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New Hampshire DOC considers privatizing prisons

The department has sought ideas for lowering prison costs, but any attempts at privatizing services will likely generate opposition

By Shira Schoenberg
The Concord Monitor

CONCORD, NH — The state Department of Corrections needs to save money, and all ideas are on the table.

The department has asked public agencies and private companies to comment on ideas ranging from public-private partnerships in the prisons to building a new multi-state correctional facility. The request for information is open to any organization, including companies interested in getting state contracts to provide the services.

“We’re coming into a tough economic time period now, and there’s going to be a lot of demands to bring in a more efficient budget and keep spending under control the next few years,” said Corrections Department spokesman Jeff Lyons. “This is our step to see what we can do.”

Corrections has always been among the state’s largest costs. State spending on corrections doubled from $52 million in fiscal year 1999 to $104 million in 2009, almost all of that coming from the state’s general fund. The number of prisoners grew by about 700 during the same time period. Recent efforts have focused on reducing recidivism rates. But now, corrections officials appear to be turning their focus to both making department services more efficient and considering replacing outdated prison buildings.

“We need to identify efficient cost-saving methods,” Lyons said. “It’s worth exploring all our options.”

For years, state officials have talked about replacing aging facilities - most notably the women’s prison in Goffstown, which was built in 1978 for use as a county jail, for short-term stays and not as a state prison. The prison has no room for high-risk offenders and is overcrowded and inefficient.

The Legislature in 2009 appropriated $2.3 million for site selection and design of a new women’s prison, and a committee in October recommended the governor and Executive Council release the money. But site selection was deferred until after responses to the request for information.

“The governor believes we need to be gathering this information before making decisions, including expending that money,” said Colin Manning, spokesman for Gov. John Lynch.

In addition, corrections officials wrote in the request, the state has undertaken corrections reforms that could affect the housing and programming needs of inmates. Last year, the Legislature passed a bill aimed at reducing recidivism by allowing inmates out earlier with more supervision and creating a mandatory sentence for parole violations.

The state has also talked about replacing the men’s prison in Concord, which was built in 1878 and renovated in the 1980s. But the cost of rebuilding the prison could exceed $200 million, according to the Department of Corrections, or an amount equal to what the state generally spends on all capital projects over four years.

One idea Lynch raised in 2009 was coordinating with neighboring states to build a 2,000- to 3,000-bed Northern New England Correctional Facility, which would house inmates from New Hampshire, Maine and Vermont. Lynch said that could allow the state to close the Concord prison.

But the idea never moved forward, and the multi-state prison is one idea now mentioned in the department’s request for information.

The request also asks for information about expanding the existing prison in Berlin, which was designed to hold 1,000 inmates but contains beds for just over 550. Lyons said modular units could be used to expand the prison. The request raises the possibility of constructing one or more new prisons for men and women. It also asks for information about out-of-state placements for adult male prisoners.

In addition, the request asks for information concerning “public/ private partnerships, sale/leaseback arrangements and other innovative financing arrangements” in regard to the construction of new buildings or expansion of the Berlin prison.

Finally, it asks for information on saving money in treatment programs and services such as medical care, substance abuse counseling and case management.

The state, with the help of the Council of State Governments Justice Center, the Pew Center on the States, and the U.S. Department of Justice, recently completed a review of ways to reduce recidivism costs. But Lyons said that does not mean the department should stop looking for other ways to reduce the number of inmates returning to jail.

“Who’s to say there aren’t other ideas worth considering in the future to bring the numbers down further?” Lyons said.

The proposal is written in general terms, so it is unclear which parts of corrections could be subject to public-private partnerships. But, Manning said, “all options are going to be looked at.”

Any attempts at privatizing services will likely generate opposition.

Rep. Steve Shurtleff, a Penacook Democrat and member of the House Criminal Justice and Public Safety Committee, said that while other states privatized entire prisons, New Hampshire has not considered that route, and for good reason.

“The state of New Hampshire always felt that it is a state responsibility and we shouldn’t be passing it on to private contractors to administer for us,” Shurtleff said. But the prison system could privatize individual pieces - for example, responsibility for medical care.

Diana Lacey, president of the State Employees’ Association, said the state would open itself up to significant risks by turning aspects of corrections over to for-profit vendors or nonprofits that do not report directly to the state. Private companies could raise their prices for services, while private landowners could raise rent.

“None of us should kid ourselves that private partners are into doing work to save the public money,” Lacey said. “They’re into doing the work to make a profit.”

Lacey said there are also concerns about a multi-state prison. States would have to decide whether it is worth sending prisoners farther from their families. The state would have to deal with different state penal codes, with different requirements for treatment.

Ed Hager, SEA chapter president at the Department of Corrections, said he would be worried about lawsuits and a loss of programming if a for-profit corporation took over.

“When you are looking to house inmates cheaply, you get what you pay for,” Hager said.

Several years ago, Corrections Corporation of America told the state it would be interested in moving prisoners to other states, where the company operates prisons. But nothing came of that proposal. Its local lobbyist, David Collins, said he forwarded the department’s recent request to the corporation.

Neal Kurk, a Weare Republican and Finance Committee member, said the corrections proposals could be dealt with by the Finance Committee during the budget process, if the department is able to come up with enough research to predict the costs and savings. Kurk said privatization proposals may save money.

Typically, states pay private companies per inmate per day, which could lower costs in a state where the prison population is expected to decline. Private companies may pay lower labor costs. And if a new prison is built, Kurk said that could also save money if it is built in a way that requires fewer guards.

The information is due by Feb. 14, a day before the governor releases his budget proposal.

Lyons said he hopes some information will be available for the governor to consider before laying out his budget, but the ideas will likely be considered by the House and Senate committees revising the budget.

Copyright 2011 Concord Monitor/Sunday Monitor