White House Admits 3x More Money Goes to Prisons than Schools

Locutus

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Jun 18, 2007
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Funding for prisons greatly outpaced funding for education, according to a report released Thursday.


U.S. state and local spending on prisons and jails grew at three times the rate of spending on schools over the last 33 years as the number of people behind bars ballooned under a spate of harsh sentencing laws, a government report released Thursday said.

U.S. Secretary of Education John King said the report's stark numbers should make state and local governments reevaluate their spending priorities and channel more money toward education.

Between 1979 and 2012, state and local government expenditure grew by 107 percent to US$534 billion from US$258 billion for elementary and secondary education, while corrections spending rose by 324 percent to US$71 billion from US$17 billion, the U.S. Department of Education report found.

In that same period, the population of state and local corrections facilities surged more than fourfold to nearly 2.1 million from around 467,000, more than seven times the growth rate of the U.S. population overall. The prison population shot up following the widespread adoption of mandatory minimum sentence laws in the 1990s.

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White House Admits 3x More Money Goes to Prisons than Schools | News | teleSUR English
 

tay

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May 20, 2012
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Prisons should not be 'for profit' as it encourages this type of financial abuse............


The American prison system is massive. So massive that its estimated turnover of $74 billion eclipses the GDP of 133 nations. What is perhaps most unsettling about this fun fact is that it is the American taxpayer who foots the bill, and is increasingly padding the pockets of publicly traded corporations like Corrections Corporation of America and GEO Group. Combined both companies generated over $2.53 billion in revenue in 2012, and represent more than half of the private prison business.

So what exactly makes the business of incarcerating Americans so lucrative?

Most of it has to do with the way the American legal system works, and how it has changed over the last 40 years. In the 1970’s, lawmakers were dealing with a nationwide rash of drug-use and crime. By declaring a nation-wide war on drugs in 1971, President Richard Nixon set a precedent for hard-line policies towards drug-related crime. New York governor Nelson Rockefeller followed suit declaring “For drug pushing, life sentence, no parole, no probation.” His policies once put into action promised 15 years to life in prison for drug users and dealers. His policies catalyzed the growth of a colossal corrections system that currently houses an estimated 2.2 million inmates.

The runaway growth of US corrections did not come overnight, and did not come from the government alone. Since the 1970’s federal and state correction agencies have consistently struggled to meet the increased demands brought on by the US Department of Justice and strict drug laws. In 1982, three Texas businessmen, Tom Beasley, John Ferguson, and Don Hutto saw an opportunity in the shortcomings of the Texas corrections system’s inability to deal with this influx of incarcerations. They devised and executed a plan to secure the first government contract to design, build, and operate a corrections facility from the Immigration and Naturalization Service and the Texas Department of Justice.

CCA operates the fifth largest prison system, public or private, in the system in the US. Under its control include 51 owned-and-operated facilities in 16 states and contracted management of 18 more state-owned facilities in 7 states. This network allows CCA to maintain a 44% stake in the $7.4 billion private corrections market for a market cap of $3.53 billion. All of this equates to a massively profitable operation for CCA who recorded $1.64 billion in revenue, $883.1 million of which came from state governments.

The Economics of the American Prison System | SmartAssetSmartAsset Blog