A.
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(2007)               Do               Government               Agencies               Respond               to               Market               Pressures?

Evidence               from               Private               Prisons.

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(2008,               March).

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American               Prisons:               Opposing               Viewpoints.

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(1997).

Prisons:               Today               and               Tomorrow.

Gaithersburg:               Aspen               Publishers,               Inc.
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Merchandizing               Prisoners:               Who               Really               Pays               for               Prison               Privatization?

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Weighing               the               Watchmen:               Evaluating               the               Costs               and               Benefits               of               Outsourcing               Correctional               Services.

Las               Angeles:               Segal,               G.

F.,               &               Moore,               A.T.
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