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Myth: The contracting of correctional facilities has not resulted in the promised cost savings for taxpayers.
Fact: The government’s own financial data clearly underscores the savings provided by contractor-run facilities to the taxpayers.
At the federal level, the Bureau of Prisons (BOP) 2016 Per Capita Cost Report shows that low security government-run institutions cost $87.41 per day, per inmate, compared to $68.19 per day for contracted facilities. The BOP Per Capita Cost Report reflects a 22% cost savings for contracted facilities over the most comparable low security federal prisons.
The October 2014 GAO Report on Immigration Detention stated that the median daily cost for an ICE Service Processing Center was about $200 while the median daily cost at Contract Detention Facilities was about $120. Contracted ICE facilities reflect a 40% cost savings to taxpayers.
At the state level, contracted facility cost savings required by state law include: Florida (7%), Kentucky (10%), Mississippi (10%), Ohio (5%) and Texas (10%). It is believed that the cost savings, at individual contract facilities, are far exceeded by the impact they have in creating a healthy competitive environment in the state prison system. Managers and workers of government prisons become more efficient with their costs in competitive response to their contract correctional service providers.
One example of cost savings is in Delaware County where taxpayers were saved millions of dollars. Delaware County’s contract with us provides for a fixed cost, which means that it’s easier for the county to budget for the cost of correctional services and allows for limited budget dollars to be allocated to other priorities for the community.
This contract also transfers risk of litigation to The GEO Group, protecting Delaware county from unpredictable litigation costs.