State Budget News
Your source on political action, legislation & voter info

Union asks Controlling Board to table renewal of unbid private prison contracts

May 29, 2003 - The State’s contracts to operate the two private prisons, North Coast Treatment Facility and Lake Erie Correctional Institution, are increasing at a rate that exceeds the public prisons’ increase, say union leaders from the Ohio Civil Service Employees Association.

The state employees union that represents corrections officers is asking the Controlling Board to reject a request by the Department of Rehabilitation and Corrections to renew the private prison contracts for Management Training Corporation without competitive selection. The Controlling Board meets Monday, June 2.

Union officials say the 7 to 9 percent increase the company is requesting proves MTC is not saving the State money. The increase for MTC is considerably more than the 4.5 percent increase in DRC’s budget for the public prisons.

“The private prisons’ whole reason for being is to save money,” said OCSEA Corrections Assembly President Tim Shafer. “These figures prove what we’ve said all along that private prisons aren’t a source of savings.”

“We predicted this would happen. That the private contractors would lowball the initial bid, then gradually raise their rates. And this is what they’ve done,” said Shafer.

OCSEA leaders say the large increase for the private contractor is – at minimum – cause for further scrutiny of the prison contracts. “Aside from the fact the Controlling Board is reviewing this request with an agenda of over 200 items, it doesn’t make fiscal sense to increase spending for a private company at a time when the State’s closing the Lima prison to save money,” said OCSEA Executive Director Irwin Scharfeld.

What’s more, DRC is asking for an automatic renewal of the company’s private prison contracts and that competitive selection be waived. The union has been critical of the administration for renewing unbid contracts in other state agencies, such as the Ohio Department of Job and Family Services.

“This is another example of a political shell game being played with taxpayer dollars and state employees. Contracts with the state are renewed without any formal bid process or any independent audit of savings. These tactics have to stop,” said Scharfeld.

Six competitors bid previously on the prison contract, including OCSEA. “It’s not as if there is no competition for these contracts. Given the State’s lower rate in the next two years, the State in partnership with the union should be trying to bring these prisons back under State control,” asked Shafer.

OCSEA represents 37,000 state employees, 10,000 of whom are state prison employees. For more information contact David Simpson, 614-865-2641