DENVER—Noting that the state has a stick but no carrots, a legislative committee on Tuesday approved a proposal that would provide financial incentives for private prisons to develop innovative security programs or provide education.
The state Legislature currently sets the per diem rate for state prisoners in private prisons, allowing no flexibility for negotiating contracts.
The House Judiciary Committee approved the incentive program (House Bill 1363) and sent it to the full House for debate.
The Legislature’s Joint Budget Committee is negotiating with the state’s largest private prison provider, Corrections Corporation of America, over its per diem rate of $50.69.
The company has requested a 5 percent increase in its per diem, instead of the 1.5 percent increase proposed by the budget committee.
The company threatened to consolidate all of its Colorado inmates in three of its four facilities in the state if it didn’t get the raise. That would free one prison for inmates from the federal government and other states, some of which pay up to $15 a day more.
The company said that in 2001, the state was paying CCA $53.33 per prisoner per day. The company said it agreed to lower the rate to $50 a day during the recession to help the state save money, and is requesting only that amount plus inflation.
The budget panel since has offered a 3 percent increase, but the company hasn’t said whether it will accept it or proceed with consolidation plans.
