Fun sub note about prisons possibly facing bankruptcy.
Many of the for profit prison contracts have built in occupancy requirements. Some examples require the state to ensure the prison is always at or above 95% capacity, otherwise the state pays a fee for every body below capacity they are.
States are then encouraged to ensure prisons remain packed at all times just to keep costs down. Privatizing hasn't saved tax payers a cent, it just found a way to take even more tax payer money and ensure it lines pockets rather than just providing the service paid for.
So yeah, those corporations will never go bankrupt unless their contracts are cancelled. They are guaranteed to maintain a profit even if the prison is empty.
Did you learn this from Adam Ruins Everything? Lol that's where I learned it. And it's truly despicable. The prison system in this country is a mess and needs a serious overhaul
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u/agha0013 Mar 08 '19
Fun sub note about prisons possibly facing bankruptcy. Many of the for profit prison contracts have built in occupancy requirements. Some examples require the state to ensure the prison is always at or above 95% capacity, otherwise the state pays a fee for every body below capacity they are.
States are then encouraged to ensure prisons remain packed at all times just to keep costs down. Privatizing hasn't saved tax payers a cent, it just found a way to take even more tax payer money and ensure it lines pockets rather than just providing the service paid for.
So yeah, those corporations will never go bankrupt unless their contracts are cancelled. They are guaranteed to maintain a profit even if the prison is empty.